Context:The world’s energy system is mainly powered by fossil fuels. The transition to a low-carbon one will shift its underpinnings away from coal, oil, and gas to the minerals needed for solar, wind, nuclear, and other technologies.
Which countries have such mineral reserves that can be mined?
Bauxite: Primary source of aluminum. Essential for wind turbines, solar panels, batteries, electrolyzers, and transmission cables.
Chromium: Key for geothermal and concentrated solar power. Used in wind turbines, and for radiation shielding in nuclear power plants.
Cobalt: Used in consumer electronics, catalysts for the oil industry, resistant metal alloys, critical components in many lithium-ion battery technologies.
Copper: Critical element in solar photovoltaics, wind power, battery storage, and electricity grids.
Graphite: Key component of battery anodes and therefore important for the transition to electric vehicles, and stationary batteries for balancing electricity grids.
Lithium: Core component of lithium-ion batteries.
Manganese: Widely used in solar and wind power, and in lithium-ion batteries for electric cars.
Molybdenum: Has a very high electrical conductivity but expands little when exposed to heat.
Nickel: Key component in the cathodes of lithium-ion batteries in electric cars.
Rare earths: Used in wind power for permanent magnets.
Silver: It’s most important role in clean energy is in solar photovoltaics and electric vehicles.
Uranium: Primary fuel for nuclear energy production.
Context: The Government of India, while presenting the Union Budget for FY 2024-25, inter alia, made announcements on the expansion of India’s nuclear energy sector, proposing partnerships with the private sector for research and developing Bharat Small Reactors (BSR), Bharat Small Modular Reactors (BSMR) as well as newer nuclear energy technologies.
India’s three Stage nuclear programme
1st Stage: Pressurised Heavy Water Reactor
The first stage includes the setting up of Pressurised Heavy Water Reactors (PHWRs) and associated fuel cycle.
PHWRs use natural uranium (U-238) as fuel and heavy water (deuterium oxide) as coolant and moderator.
The Nuclear Power Corporation of India Limited (NPCIL) presently operates 22 commercial nuclear power reactors with an installed capacity of 6,780 MWe.
2nd Stage: Fast Breeder Reactors:
The Fast Breeder Reactor (FBR) will initially use the Uranium-Plutonium Mixed Oxide (MOX) fuel.
The Uranium-238 surrounding the fuel core will undergo nuclear transmutation to produce fuel (Plutonium, Pu-239), thus earning the name ‘Breeder’.
Also, by transmutation, Thorium-232 will create fissile Uranium-233 which will be used as fuel in the third stage.
In 2003, the Government had approved the creation of Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) to construct and operate India’s most advanced nuclear reactor-Prototype Fast Breeder Reactor (PFBR). Once the FBR attains criticality, India will only be the second country after Russia to have a commercial operating Fast Breeder Reactor.
Benefits of FBR
FBR is thus a stepping stone for the third stage of the program paving the way for the eventual full utilisation of India’s abundant thorium reserves.
Electricity generated by FBR would be a source of green energy as the waste (Plutonium) from the first stage nuclear programme is reprocessed and used as fuel in FBR. Hence, it offers significant reduction in nuclear waste generated, thereby avoiding the need for large geological disposal facilities.
In terms of safety, the PFBR is an advanced reactor with inherent passive safety features ensuring a prompt and safe shut down of the plant in the event of an emergency.
Despite the advanced technology involved, both the capital cost and the per unit electricity cost is comparable to other nuclear and conventional power plants.
Hence, the second stage of the Indian nuclear power program is imperative to meet the twin goals of energy security and sustainable development.
3rd Stage: Thorium-based Reactors
The third stage will utilise India’s vast Thorium reserves. For it an Advanced Heavy Water Reactor (AHWR) is proposed that will use Uranium-233.
By transmutation, Thorium will create fissile Uranium-233 which will be used as fuel in the third stage.
Key Points
Aims to achieve 500 Gigawatts of non-fossil fuel energy by 2030, as pledged at COP26, Glasgow 2021.
Investment and Capacity Goals:
India’s country profile, as published by the World Nuclear Association in September 2024 recognises an in-principle proposed gross increment of 32 GWe in the Indian nuclear energy production capacity.
The ambitious expansion requires significant capital investment and skilled resources.
Legislative hurdles for private participation
The Atomic energy act 1962, the primary governing statute at the helm of the development and the operation of the nuclear energy sector.
Pertinently, Section 3(a) of the AEA, 1962 empowers only the central government “to produce, develop, use and dispose of atomic energy”.
The AEA gives the government sole control and responsibility over all activities in respect of nuclear energy either through an authority or company established by it.
In essence, the Department of Atomic Energy (DAE) and the Nuclear Power Corporation of India Limited (NPCIL) currently have overarching control over the nuclear energy infrastructure.
Supreme Court Ruling (September 2024): Sandeep T.S. vs Union of India & others.
Dismissed a petition challenging AEA’s restrictions on private participation, emphasizing strict regulatory safeguards due to potential misuse and accidents.
Regulatory Uncertainty:
Ongoing legal challenges to the Civil Liability for Nuclear Damage Act, 2010 (CLNDA), create uncertainty for private investments.
CLNDA aims to ensure no-fault liability of operators for nuclear accidents, but its constitutionality is under scrutiny.
The Civil Liability for Nuclear Damage Act, 2010 (CLNDA) is a significant piece of legislation in India that addresses liability and compensation for nuclear damage.
Objective: The Act aims to provide a framework for compensating victims of nuclear damage arising from a nuclear incident. It establishes a no-fault liability regime, meaning the operator of a nuclear facility is liable for damages regardless of fault.
