
India and Saudi Arabia will be inking a comprehensive energy partnership following talks between Prime Minister Narendra Modi and Saudi Arabian Crown Prince Mohammed bin Salman, Monday, sources have told Business Today.
The development comes at a time when India – the world’s third-largest oil importer after China and the US – is looking to also become a net exporter of new and renewable energy through a gradual reduction of its own dependency on fossil fuels.
Crown Prince Salman set the tone for the agreement in his address announcing the India-Middle East-Europe Economic Corridor (IMEC), Saturday.
“It will also extend pipelines for the export and import of electricity and hydrogen to enhance global energy supply security, in addition to high-efficiency, reliable cross-border data transmission cables,” he said.
India has targeted to achieve 5 million tonnes (MT) of green hydrogen capacity annually, along with an additional 125 GW of renewable energy capacity by 2030 under the National Green Hydrogen Mission announced in August 2021.
“India has the potential to become a global energy supplier like Saudi Arabia or the US with green hydrogen,” Ahmad Chatila, Promoter of the US-based venture capital firm Fenice Investment Group (FIG), told BT during an earlier interaction.
Other than green hydrogen, India is also looking at having 500 GW of renewable energy capacity by the end of the current decade.
Enhanced new energy portfolio
And just like the world’s fifth-largest economy has been diversifying oil & gas imports to reduce dependence on principal oil producers in West Asia to reduce price volatility, it is also aiming at expanding its portfolio in new and renewable energy.
Saudi Arabia was India’s third-largest source of crude and petroleum products in FY23.
On the first day of the G20 Summit, India also announced the formation of the Global Biofuels Alliance.
“The launch of the Global Biofuels Alliance marks a significant milestone in our pursuit of sustainability and clean energy,” said Modi.
This would mean an enhanced recycling of agriculture and forest residue, Municipal Solid Waste (MSW), cow dung etc., for conversion to biofuels such as ethanol and ammonia.
India, which has chosen to undertake the largest exercise in energy transition globally, has set an ambitious target of bringing down greenhouse gas (GHG) emissions to zero by 2070.
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