FROM BIOENERGY TO GREEN HYDROGEN REGULATIONS : ANALYSING INDIAN SCENARIO WITH A LOOKOUT AROUND THE GLOBE
Introduction
Bioenergy, derived from organic materials such as
biomass, agricultural residues, and waste, has long been a vital source of
renewable energy. Meanwhile, green hydrogen—produced by splitting water into
hydrogen and oxygen using renewable energy sources—has emerged as a promising
solution for decarbonizing industries and transportation. Together, bioenergy
and green hydrogen represent a powerful synergy for creating cleaner,
sustainable energy systems.
As global efforts to combat climate change
intensify, there is growing emphasis on sustainable energy solutions that can
reduce greenhouse gas emissions. Bioenergy-driven hydrogen production is
gaining attention for its potential to generate green hydrogen using renewable
resources, offering a dual benefit of waste management and clean energy
production. This innovation not only helps mitigate the environmental impact of
traditional fossil fuels but also aligns with the shift toward sustainability
in business practices.
This convergence of bioenergy and hydrogen
production plays a crucial role in supporting Environmental, Social, and
Governance (ESG) strategies. By unlocking negative emissions and promoting
circular energy systems, bioenergy-based hydrogen solutions offer an
opportunity for businesses to meet climate goals while adding long-term ESG
value.
Understanding Bioenergy-Driven
Green Hydrogen: Benefits for the Environment and Society
Bioenergy refers to the energy derived from organic
materials, primarily biomass, which includes agricultural residues, forest
residues, and other organic waste. This biomass can be converted into green
hydrogen through several processes, making it a renewable and sustainable
energy source .To produce hydrogen from bioenergy, biomass undergoes conversion
processes such as gasification, pyrolysis, or anaerobic digestion.
This biogas can be further processed to extract
green hydrogen. By converting biomass into green hydrogen, we leverage waste
materials for cleaner energy production, reducing our reliance on fossil fuels.
Bioenergy and green hydrogen production can
significantly contribute to achieving negative emissions. When biomass is used
for energy, the CO2 released is offset by the amount previously absorbed during
plant growth. Moreover, Carbon Capture, Utilization, and Storage (CCUS)
technologies can enhance this potential by capturing CO2 emissions generated
during biomass conversion processes, which can be utilized or stored
underground, further mitigating climate change.
Integrating green hydrogen into bioenergy
strategies aligns with climate goals by promoting carbon-negative emissions and
supporting sustainable practices. This dual approach enhances energy security
while contributing to global climate objectives.
Bioenergy-driven hydrogen projects create
substantial job opportunities in rural areas through biomass collection,
processing, and plant operation. Local communities benefit economically by
participating in biomass supply chains or owning shares in green hydrogen
facilities.
Training and skills development in clean energy
technologies are crucial for empowering rural populations. By equipping
individuals with the skills necessary to operate bioenergy facilities, these
projects foster expertise in sustainable practices while promoting economic
resilience in rural regions. Integrating green hydrogen production enhances the
long-term viability of these initiatives, supporting a transition to a cleaner
energy future.
Governance and Policies
Governance challenges in bioenergy and hydrogen
production primarily revolve around policy clarity and sustainable biomass
sourcing. For bioenergy projects to scale successfully, there is a need for
well-defined policies that encourage investment and growth. Governments must
implement regulatory frameworks that provide financial incentives such as
subsidies, tax breaks, and central financial assistance to make bioenergy and
green hydrogen production more viable.
The National Bioenergy Programme, launched
by the Indian Ministry of New and Renewable Energy (MNRE), focuses on
converting waste and biomass into valuable energy resources, contributing to
India's clean energy targets and sustainable development goals. This sub-scheme
aims to convert urban, industrial, and agricultural waste into energy, such as
biogas, BioCNG, and electricity. The program provides Central Financial
Assistance (CFA) for setting up large-scale biogas, BioCNG, and power plants.