Liability: The operator of the nuclear installation is primarily liable for nuclear damage. The Act caps the maximum liability of the operator at ₹1,500 crore (approximately $180 million). If the damage exceeds this amount, the Central Government will cover additional costs up to 300 million Special Drawing Rights (SDRs).
Claims Commissioner: The Act provides for the appointment of a Claims Commissioner to adjudicate claims for compensation. It also establishes a Nuclear Damage Claims Commission to handle larger claims and ensure prompt compensation.
Right of Recourse: The operator has the right to recourse under certain conditions, such as if the nuclear incident results from an act of terrorism or if the damage is caused by a supplier’s defective equipment.
Insurance: Operators are required to maintain insurance or other financial security to cover their liability for nuclear damage.
Exclusion of Jurisdiction: Civil courts are excluded from entertaining any suit or proceeding related to claims for nuclear damage, ensuring that all claims are handled by the designated authorities.
This Act was crucial for operationalizing the 2008 Indo-U.S. civilian nuclear agreement, as it provided the necessary legal framework for foreign companies to participate in India’s nuclear energy
Financial Risks: Nuclear projects require substantial upfront investment and have long gestation periods. The high costs and financial risks deter private investors, especially given the uncertainties around project completion and return on investment.
Public Perception and Acceptance: Public opposition to nuclear power due to safety concerns and environmental impact can affect the willingness of private companies to invest. Building public trust is crucial but challenging.
Technological Challenges: Developing and maintaining nuclear technology requires specialized knowledge and infrastructure. The private sector may lack the necessary expertise and resources to manage these complex technologies.
Waste Management: Handling and disposing of nuclear waste is a critical issue. The long-term storage and management of radioactive waste pose significant challenges and require stringent regulatory compliance.
Market Competition: Nuclear power competes with other forms of energy, such as renewables, which are often cheaper and face fewer regulatory hurdles. This makes it harder for nuclear power to attract private investment
Current status of Private Sector Involvement:
Historically limited to engineering, procurement, and construction (EPC) roles, with companies like Megha Engineering & Infrastructures participating.
Measures to increase private investment
NITI Aayog Report:
Discusses promoting private sector involvement in Small Modular Reactors (SMRs) and emphasizes the need for:
A supportive regulatory framework.
A clear civil nuclear liability framework.
Public-Private Partnerships (PPP):
Proposed structure where government retains 51% ownership of nuclear plants, allowing private investment while ensuring government accountability.
Entities with majority government ownership would be subject to transparency requirements under the Right to Information Act.
Liability Concerns:
High liability standards are necessary due to the risks associated with nuclear technology, as evidenced by past disasters like Chernobyl and Fukushima.
Compensation for nuclear incidents is governed by the CLNDA, but its constitutionality is being challenged, raising concerns over the adequacy of liability protections.
Legislative Needs:
Comprehensive legislation is essential to address the sensitive nature of nuclear technology and foster a conducive business environment.
Legislative and policy adjustments will be crucial for achieving India's energy generation goals through renewable sources.
The path for private participation in India’s nuclear energy sector requires careful navigation of existing laws and challenges, with significant implications for investment and regulatory frameworks.
Context: The Ministry of New and Renewable Energy (MNRE) has exempted export-oriented green hydrogen projects from its domestic solar module manufacturer list (ALMM), allowing them to use cheaper imported solar modules.
Major Highlights:
The ALMM (Approved List of Models and Manufacturers) is a registry of domestically produced solar modules approved by the Indian government to promote the use of locally made products in solar energy projects.
By granting the exemption to export-oriented green hydrogen projects from ALMM, the MNRE allows green hydrogen projects set up for export purposes (in Special Economic Zones or Export-Oriented Units) to use imported solar modules instead of the more expensive domestic ones.
This exemption is intended to reduce the production cost of green hydrogen, making it more competitive with cheaper, carbon-intensive grey hydrogen. The lower costs can help green hydrogen producers compete globally and drive export growth.
In addition to cost-reduction measures, MNRE is supporting the green hydrogen sector through initiatives like the SIGHT programme, with Rs 17,490 crore allocated for electrolyser manufacturing and green hydrogen production.
The ministry has also waived transmission charges for 25 years and exempted green hydrogen projects from prior environmental clearance. Further, it has notified 73 green hydrogen standards for production and application of Green hydrogen.
Hydrogen as an alternative fuel
Hydrogen is the lightest and the most abundant element in the universe. On Earth, it is found in compounds like water or hydrocarbons. However, Hydrogen is not present in the free state. Therefore, it must be created and stored before it tends to be utilised.
Hydrogen Fuel: Hydrogen fuel is produced by splitting water (H₂O) into its components: hydrogen (H₂) and oxygen (O₂). The hydrogen gas can be used to power fuel cells, which generate electricity through a chemical reaction between hydrogen and oxygen, releasing only water vapour as a byproduct.
Owing to its clean combustion, producing only water as a byproduct, makes it an attractive option for reducing greenhouse gas emissions and combating climate change. Thus, Hydrogen is gaining significant attention as a potential alternative fuel.
Ways of using Hydrogen as a fuel:
Hydrogen Fuel Cell: Fuel cells based on Hydrogen and Oxygen. Produces Water as a by-product.
Hydrogen CNG (Used as transportation fuel): Mixture of hydrogen and CNG in a fixed ratio, enables Hydrogen being used as fuel in conventional engines. HCNG increases the efficiency of combustion of CNG and is less polluting.
Types of Hydrogen
Hydrogen can be produced from a variety of resources, such as natural gas, nuclear power, biomass, and renewable power like solar and wind. Hydrogen is an invisible gas. Depending on the type of production used, different colour names are assigned to the hydrogen.
