Responding to the industry’s requests for a green hydrogen purchase obligation, a top government official said that the Centre is considering it

Bengaluru: Responding to the industry’s requests for a green hydrogen purchase obligation, a top government official said on Tuesday that the Centre is considering it. Speaking during a panel discussion on ‘Green Hydrogen economies: Matching demand and supply’ at India Energy Week (IEW) 2023, Bhupinder Singh Bhalla, Secretary for the Ministry of New and Renewable Energy (MNRE) said, “There is a provision for purchase obligation for green hydrogen in the mission statement. And we are considering it. It’s not something that we have put aside.”

The statement marks a shift in the government’s stance as after releasing the National Green Hydrogen Mission, it had said that it is not considering purchase obligations for green hydrogen as the gap between the cost of production of green and grey hydrogen has become smaller due to an increase in the price of natural gas.

Purchase obligation necessary for creating market: ReNew Power Chairman

Speaking during the panel discussion, ReNew Power Chairman and Managing Director (CMD) Sumant Sinha said that purchase obligation will be required to create a market for green hydrogen. “India is using 5-6 MT of grey hydrogen. Purchase obligation is required to create a market for green hydrogen,” said Sinha.

The view was also echoed by Indian Oil’s Director (R&D) Dr SSV Ramakumar who said that the PSU is anticipating green hydrogen purchase obligations.