India, the third largest emitter of greenhouse gases, is planning an expansion of its oil and gas sectors, even as it aims to reach net zero by 2070.
The nation intends to increase oil refining volumes to 450 million tonnes a year by the end of the decade, from about 250 million tonnes, and will also increase liquefied natural gas import capacity, it said on Monday Prime Minister Narendra Modi.
“Energy is an important factor in fulfilling the aspirations of Indians,” Modi said, opening a three-day energy forum in Bengaluru that will bring together 30,000 delegates, including officials and executives from Saudi Arabia, Russia, the U.S. and China. “From industries to offices, factories to homes, India’s energy demand continues to rise.”
India currently holds the G20 presidency and intends to focus on energy security and access to electricity in the developing world along with efforts to curb greenhouse gas emissions. The nation last week defended its continued reliance on coal, pointing to moves by some European nations last year to increase consumption of the fuel as they shunned Russian gas.
Natural gas is expected to account for 15% of India’s electricity generation by 2030 from 6% today, while the country’s share of global oil demand will ultimately double by 11%, Modi told the conference.
However, India will also aim to increase the share of non-fossil fuels in its energy mix to 50% by the end of the decade, focusing on strengthening local manufacturing capacity in solar, batteries and green hydrogen.
Investments in green hydrogen could add up to 1 trillion rupees ($12.1 billion) and production could reach 5 million tons by 2030. The fuel will be used to replace 25 percent of so-called gray hydrogen, created with natural gas or methane. , in 5 years, Modi said.
The government is already in talks with oil refineries and fertilizer plants to discuss how they could also adopt the new fuel.
“India’s commitment to green energy is visible to the world,” Modi said. “Today there is a mass movement in the energy transition. This is due to a rapid adoption of renewable energies.”
India has faced criticism for the slow pace of its climate action. Although 350 billion rupees were allocated in a federal budget last week for energy transition projects, the cost of achieving Modi’s net zero target could exceed $10 trillion, the Council calculated Energy, Environment and Water in a report last year.
Modi was scheduled to hold talks at the Bengaluru event with key energy sector executives as India seeks more investment in refineries, petrochemical plants and LNG terminals, along with developing its clean energy sector.
India will launch an international biofuels alliance with nations such as the US and Brazil to promote the use of the lower emission energy source. Modi also offered support for a new initiative to commercialize solar cookers, a move aimed at curbing the burning of biomass for food preparation.