Some common types of Hydrogen
Grey hydrogen: Grey hydrogen is produced using fossil fuels such as natural gas or coal. Grey hydrogen accounts for roughly 95% of the hydrogen produced in the world today.
The two main production methods are steam methane reforming and coal gasification. Both of these processes release carbon dioxide (CO2).
If the carbon dioxide is released into the atmosphere, then the hydrogen produced is referred to as grey hydrogen.
Blue Hydrogen: Blue hydrogen is similar to grey hydrogen, except that most of the CO2 emissions are sequestered (stored in the ground) using carbon capture and storage (CCS).
Capturing and storing the carbon dioxide instead of releasing it into the atmosphere allows blue hydrogen to be a low-carbon fuel.
Blue hydrogen is a cleaner alternative to grey hydrogen, but is expensive since carbon capture technology is used.
Green Hydrogen: Green hydrogen is hydrogen produced using electricity from clean energy sources, such as wind and solar energy, which do not release greenhouse gases when generating electricity.
Green hydrogen is made when water (H2O) is split into hydrogen (H2) and oxygen (O2) via a process known as electrolysis.
Pink Hydrogen: Pink hydrogen is produced through electrolysis of water but using energy from nuclear power, which does not produce any carbon dioxide emissions.
Pink hydrogen facilities can achieve a high capacity factor due to the steady base-load profile of nuclear power (involving both stability and density), as compared to the intermittent supply from renewable sources (solar, wind).
Turquoise Hydrogen: Turquoise hydrogen is made using a process called methane pyrolysis. In this process methane is split into hydrogen and solid carbon with heating in reactors or blast furnaces.
Utility of Hydrogen fuel
Abundant in nature and highly efficient. E.g., Hydrogen is two to three times more efficient than petrol.
Hydrogen is a versatile fuel which can be transported as gas by pipelines or in liquid form like LNG and can be transformed into electricity by fuel cells.
Strengthen energy security by being a direct replacement of fossil fuels.
Green hydrogen can be stored for a long period and can be used when renewable energy is not available for power generation with stationary fuel cells or hydrogen-ready gas turbines.
Green hydrogen is a clean fuel which can decarbonise a range of sectors including iron and steel, chemicals, and transportation.
Facilitate acceleration to the green economy. Presently, hydrogen is used in the refining industry, ammonia making, methanol manufacturing, steel making industries etc.
Challenges in using Hydrogen as a fuel
High production cost: Majority of hydrogen at present is extracted by energy-intensive processes like breaking down fossils, electrolysis of water etc. which adds to the cost of production of Hydrogen. Further, Hydrogen needs to be kept at a stable minus 253°C (far below the temperature of (-) 163°C at which Liquified Natural Gas (LNG) is stored), which needs scaling of technology and makes its ‘prior-to-use-cost’ extremely high.
Extraction causes pollution: Production of grey hydrogen is responsible for around 830 million-tonnes of carbon dioxide annually.
Safety of hydrogen fuel tanks: Hydrogen is highly flammable and explosive in nature, it is colourless, odourless, and its flames are not visible by naked eyes.
Storage capacity requirement: India has insufficient storage capacity for the current state of domestic consumption.
Lack of operational fuelling station infrastructure is a big barrier to adoption of hydrogen fuel-cell vehicles. It would require large-scale investments in underground piping and underground caves and filling stations.
National Hydrogen Mission
The National Green Hydrogen Mission was launched in January 2023, with an outlay of Rs. 19,744 crores from FY 2023-24 to FY 2029-30.
Aim: To develop India into a global hub for production, usage and export of Green hydrogen and its derivatives.
The scheme envisages generation of hydrogen from green power sources with a target of 5MMT production capacity of Green Hydrogen per annum.
Initiative of: Ministry of New and Renewable Energy (MNRE).
Way Forward
Development of technology to produce "green" hydrogen is expensive. However, falling prices for renewable energy and fuel cells and stringent climate change regulations have spurred investment in the sector.
Investing in R&D and promoting private sector participation in the hydrogen economy.
Developing standardised procedures, rules and standards for hydrogen economy which will standardise and scale up production.
Mandating large users of hydrogen to shift to green hydrogen such as refineries, iron, and steel plants etc. For example, A minimum green hydrogen mandate can be introduced in such industries.
Green hydrogen facilities can be created at sites where the cost of producing renewable energy is lowest. E.g., In Thar desert region in Rajasthan and Ladakh etc.
Facilitating international trade in clean & green hydrogen.
Context: A global team, including scientists from Assam, Odisha, China, and the UK, has developed a superhydrophobic catalyst to significantly reduce biodiesel production costs. This catalyst mimics natural water-repellent surfaces, such as lotus leaves, and promises substantial cost reductions and efficiency improvements in biodiesel production.
What is Biodiesel?
Oils from oilseeds are basically straight chain hydrocarbons but long ones.
This is the only difference between biodiesel and diesel.
If we take vegetable oil and break its long hydrocarbon straight chain into 1/3rd, 1/3rd, 1/3rd you get biodiesel.
Biodiesel can directly replace diesel in diesel-IC engines.
The resultant product, i.e, biodiesel is called ester.
That’s why the process of breaking long straight chain hydrocarbons into short chains is called transesterification.
Breaking can be done by following ways:
Heat it: Pyrolysis
Apply pressure: Cracking
Replace double bonds with hydrogen: Hydrogenation
Feedstock for Biodiesel Production
Any oil seed can be used to extract oil. However, better option is to use non-edible oil seeds.
There are more than 200 variety of oil seeds that can be used to produce biodiesel.
