State-run refiners seek easier green hydrogen buy obligations

State-run refiners want the government to set moderate green hydrogen purchase targets as they fear steep obligations could leave their recently-built grey hydrogen-producing facilities partly redundant and hurt their monetisation plan, according to people familiar with the matter.

The government is currently discussing a slew of steps, including imposing green hydrogen purchase obligations on several sectors including refining, fertilizer, city gas, steel, and power in phases. A government proposal requires green hydrogen to make up 10% of the overall hydrogen requirements of refiners in three years, increasing to 25% by the end of the decade.