UAE: India’s clean energy transition is on fast track, says oil minister

India, the world’s third-largest energy consumer, is accelerating its transition towards renewables and remains on track to reach its net zero emissions targets by 2070, a top minister said in Abu Dhabi.

India’s Minister for Petroleum and Natural Gas Hardeep Singh Puri highlighted the success of the National Policy on Biofuels launched by Prime Minister Narendra Modi in 2018 to reduce carbon emissions and boost energy security.

“We set ourselves a target of 10 per cent ethanol blending by November 2022 and achieved it five months in advance,” he said at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023.

First green hydrogen fuel cell bus

The Indian government has also revised its target to achieve 20 per cent ethanol blending by 2025 from 2030. Currently, there are more than 5,000 fuel stations retail E20, which is a blend of 20 per cent ethanol with petrol. While the electric vehicles market is booming in India, last month, the country’s first green hydrogen fuel cell bus was launched too.

“India is moving on the green transition very fast. We are confident that by 2025, our energy consumption, of 20 per cent will be biofuels.”

Last year, India launched the National Green Hydrogen Mission with the intended objectives of making the country a leading producer and supplier of Green Hydrogen in the world.

“If there is any place in the world, where green hydrogen will succeed, it will be India. Transitioning to green energy is taking place way faster than what we had anticipated.”

Global Biofuel Alliance

Last month, Modi along with the leaders of the UAE, Singapore, Bangladesh, Italy, the US, Brazil, Argentina, and Mauritius, also unveiled the Global Biofuel Alliance, on the sidelines of the G20 Summit in New Delhi.

“The transition is taking place at a more comprehensive scale in order not only to meet India's requirements, but I see both in refining capacity and other areas, India will be a major player, both for domestic and export users.”

The minister pointed out that India has done well with the “availability and affordability” of oil.

“We were able to navigate through availability and affordability because the Prime Minister, in particular, is very sensitive to the effect of price on the common man.”

Indian government lowered the federal excise duty on transport fuels in November 2021 and May 2022, and some states reduced the value added tax (VAT) on petrol and diesel.

Can manage oil at $100

The minister pointed out that India can manage a situation where oil prices cross $100 a barrel.

“I hope it doesn’t go beyond $100 because then you shouldn’t be worrying about the impact on India, India will manage. India is a large economy. It has a lot of domestic production. We will cut back. We will do something. I would worry about what happens to other parts of the developing world, the Global South, that is a really worrying point. If the price goes above $100, this thing is not going to be in the interest of either the producing country or anyone’s interest. You will have large organised chaos. I wouldn't worry about India. We will manage.”

He added that despite global challenges, India's growth remains resilient.

“India still is one of the poorest countries in terms of development challenges and yet we are moving. In a year and a half, we will be among the top three economies in the world. We are growing. At a time when half of the world is in recession, India’s last quarter growth was 7.8 per cent.”

Puri noted that even as India’s net zero target is set for 2070, most major energy firms including IOCL, BPCL, GAIL among others, will hit their goals by or before 2040.

ALSO READ:

• UAE plans to generate 19.8 gigawatts of clean energy by 2030: Minister

• UAE: Firm focuses on green steel production to bolster decarbonisation

• COP28: Dr Al Jaber calls on oil, gas industry to step up and drive climate solutions

• Abu Dhabi to offer 100 investment opportunities with market size of Dh123 billion

• COP 28