Some common examples include rice bran, sal, neem, mahua, karanja, castor, linseed, jatropha, honge, rubber seed etc.
Advantages of Biodiesel
Fuel
Energy density] (in MJ/ kg)
Ethanol
24-25
Petrol
43-44
Biodiesel
40-41
Diesel
45.5
High energy density
Low energy input
Nitrogen-fixation
No Sulphur
No aromatics
A case for biodiesel
India uses 5 times more diesel than petrol, so an alternative for diesel is more important than that for petrol.
De-sulphurisation of diesel is cost intensive.
Rural development: growing oilseed-based crops for biodiesel will augment farmer’s income.
Converting degraded land
Improves soil fertility as most oilseed-crops are leguminous crops which helps in nitrogen fixation.
Key Features of the Superhydrophobic Catalyst
Innovation and Robustness:
The superhydrophobic catalyst is designed to withstand the water by-product in biodiesel production, maintaining high effectiveness and allowing multiple reuses. This innovation is crucial for enhancing the cost-effectiveness and efficiency of the biodiesel production process.
Economic Impact:
Current biodiesel costs around $1.2 per litre. The new catalyst can potentially lower this cost to approximately 37 cents per litre, making biodiesel a more viable alternative to conventional diesel, which costs around ₹87 per litre in India.
Environmental and Economic Benefits:
The catalyst, derived from biomass such as cellulose, is ecologically benign and abundant. This approach not only reduces production costs but also promotes the use of sustainable energy sources, contributing to a greener future.
Broader Implications:
The successful implementation of this catalyst could lead to wider adoption of biodiesel, thus supporting India's energy security and reducing dependence on fossil fuels.
Research and Development Contributions
The catalyst development involved collaboration among multiple international institutions, including the National Institute of Technology (NIT) Silchar in Assam, NIT Rourkela in Odisha, the University of Cambridge, and Guizhou University in China. This highlights the importance of global cooperation in advancing sustainable technologies.
Technological Advancements
The catalyst utilizes activated carbon derived from biomass. This approach not only leverages sustainable resources but also provides an alternative to expensive materials like graphene and carbon nanotubes, making the technology more accessible and cost-effective.
Potential Applications and Future Prospects
Beyond biodiesel production, the superhydrophobic catalyst could have applications in other areas where water-resistant materials are beneficial, such as in coatings and filtration systems.
The research paves the way for further innovations in biofuel production, potentially leading to even more cost reductions and efficiency improvements in the future.
Government Policies and Support
National Policy on Biofuels (2018):
The Government of India has been promoting biofuel production through various initiatives. The National Policy on Biofuels (2018) supports biofuel production in Special Economic Zones (SEZs) and Export Oriented Units (EOUs), allowing import of feedstock for export-oriented biofuel production without restrictions.
Amendments and Targets:
Recent amendments to the National Policy on Biofuels include advancing the target for 20% ethanol blending in petrol to 2025-26 from 2030, and allowing more feedstocks for biofuel production. This aligns with the 'Make in India' initiative and aims to foster indigenous technological developments, boosting employment and reducing petroleum imports.
Regulatory Framework:
The Ministry of Petroleum and Natural Gas has issued guidelines for the sale of biodiesel for blending with high-speed diesel, ensuring quality and quantity standards are maintained. This regulatory framework is crucial for the integrity and reliability of the biodiesel market.
Strategic Importance
Adoption of such technologies aligns with India's strategic goals under the National Policy on Biofuels, aiming to achieve energy independence by 2047 as part of the Atmanirbhar Bharat (Self-reliant India) initiative.
This development also supports global environmental goals by promoting cleaner, renewable energy sources, reducing greenhouse gas emissions, and addressing climate change.
Conclusion
The development of a superhydrophobic catalyst for biodiesel production represents a significant technological breakthrough with far-reaching economic and environmental benefits. Supported by robust government policies and regulatory frameworks, this innovation aligns with India's goals of energy security, sustainability, and economic growth.
Context: India is in talks with large domestic companies to invest in the regulated nuclear sector, including promoting clean power through generation of pink hydrogen.
Present Status:
Restricted Private Ownership: The Atomic Energy Act, 1962 restricts private companies from owning and operating nuclear power plants in India.
Central Government Control: The central government, currently through public sector corporations like Nuclear Power Corporation of India (NPCIL), holds the authority for activities related to nuclear energy, including its production, development, use, and disposal.
Amended Act (2015): The 2015 amendment to the Atomic Energy Act, allows NPCIL to form joint ventures with other public sector units to secure funding for new projects. However, this does not extend to private or foreign companies.
Private Sector Participation: Currently, private companies can participate in specific areas like supplying components and reactors, but not owning or operating plants.
Future Considerations: Discussions are ongoing about allowing more private sector involvement, potentially through Public-Private Partnerships (PPPs). This would likely require further amendments to the Act.
Types of Hydrogen:
Hydrogen can be produced from a variety of resources, such as natural gas, nuclear power, biomass, and renewable power like solar and wind.
Hydrogen is an invisible gas. Depending on the type of production used, different colour names are assigned to the hydrogen.
Some common types of Hydrogen:
Grey hydrogen: Grey hydrogen is produced using fossil fuels such as natural gas or coal. Grey hydrogen accounts for roughly 95% of the hydrogen produced in the world today.
The two main production methods are steam methane reforming and coal gasification. Both of these processes release carbon dioxide (CO2).
If the carbon dioxide is released into the atmosphere, then the hydrogen produced is referred to as grey hydrogen.
Blue Hydrogen: Blue hydrogen is similar to grey hydrogen, except that most of the CO2 emissions are sequestered (stored in the ground) using carbon capture and storage (CCS).
