May 26, 2023
With growing energy demands, India will witness a significant rise in exploration and production (E&P) activities
India has also made significant progress in its energy transition, with ethanol blending increasing from 1.4% in 2014 to 10% in November 2022
To promote green hydrogen, the government has allocated INR 19,700 crore under the production-linked incentive (PLI) scheme in the FY24 budget
The Indian economy will exceed US$ 20 trillion by 2040, with per capita income increasing tenfold
India aims to become a prominent hub for green hydrogen, encompassing production, consumption, and exports by 2040, according to Hardeep Singh Puri, the Minister of Petroleum and Natural Gas.
Speaking at a Confederation of Indian Industry (CII) event, Puri expressed optimism about India’s prospects in the next 15 years, stating that the country will witness significant demand, production, and consumption of green hydrogen, including the major export of green ammonia. He emphasized that India will lead the advancements in green hydrogen rather than merely following others.
Puri also highlighted India’s economic growth projections, predicting that the Indian economy will exceed US$ 20 trillion by 2040, with per capita income increasing tenfold, and attributed this growth to India’s energy requirements and its transition to green energy. With the growing energy demands of a developing nation, he anticipates a significant rise in exploration and production (E&P) activities. Furthermore, increased affordability and spending power will accelerate the transition to green energy.
Puri urged the event attendees to make investment decisions based on the forecast that India will account for 25% of global demand in the next 20 years, until 2045. To promote green hydrogen, the government has allocated INR 19,700 crore under the production-linked incentive (PLI) scheme in the FY24 budget. Puri clarified that the PLI funding acts as a catalyst, as abundant resources and investments are pouring into the sector.
Puri further mentioned that India, having ascended from the 10th to the 5th largest economy, will further become the world’s third-largest economy, reaching US$ 4.3 trillion from the current US$ 3.8 trillion.
While India has set a net zero commitment deadline of 2070, Puri noted that companies like Indian Oil (IOCL) and Bharat Petroleum (BPCL) have set more ambitious individual targets for 2046 and 2040, respectively.
India has also made significant progress in its energy transition, with ethanol blending increasing from 1.4% in 2014 to 10% in November 2022, ahead of schedule. The deadline for the 20% blending target has been advanced to 2025, surpassing the previous target of 2030.
Source: Financial Express