The Centre has initiated discussions for possible export of green hydrogen to France, Italy and Germany. The government is sending the proposals through the Ministry of External Affairs.
India is targeting other European Union nations such as Netherlands, Austria and Sweden for its green hydrogen exports. Exports are sought under Article 6.2 of the Paris Agreement.
According to a report of the National Green Hydrogen Mission, bilateral negotiations with Japan, South Korea and Singapore are “underway” for signing the agreements. The second meeting of the empowered group under the mission was held earlier this month.
Article 6.2 (and 6.3) of the Paris Agreement are not about markets per se but they create a framework on how to account for transfers between parties and what conditions need to be met. These internationally transferable (climate change) mitigation outcomes can be a result of any mitigation approach ( mechanism, procedure or protocol). The provisions of the agreement will allow transfer of Internationally Transferable Mitigation Outcomes (ITMOs) - quantified in terms of carbon credits - from one country to another.
“(The) Bureau of Energy Efficiency has notified the Carbon Credit Trading Scheme 2023. Green Hydrogen and its derivatives will also be allotted carbon credits as per methodology developed by Bureau of Energy Efficiency,” the report, accessed by businessline, said adding that the Bureau of Energy Efficiency and Ministry of Environment, Forest and Climate Change is formulating Monitoring, Reporting, Verification (MRV) guidelines for the scheme.
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Last August, the Centre announced that India is open to allow carbon credit transfers to countries that buy green hydrogen from it and a framework in this regard is being worked out with Japan. Pilots for a second green steel project—using hydrogen to make steel—is also underway.
Green ammonia, the preferred form to transform the fuel, is a derivative of green hydrogen. Green hydrogen is produced by splitting water and hydrogen using electrolysers which are run by renewable energy sources.
Pilot Projects in India
Three Ministries—Steel, Ports and MoRTH— have been working on pilot projects and fund allocations.
The Steel and Port Ministries are yet to come up with “themes and structures” of the pilot projects, but the Ports Ministry is developing common user facilities near major ports like Kandla, Paradip and Tuticorin. Kolkata Port is also working with NTPC to explore the possibility of having a green hydrogen hub at the port.
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The Ministry of Road Transport and Highways is “conducting discussions on route selection in accordance with availability of hydrogen fuelling stations with IOCL,” the committee report mentioned adding that the process (of route selection) will be concluded by October. The first phase of pilots is likely by FY24-end.
Other supported projects include pilots for “supply of firm and dispatchable power using green hydrogen as storage”—which is in its final stage, the report mentioned. Concept note on hydrogen hubs has been drafted and EoI is likely to be rolled out in November.