Capturing and storing the carbon dioxide instead of releasing it into the atmosphere allows blue hydrogen to be a low-carbon fuel.
Blue hydrogen is a cleaner alternative to grey hydrogen but is expensive since carbon capture technology is used.
Green Hydrogen: Green hydrogen is hydrogen produced using electricity from clean energy sources, such as wind and solar energy, which do not release greenhouse gases when generating electricity.
Green hydrogen is made when water (H2O) is split into hydrogen (H2) and oxygen (O2) via a process known as electrolysis.
Pink Hydrogen: Pink hydrogen is produced through electrolysis of water but using energy from nuclear power, which does not produce any carbon dioxide emissions.
Pink hydrogen facilities can achieve a high-capacity factor due to the steady base-load profile of nuclear power (involving both stability and density), as compared to the intermittent supply from renewable sources (solar, wind).
Turquoise Hydrogen: Turquoise hydrogen is made using a process called methane pyrolysis. In this process methane is split into hydrogen and solid carbon with heating in reactors or blast furnaces.
Context: India's energy security challenges may escalate in future, particularly, due to the recent geopolitical tensions in the Middle East, which may cause volatility in crude oil prices and pose a risk of supply-chain disruption.
India’s Crude oil dependence:
India is the world's third-largest importer of crude oil, and the third-largest consumer of oil overall, behind the US and China.
According to the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas, India imported 232.5 million tonnes of crude oil in the financial year 2023-24.
India's crude oil import dependence increased to 87.7% in 2023–2024, up from 87.4% in the previous year. This is due to a combination of high demand and stagnant domestic production.
Russia is India's top oil supplier, accounting for more than 30% of India's imports in 2023.Before the Ukraine conflict, Iraq was India's top supplier of crude oil, followed by Saudi Arabia and the United Arab Emirates. However, after the invasion, Russia climbed to the top, driven by substantial discounts on oil prices.
Nevertheless, over 40% of India’s oil at present is sourced from the Middle East region, and the recent geopolitical tensions in the region may pose supply disruptions.
India’s present options:
Increasing supply from Russia: India is exploring options to increase purchase from Russia through the Chennai-Vladivostok route (which passes through the Sea of Japan, the South China Sea and Malacca Strait), in case the traditional route through the Red Sea cannot be used.
Importing Liquefied Natural Gas (LNG): India, the world's fourth-largest LNG importer, seeks to diversify its LNG import options to ensure stable and secure gas supplies. India imported a total 19.85 million tonnes of LNG in FY 2022-2023, of which 10.74 million tonnes, or 54%, came from Qatar.
Buildingtransnational pipelines: Transnational pipelines could have been an alternative for India, but certain political reasons have hindered their success.
Myanmar-Bangladesh-India gas pipeline did not fructify because the Bangladesh side, due to domestic political compulsions, wanted certain bilateral matters to be included in the tripartite gas agreement which were not acceptable to the Indian side.
Iran-Pakistan-India gas pipeline project, despite agreement on several technical and commercial issues, did not progress due to political instability in Pakistan.
Turkmenistan-Afghanistan-Pakistan- India (TAPI) gas pipeline project had problems due to civil conflict in Afghanistan.
Need for a Long-term integrated energy policy:
Energy Security Concerns: Over 40% of India's oil comes from the volatile Middle East. Geopolitical tensions and sanctions can disrupt supplies, impacting prices and economic stability.
Meeting Growing Demand: India's energy demand is projected to surge by 1.8% annually until 2040. A comprehensive policy ensures sufficient and reliable energy supplies to fuel this growth.
Domestic Resource Potential: India has an immense potential for renewable energy sources like solar and wind. A well-integrated policy can unlock this potential, reducing dependence on imports and fostering energy independence.
Environmental Sustainability: India is the world's third-largest emitter of greenhouse gases. An integrated policy that prioritises renewable energy and energy efficiency is vital to meet climate change commitments and ensure a sustainable future.
Way Forward:
The Indian government drafted a National Energy Policy (NEP) in 2017, which aimed to achieve goals like universal energy access, energy security, environmental sustainability, and economic growth through a diversified energy mix. However, India still has not finalised the draft NEP. India’s integrated energy policy should focus on:
Energy Mix Diversification: Overreliance on any single source of energy can pose risks to energy security. A diversified energy mix can enhance resilience and mitigate supply disruptions. India needs a balanced approach that optimises fossil fuel use, promotes renewable energy integration, and explores cleaner options like Nuclear Energy and Hydrogen.
Renewable Energy Promotion: India has made significant progress in renewable energy, particularly in solar and wind power. A long-term energy policy should prioritise the promotion and expansion of renewable energy sources. This can be achieved through incentives, subsidies, and supportive regulations to encourage investments in renewable energy projects.
Infrastructure Development: India needs to upgrade the power grid infrastructure for integration and management of renewable energy sources. The policy should prioritise investments in grid modernisation, including the development of smart grids and energy storage systems.
Energy Conservation: Promoting energy conservation across sectors (industries, buildings, and transportation) can significantly reduce India's overall energy demand.
Research and Development: Encouraging research and development in clean energy technologies can ensure long-term sustainability, reduce reliance on imported technologies and foster innovations that reduce energy cost.
Conclusion:
India needs a long-term and integrated energy policy that projects the country's energy requirements over the next 25 years, while taking into account domestic production, import requirements of fossil fuels, and our commitments to transition towards clean energy.
Context: As per the latest annual report of Gas Exporting Countries Forum (GECF), India will be the world’s largest growth market for natural gas in the next decade with China claiming the top spot till 2030.
About Gas Exporting Countries Forum (GECF)
The GECF is an intergovernmental organisation that provides a framework for exchanging experience and information among its member countries.
