ANNOUNCEMENTS
The petroleum refining sector comprises one of the largest contributory industrial greenhouse gas emissions through its operations. Additionally, refining processes that require the use of hydrogen (such as hydrocracking and desulfurization) create a considerable carbon footprint. This paper contributes to reducing that carbon footprint by exploring the barriers to deploying green hydrogen for grey hydrogen in refining operations, with a focus on the Indian context. Through comprehensive literature review, the results of the literature review identify the potential of green hydrogen as a decarbonisation tool, but its impact has been slowed by significant costs of production; inadequate infrastructure; electrolyser inefficiencies; and policy fragmentation. In the current marketplace, the Levelized Cost of Carbon abatement (LCCA) for green hydrogen in refining is not economically competitive, especially in a context where no sector-specific support measures are in place.
To address the barriers identified, the paper offers a new multi-faceted policy framework that costs risks to significantly amplify the market development of green hydrogen in refining. The framework encompasses measures including contracts for difference (CfDs), renewable electricity Tax credit, and dynamic carbon pricing. The paper concludes that the pathway to achieve a scalable and affordable green hydrogen transition in the refining sector in India will require a technology-integrated and policy-aligned framework.
