Page 41 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Highlighting the significant progress in the hydrogen sector since the last edition of the International
Conference on Green Hydrogen, Shri Puri said that since the last conference, India has secured an
electrolyser manufacturing capacity of approximately 3,000 MW, achieved 412,000 tonnes per annum
(TPA) in green hydrogen production, and issued tenders for 450,000 TPA of green hydrogen and 739,000
TPA of green ammonia. He emphasized that green hydrogen offers higher efficiency and zero direct CO2
emissions compared to fossil fuels and traditional energy sources.

Outlining India's strategic vision and potential in green hydrogen production, Shri Hardeep Singh Puri
emphasized that India is uniquely positioned to meet the global hydrogen demand, which is expected to
reach 200 million tonnes by 2030. With abundant natural resources and a robust infrastructure, India is
set to become a key player in the green hydrogen sector. Shri Puri highlighted India’s competitive
advantage due to its low-cost solar energy and significant investments in the power grid. The country's
installed solar capacity has surged from 2.6 GW in 2014 to 85.5 GW in 2024, supported by one of the
largest synchronous grids in the world capable of managing intermittent renewable energy. This positions
India as a leading producer of green hydrogen, ready to cater to both domestic and global markets.

The Minister detailed India’s ambitious Green Hydrogen Policy and National Green Hydrogen Mission. The
Green Hydrogen Policy aims for a production target of 5 million tonnes by 2030, supported by incentives
such as a 25-year waiver of inter-state transmission charges for projects commissioned before June 2025.
The National Green Hydrogen Mission, with an initial investment of Rs. 19,744 crores, is expected to
significantly reduce fossil fuel imports by Rs. 1 lakh crores by 2030. This initiative will likely generate over
6 lakh jobs and attract investments totalling more than Rs. 8 lakh crores. Additionally, the Minister noted
that several states including Maharashtra, Uttar Pradesh, Madhya Pradesh, Kerala, Odisha, Andhra
Pradesh, and Tamil Nadu are developing policies to further incentivize green hydrogen usage, reinforcing
India’s commitment to becoming a global leader in green energy.

In his concluding remarks, Shri Hardeep Singh Puri emphasized that while the global green hydrogen value
chain is still developing, India must address challenges including green financing, trade routes, and human
resource upskilling. He expressed confidence in India's ability to create a thriving hydrogen hub, benefiting
economic development and energy security.

Joint Statement on meeting between Minister of Petroleum and Natural Gas of India and Minister of
Mines and Energy of Brazil on Cooperation between India and Brazil in the Energy Sector

The Minister of Petroleum & Natural Gas of the Republic of India, H.E. Mr. Hardeep S Puri, paid an official
visit to the Federative Republic of Brazil from September 19th – 21st on the invitation of the Minister of
Mines & Energy of the Federative Republic of Brazil, H.E. Mr. Alexandre Silveira. H.E. Hardeep Puri was
accompanied by Indian Oil & Gas Companies representing both the upstream and downstream sector.

During the visit, the sides reviewed the existing collaboration in the energy sector including Indian
upstream investment, mutually beneficial relationship in bilateral trade and cooperation in sustainable
fuels, particularly biofuels.

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