With its current number of member countries, the GECF enjoys a dominant position on global energy markets and among international energy organisations.
Members
Full Members: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, UAE and Venezuela.
Observers: Angola, Azerbaijan, Iraq, Malaysia, Mauritania, Mozambique, Peru and Senegal.
Together, they represent 69% of the world’s gas reserves, 39% of the marketed production, and 40% of global gas exports.
As the gathering of the world's leading gas exporting countries, the GECF seeks to build a mechanism for a meaningful dialogue between gas producers and consumers in order to improve the stability and security of supply and demand in gas markets around the world.
Context: 41st Steering Committee Meeting of International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) is being hosted in India.
About International Partnership for Hydrogen & Fuel Cells in the Economy (IPHE)
IPHE is an international partnership mechanism to organise and implement, effective, efficient and focused international research, development, demonstration and commercial utilisation activities related to hydrogen and fuel cell technologies.
The formation of IPHE was facilitated by US Department of Energy and US Department of Transportation in 2003 to foster international cooperation on hydrogen and fuel cell.
Membership of IPHE: 23 Countries including India and the European Commission. However, membership of IPHE does not result in any legally binding obligations on Partners.
Functions of IPHE are:
Identify and promote potential areas of bilateral and multilateral collaboration on hydrogen and fuel cell technologies.
Analyse and recommend priorities for research, development, demonstration and commercial utilisation of hydrogen technologies and equipment.
Analyse and develop policy recommendation on technical guidance, including common codes, standards and regulations to advance hydrogen and fuel cell technology development, demonstration and commericial use.
Foster implementation of large-scale, long-term public private cooperation to advance hydrogen and fuel cell technology and infrastructure research, demonstration and commercial use, in accordance with Partners' priorities.
Coordinate and leverage resources to advance bilateral and multilateral cooperation in hydrogen and fuel cell technology research, development, demonstration and commercial utilisation.
Address emerging technical, financial, legal, market, socio-economic, environmental and policy issues and opportunities related to hydrogen and fuel cell technology that are not currently being addressed elsewhere.
Organisation of IPHE
Chair of the IPHE is elected by IPHE members for a term of two years, with a potential for renewal.
Steering Committee with two representatives for each of the Partner countries governs the overall framework and procedures of IPHE.
Secretariat of IPHE to be coordinate overall activities of IPHE.
Funding of IPHE: Any costs arising from the activities will be borne by the Partner that incurs them. Secretariat Office is supported by voluntary contributions (Financial or in-kind) of all members.
Context: Mumbai high turns 50. This makes one wonder, why no other discovery has earned such repute — despite discoveries being announced by various players.
What are the issues involved?
What ere the unique properties of Mumbai High which increased its prospects?
Mumbai High is a large anticlinal structural — that is, an arch-like fold in the rock that has its oldest beds at its core.
Structural traps of hydrocarbon deposits were considered easy oil as these are easily interpreted.
Such structural features have been discovered in other basins also, but the size has not been comparable to Mumbai High.
In the deeper parts of the basins, stratigraphic traps are more likely to be present with significant hydrocarbon (oil + gas) deposits. However, these are difficult to identify on classical seismic interpretation as well as difficulty in drilling deeper wells with high temperature-high pressure conditions.
Understanding the petroleum traps:
Petroleum trap is an underground rock formation that blocks the movement of petroleum and causes it to accumulate in a reservoir that can be exploited.
The oil is accompanied always by water and often by natural gas; all are confined in a porous and permeable reservoir rock, which is usually composed of sedimentary rock such as sandstones, arkoses, and fissured limestones and dolomites.
The natural gas, being lightest, occupies the top of the trap and is underlain by the oil and then the water.
A layer of impermeable rock, called the cap rock, prevents the upward or lateral escape of the petroleum.
That part of the trap actually occupied by the oil and gas is called the petroleum reservoir.
Many systems have been proposed for the classification of traps; one simple system divides them into structural traps and stratigraphic traps.
Structural traps are formed by tectonic events, such as folding or faulting of rock units. It forms as a result of changes in the structure of the subsurface. These changes block the upward migration of hydrocarbons and can lead to the formation of a petroleum reservoir.
The most common type of structural trap is formed by an anticline, a structure with a concave (as viewed from below) roof caused by the local deformation of the reservoir rock and the impermeable cap rock.
Stratigraphic traps are related to sediment deposition or erosion and is bounded on one or more sides by zones of low permeability.
Note: Structural trap is formed by the tectonic processes AFTER deposition of the reservoir beds involved while stratigraphic traps are formed during the depositions of the reservoir beds.
Sedimentary basins in India:
There are 26 sedimentary basins in India, covering a total area of 3.4 million square kilometer. The area is spread across onland, shallow water up to 400 meter water depth and deepwater farther up to Exclusive Economic Zone (EEZ). Of the total sedimentary area, 49% of total area is located onland, 12% in shallow water and 39% in the deepwater area. There are 16 onland basins, 7 located both onland and offshore and 3 completely offshore.
These basins are divided into three categories based on maturity of hydrocarbon resources as under:
Category-I (30% of total basinal area): Basins, which have reserves and already producing.
Category-II (23% of total basinal area): Basins, which have contingent resources pending commercial production
Category-III (47% of total basinal area) Basins, which have prospective resources awaiting discovery
Context: The Prime Minister of India virtually launched India’s first indigenously developed hydrogen fuel cell ferry which will be deployed for service at Varanasi in Uttar Pradesh.