Equally important is the sustainable sourcing of
biomass, a key input in bioenergy production. Careful governance is required to
avoid deforestation, overuse of agricultural land, and threats to biodiversity.
Ensuring that biomass is sourced without compromising food security or natural
ecosystems is critical. Policies should emphasize the use of agricultural
residues, waste, and non-food crops to mitigate environmental damage.
The Sustainable Alternative Towards Affordable
Transportation (SATAT) initiative, launched by the Indian government,
focuses on promoting the production and use of Compressed Biogas (CBG) as a
sustainable energy source. SATAT offers long-term purchase agreements and
pricing support for CBG producers through collaborations with public sector oil
marketing companies (OMCs). This helps make CBG projects financially viable and
encourages private sector participation in green energy initiatives.
India is on an ambitious path toward a clean energy
transition, targeting 50% of its installed electric power capacity from
non-fossil fuel-based sources by 2030 and aiming for net-zero emissions by
2070. Modern bioenergy plays a key role in this journey due to India’s large
surplus of biomass and organic waste.
- The Electricity Act of 2003: This Act facilitates the
promotion of bioenergy by enabling State Electricity Regulatory
Commissions to support cogeneration and electricity production from
renewable sources, including bioenergy. Key provisions include the
Renewable Purchase Obligation (RPO), which mandates the procurement of
electricity from renewable sources, open access to the grid for renewable
energy, and preferential tariffs for bioenergy projects.
- Amended National Tariff Policy 2016: This policy requires
Distribution Licensees to procure 100% of the power produced from
Waste-to-Energy plants in the state at tariffs determined by the
Appropriate Commission under the Electricity Act, 2003. This mandate
ensures that energy produced from waste is fully utilized and incorporated
into the grid.
- Policy on Biomass Utilization (2017): In 2017, the Government of
India introduced a policy to promote the use of biomass pellets in
coal-based power plants. This policy encourages co-firing of biomass
(agricultural residues and other biomass) in thermal power plants, thereby
reducing coal consumption and associated emissions. Technical
specifications for biomass pellets were defined in 2018 to further
facilitate this transition.
- Renewable Energy Recognition for Biomass Co-firing
(2019): In 2019, the Government of India declared that power generated
from the co-firing of biomass in coal-based power plants would be
considered renewable energy. This power generation method is also eligible
for meeting the non-solar Renewable Purchase Obligation (RPO), promoting
biomass as a viable renewable energy resource.
- Municipal Solid Waste (MSW) to Power Plants
Exemptions (2021): In July 2021, the government directed
Appropriate Commissions to exempt charges for interstate open access sales
of power generated from Municipal Solid Waste (MSW) and provide
regulatory relaxations similar to those offered to solar and wind power
plants.
- Amendments to Central Motor Vehicles
Rules (2015): To encourage the use of bio-CNG (compressed biogas)
in motor vehicles, the Central Motor Vehicles Rules were amended in 2015.
This allows bio-CNG to be recognized as a motor vehicle fuel produced from
waste, supporting its use in transportation and helping reduce emissions
in the sector.
- National Policy on Biofuels (NPB) 2018: The National Policy on
Biofuels sets ambitious targets for biofuel use in India. It aims for a
20% ethanol blending in petrol and 5% biodiesel blending in diesel
by 2030. In addition, the government has accelerated the timeline to
achieve 20% ethanol blending by 2025-26. This will be supported by the
establishment of Second Generation (2G) bio refineries, technological
advancements in biofuel production, and policies creating an enabling
environment for biofuel integration into conventional fuel systems.
International Perspective
- Sustainable Development Goals (SDGs)
The United Nations’ Sustainable Development Goals
provide a comprehensive framework for countries to develop policies that
promote renewable energy, including bioenergy and hydrogen. Specifically, Goal
7 aims to ensure access to affordable, reliable, sustainable, and modern energy
for all, emphasizing the need for clean energy solutions like bioenergy-driven
hydrogen.
