Hydrogen policy to cut the green fuel's cost by 50 per cent, claims Indian Oil
India's largest oil marketing firm Indian Oil Corporation claims the newly announced green hydrogen policy will cut the cost of this clean fuel by up to 50 per cent. The IOC also says that this is a watershed moment in the country's energy transition. This policy would bring down costs of hydrogen adoption and increase its use, believes IOC.
Indian Oil Corporation has also said that it will set up green hydrogen plants at its Mathura and Panipat refineries by 2024 to replace carbon-emitting units.
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SSV Ramakumar, Director for Research and Development at IOC, said that the new policy will help cut the cost of manufacturing green hydrogen by 40-50 per cent. "This policy is the single biggest enabler by the state for production of green hydrogen," he told PTI.
Hydrogen is considered one of the cleanest fuel solutions and alternatives to petrol and diesel. While petrol and diesel emit carbon monoxide and other pollutants, CNG or Auto LPG too are not completely clean and carbon neutral. Hydrogen on the other hand emits only water while generating energy for the vehicle's powertrain. However, the high cost of hydrogen powertrains is one key bottleneck for the industry's growth.
The oil refineries, steel manufacturers too use hydrogen as a process fuel to produce the finished products. Hydrogen is used in oil refineries to remove excess sulphur from petrol and diesel. Currently, hydrogen is produced from fossil fuels such as natural gas or Naptha and results in carbon emissions. This hydrogen is called grey hydrogen.
IOC now aims to replace this grey hydrogen with green hydrogen. Green hydrogen is manufactured from electricity generated by renewable energy sources.