About the Hydrogen fuel cell ferry:
The Hydrogen fuel cell vessel is 24-metre-long which can carry 50 people in its air-conditioned passenger area. The accommodation area has been constructed with high-quality fiberglass reinforced plastic, similar to metro train coaches.
Manufactured by: Cochin Shipyard Limited
Built at a cost of Rs 18 crore, the ferry will be handed over to the Inland Waterways Authority of India after rigorous trials. The Ministry of Ports, Shipping and Waterways met 75 per cent of the project cost.
This vessel uses a 50-kW PEM (Proton-Exchange Membrane/Polymer Electrolyte Membrane Fuel Cell Power System) fuel cell, with Lithium-Ion Phosphate batteries. The vessel has five hydrogen cylinders that can carry 40 kg of hydrogen and support eight hours of operations. The vessel is also fitted with a 3-kW solar panel.
PEM fuel cells are popular in automotive applications because they operate at a lower temperature, and are lighter and more compact.
The vessel has zero emission, zero noise and is energy-efficient, which makes it more environment-friendly.
The most common fuel cell is a Hydrogen fuel cell, that combines hydrogen fuel with oxygen, to produce electricity, with water and heat as the byproducts.
The cell consists of a cathode (negative electrode), an anode (negative electrode) and an electrolyte (can be solid, liquid or membrane based). The electrolyte facilitates the movement of ions or charge carriers between the electrodes.
Also known as Proton Exchange Membrane fuel cells, use a polymer electrolyte membrane (PEM) as the electrolyte.
PEM is a solid polymer electrolyte typically made of a perfluorosulfonic acid material, such as Nafion.
This membrane allows the transport of protons (H+) through the membrane while blocking the passage of electrons. It plays a crucial role in separating the anode and cathode reactions.
Fuel: Hydrogen with oxygen as an oxidising agent.
Working of PEM Fuel Cell:
Anode and Cathode: At the anode, hydrogen gas is typically supplied, and it undergoes electrochemical oxidation to produce protons (H⁺) and electrons (e⁻). The electrons flow through an external circuit, creating an electric current.
Catalysts: Platinum or other platinum-group metals are commonly used as catalysts on the anode and cathode to facilitate the electrochemical reactions.
Electrochemical Reactions:
At the anode: 2H2→4H+ + 4e-
At the cathode: O2 + 4H+ + 4e- →2H2O
Proton Exchange: Protons generated at the anode move through the PEM to the cathode, while electrons flow through an external circuit, creating an electrical current.
Characteristics of PEM Fuel cells:
Operating Temperature: PEM fuel cells operate at relatively low temperatures (between 60-80 degrees Celsius), allowing for quick start-up times (less warm up time).
Catalyst Requirement: To facilitate the separation of electrons and protons in hydrogen, PEM fuel cells use a noble-metal catalyst, typically platinum, leading to high cost.
Carbon Monoxide Sensitivity: The platinum catalyst is highly sensitive to carbon monoxide (CO) poisoning. If the hydrogen used in the fuel cell is derived from a hydrocarbon fuel, it may contain trace amounts of CO. The presence of CO can significantly degrade the performance of the platinum catalyst, leading to a decrease in fuel cell efficiency over time.
Carbon Monoxide Reduction Reactor: To address the issue of CO poisoning, an additional reactor is often employed to reduce the levels of CO in the fuel gas before it reaches the fuel cell. This reactor adds complexity and cost to the overall system.
Water Management: PEM fuel cells require effective water management to maintain the hydration level of the PEM. Water produced during the electrochemical reactions needs to be removed from the membrane to prevent flooding.
Applications of PEM Fuel Cell:
Transportation (such as fuel cell vehicles)
Stationary power generation (backup power systems to power buildings)
The ‘Harit Nauka’(green boat) is an initiative of the Ministry of Ports, Shipping and Waterways that envisages a green transition of inland vessels.
In January 2024, the ministry unveiled the Harit Nauka guidelines for inland vessels. As per the guidelines, all states have to make efforts to use green fuels for 50 per cent of inland waterways-based passenger fleets in the next one decade, and 100 per cent by 2045. This is to reduce greenhouse gas emissions as per the Maritime Amrit Kaal Vision 2047.
Globally, the shipping industry is increasingly transitioning to green fuels due to environmental regulations, sustainability goals, and advancements in green fuel technologies.
Hydrogen and its derivatives are gaining attention for promising zero-emission fuels for the industry.
Context: India’s focus on energy security and clean energy transition in the recent budget.
What is the present status of India’s energy sector?
Fossil and non-fossil contribution:
Total generation including renewable sources (trends)
India's energy demand will continue to provide fuel for future economic growth and is bound to grow exponentially in the coming years.
At present the country is world's 3rd largest consumer of oil, 3rd largest LPG consumer, 4th largest LNG importer, 4th largest refiner, 4th largest automobile market.
India is likely to account for 25% of global energy demand growth over the next two decades.
India’s final energy demand is expected to double to about 1,200 Mtoe (millions tonne of oil equivalent) by 2070.
The report titled ‘India’s energy-transition pathway: A net-zero perspective by FICCI and Deloitte India’, has projected that the country requires a massive $15 trillion in investments to achieve its net-zero emissions target by 2070.
Issues in India’s energy sector:
Uneven Distribution of Energy Resources which further lead to regional disparities in energy availability and consumption.
Over Dependency on Fossil Fuels as still India’s more than 50% of electricity generation comes only from fossil fuels.
Renewable Energy Integration into the grid poses challenges due to their intermittent nature.
Energy Access is also an issue in remote and rural areas having rugged terrain & topography.
Financial Health of DISCOMs in India is also not good as they are facing financial stress, leading to issues in maintaining and upgrading the electricity distribution infrastructure.