- International Energy Agency (IEA)
The International Energy Agency (IEA) plays a
pivotal role in promoting policies that enhance energy security and
sustainability. The IEA provides guidelines for bioenergy use, ensuring that practices
align with environmental and health standards. Their reports and
recommendations help countries shape their bioenergy and hydrogen policies
effectively.
- European Union (EU) Regulations
The European Union has established comprehensive
regulations to promote bioenergy and green hydrogen through initiatives like
the Renewable Energy Directive (RED II). This directive sets sustainability
criteria for biofuels and biogas production, emphasizing the need for reduced
greenhouse gas emissions and encouraging the use of waste and residues. The
EU's Hydrogen Strategy also outlines plans for scaling up hydrogen production,
focusing on green hydrogen from renewable sources, which includes bioenergy.
- Paris Agreement
The Paris Agreement, a global treaty on climate
change, encourages countries to reduce their greenhouse gas emissions and
transition to low-carbon energy sources. By promoting bioenergy and hydrogen as
alternative energy sources, the agreement supports national commitments to
enhance sustainability and meet international climate goals.
- Global Bioenergy Partnership (GBEP)
The Global Bioenergy Partnership (GBEP) is a
collaboration of governments and organizations aimed at promoting sustainable
bioenergy. GBEP provides guidelines and indicators for bioenergy
sustainability, helping countries implement best practices while considering
social, economic, and environmental impacts.
Integrating into ESG Strategies
- Integrating into corporate Environmental,
Social, and Governance (ESG) strategies : It presents a significant opportunity
for companies to align with sustainability goals while enhancing long-term
business value.
- Incorporating Bioenergy-Driven Hydrogen into
Sustainability Goals : Companies should start by embedding
bioenergy-driven hydrogen into their long-term sustainability objectives.
This involves setting specific targets for reducing greenhouse gas
emissions through the transition from fossil fuels to bioenergy-based
hydrogen.
- Leveraging Policy Support and Financial
Incentives :
Utilizing government policies and financial incentives that support
bioenergy projects—such as subsidies and tax breaks—can enhance the
feasibility of these initiatives. Companies should engage with local
authorities to understand available incentives and explore public-private
partnerships to alleviate financial burdens associated with
bioenergy-driven hydrogen investments.
- Focusing on Sustainable Biomass Sourcing : Sustainable sourcing of
biomass is critical to prevent negative environmental impacts, such as
deforestation. Companies need to develop a sustainable sourcing policy
that prioritizes waste materials and agricultural residues.
- Communicating and Reporting Progress
Transparently :
Transparent communication and reporting are essential to avoid
greenwashing. Companies should provide accurate, data-driven insights into
how bioenergy-driven hydrogen supports their ESG goals.
Conclusion
Integrating bioenergy-driven green hydrogen into
our energy systems offers a transformative opportunity to enhance
sustainability and combat climate change. This approach significantly reduces
carbon emissions and contributes to achieving climate goals through negative
emissions—where the carbon dioxide removed from the atmosphere exceeds
the emissions produced. This process is critical for companies aiming to
enhance their ESG value by aligning their operations with the global commitment
to net-zero emissions.
Moreover, the production of bioenergy-driven
hydrogen directly supports the “E” in ESG by enabling companies to demonstrate
measurable progress in carbon reduction. This proactive stance on emissions can
improve corporate reputation, attract impact-driven investors, and meet the
growing demand for sustainable practices in the marketplace.Additionally, the
social benefits of bioenergy-driven hydrogen, particularly in rural areas,
emphasize job creation and economic development.
As we move toward a sustainable energy future, this
is a vital solution that addresses environmental challenges while delivering
substantial ESG value. Embracing this integrated approach will not only support
corporate sustainability goals but also foster a cleaner, more equitable world
for all, reinforcing the role of businesses in driving positive change in
society.
Reference
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