Home / Industry / Energy /  Fertiliser makers, refiners may have GHPO
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Oil refineries, fertiliser companies and steel producers are likely to be asked to meet a compulsory green hydrogen purchase obligation (GHPO) in a planned national move to green energy.

The purchase obligation, part of a comprehensive green hydrogen mission to be announced shortly, will be of around 10-15% initially, and revised upwards in the next three-four years.

Officials in the know said the GHPO will be akin to renewable purchase obligations (RPO). The mission is also expected to list the sectors that will have to start using green hydrogen on a voluntary basis and give a roadmap for sectors such as fertilizer and petrochemicals for mandatory use of the green fuel.

“The green hydrogen ecosystem is expected to pick up in a greater way in about four-five years from now and that is when higher purchase obligation would be required," said one of the officials cited above.

Another official said the announcement of a comprehensive green hydrogen mission is expected soon. On 25 May, Mint reported that the mission is likely to be launched in two months.

The primary focus for adoption of green hydrogen is likely to be oil refineries, fertilisers and chemical industry. A recent report by EY said oil refineries using grey hydrogen for desulphurisation, ammonia production for fertilisers and chemicals industry, and treatment of basic metals are the leading market opportunities for green hydrogen in the short-medium term.

Ganapati D. Yadav, National Science Chair of the Science and Engineering Research Board, said that several oil refiners have already started using green hydrogen and fertiliser industry would also follow suit. Steel and nickel industries are the other key areas where there are major opportunities for the adoption of green hydrogen, he added.

“India is the second largest producer of steel after China and the country is expected to produce around 300 million tonnes by 2030 which provides a big opportunity for usage of green hydrogen. Production of 1 tonne of steel results in the emission of 2.3 tonne of CO2," he said.

According to the EY report, the ‘Green Hydrogen Policy’ will kick-start energy transition efforts, particularly in emission-intensive industries. Green hydrogen blending with piped natural gas is another major market for boosting demand, it said.

The Centre unveiled the green hydrogen policy in February, promising cheaper renewable power, fee waiver for inter-state power transmission for 25 years for projects commissioned before June 2025, land in renewable energy parks, and mega manufacturing zones to help local industries wean themselves off fossil fuels.

The policy, aimed at promoting green hydrogen and green ammonia, also spoke of facilitating the ‘banking’ or storage of green power, where a green power producer can save surplus renewable power with an electricity distribution company for up to 30 days.

Queries sent to the ministry of new and renewable energy remained unanswered till press time.

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