Global and Geopolitical Factors such as fluctuating oil prices and geopolitical tensions, can impact India's energy security and prices. This becomes significant in the backdrop of the fact that India meets close to 88% of its crude oil requirements through imports.
Sustainability: Balancing economic development with environmental sustainability is a critical challenge
This is one of the reasons why India has been focusing on energy transition. In fact, in last year’s Budget (2023-24) government had provided for ₹35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security.
Recent budget announcements in this regard:
Commitment to meet net zero by 2070 — viability gap funding for wind energy (offshore); setting up of coal gasification and liquefaction capacity, phased mandatory blending of CNG, PNG and compressed biogas; and financial assistance for procurement of biomass aggregation machinery.
Rooftop solarisation — one crore households will be enabled to obtain up to 300 units of free electricity.
Adoption of e-buses for public transport, and strengthening the e-vehicle ecosystem.
A new scheme of bio-manufacturing and bio-foundation.
Challenges in India’s clean energy transition:
Intermittency and Grid Integration: The integration of intermittent renewable energy sources like solar and wind into the grid poses challenges in balancing supply and demand, as these sources depend on weather conditions.
Land Acquisition: Securing suitable land for renewable energy projects, especially large-scale solar and wind farms, is a challenge especially in densely populated regions. This can also impact the land use.
Financial Viability and Investment: The high upfront costs of renewable energy projects, coupled with financial constraints, can hinder the rapid deployment of clean energy technologies.
Energy Storage Technologies: Efficient and cost-effective energy storage technologies are crucial for storing excess energy generated during peak times and supplying it during periods of low renewable energy production. Developing and implementing such technologies at scale is a challenge.
Logistics: For e.g. India’s waste collection is highly informal which becomes a huge challenge in the way of biogas generation. Preliminary processes like collection, transportation, and segregation limit it’s adaptation.
Lack of support from Discoms: For e.g. Discoms have been reluctant to aid rooftop solar installations as they fear a loss of revenue with consumers moving to another energy source.
Geopolitical factors:Supply chain disruptions in critical minerals can affect the renewable and EV revolution.
What can be a way ahead in this regard?
Regional approach should be followed. For e.g In North India has a huge scope of biogas, western Indian has scope of solar energy. Similarly coastal states and Ladakh region has huge wind potential.
Domestic manufacturing of critical components is necessary to reduce import dependence.
Energy efficient storage systems should be built to manage the issue of intermittency. India can leverage innovation in lithium-ion batteries and battery recycling technology to enhance energy storage capabilities and optimize renewable energy utilization.
Recycling & repurposing: Along with battery recycling, India has begun repurposing used batteries into sustainable 2nd-life Battery Energy Storage Systems (BESS), saving 98% of GHGe compared to making new batteries.
Experts also feel that a separate body can be built on lines of GST council with States as members to ensure uniformity in terms of regulations and policies.
Financing: Nationalised banks should offer easy financing options with affordable interest rates, for e.g. under the PM Suryodaya Yojana, facilitating broader access to capital for installation.
Role of Discoms: Discoms should conduct extensive awareness campaigns and technical workshops to educate potential beneficiaries and also streamline the process of providing solar and net meters to reduce installation time and expedite project completion.
Bilateral negotiations are necessary to ensure supply of critical minerals. E.g. Indo-Australia critical mineral investment partnership.
Steps already taken by Government of India:
To achieve its target of 500 GW in renewable power capacity by 2030, India has implemented various measures:
Waiver of transmission system charges for inter-state solar and wind power sales,
Establishing renewable power purchase obligations, and creating Ultra Mega Renewable Energy Parks
Support to domestic manufacturing through Production-Linked Incentive (PLI) schemes.
Setting up of innovative green energy trading platforms such as the GTAM (Green Term Ahead Market) and GDAM (Green Day Ahead Market). These platforms enable renewable energy developers to sell power on the open market without signing long-term Power Purchase Agreements.
Context: Leaders of India, Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius and UAE have launched Global Biofuel Alliance on the sidelines of G20 Summit in New Delhi.
About Global Biofuel Alliance (GBA)
Global Biofuel Alliance is an initiative by India as the chair of G20 that aims to serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels.
It is an alliance of governments, international organisations and industry to facilitate adoption of biofuels.
It brings together biggest consumers and producers of biofuels aiming to drive biofuels development and deployment and position biofuels as a key to energy transition and economic growth.
Global Biofuel Alliance intends to expedite the global uptake of biofuels through:
Facilitating technology advancements
Intensifying utilisation of sustainable biofuels
Shaping robust standard setting
Certification through the participation of a wide spectrum of stakeholders.
Facilitate mobilising a virtual marketplace to assist industries, countries, ecosystem players in mapping demand and supply and connecting technology providers to end users.
Facilitate development, adoption and implementation of internationally recognised standards, codes, sustainability principles and regulations to incentivise biofuels adoption and trade.
Act as a central repository of knowledge and an expert hub.
Partner countries and organisations of GBA
19 countries and 12 international organisations have already agreed to join the Global Biofuel Alliance.
G20 member countries part of GBA: Argentina, Brazil, Canada, India, Italy, South Africa and USA.
G20 invitee countries part of GBA: Bangladesh, Singapore, Mauritius & UAE
Non-G20 supporting GBA: Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda and Finland.
International Organisations:World Bank, Asian Development Bank, World Economic Forum, World LPG Organisation, UN Energy for all, UNIDO, Biofutures Platform, International Civil Aviation Organisation, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.
GBA Members constitute major producers and consumers of biofuels. USA (52%), Brazil (30%) and India (3%) contribute about 85% of global production of ethanol and 81% of global consumption of ethanol.
