State-run refiners seek moderate green hydrogen purchase targets

State-run refiners want the government to set easier green hydrogen purchase obligations as steep obligations would make their recently-built grey hydrogen-production units redundant.

A government proposal has mandated that green hydrogen should make up 10 per cent of the overall hydrogen requirements of refiners in three years, increasing to 25 per cent by 2030. The state refiners have made significant investments in the last few years to set up grey hydrogen plants in their refineries as part of the government mandate to upgrade fuels to lower sulphur content in petrol and diesel. Accelerated adoption of green hydrogen would cut utilisation of the existing grey hydrogen-producing facilities. This could hamper the monetisation plans of the refiners. They want green hydrogen obligation to rise to no more than 10 per cent by the end of the decade.