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Difficulty: MediumInference and Logical Deduction

Read the following passage carefully:

Under the National Clean Hydrogen Procurement Directive of 2025, state-owned power utilities are mandated to source at least 15% of their industrial hydrogen supply exclusively from certified green hydrogen producers starting in 2027. However, the directive explicitly stipulates that this mandatory procurement threshold applies only to utilities whose operational grid capacity exceeds 5,000 megawatts. Utilities operating below this capacity threshold are exempt from mandatory quota purchases but remain eligible for targeted state capital grants if they voluntarily transition to green hydrogen. Crucially, the directive defines 'certified green hydrogen' as hydrogen produced using renewable energy sources where the lifecycle carbon intensity does not exceed two kilograms of carbon dioxide equivalent per kilogram of hydrogen generated. Facilities using fossil fuel energy paired with carbon capture systems are categorized as blue hydrogen facilities and are strictly excluded from fulfilling the quota, regardless of their net emission reductions.

Based strictly on the passage provided, which of the following statements must logically be true?

  1. A state-owned power utility operating a grid capacity of 4,000 megawatts is not legally obligated under the directive to purchase green hydrogen.Answer
  2. B
    Blue hydrogen facilities will be shut down by state regulatory authorities for failing to meet clean energy standards.
  3. C
    All state-owned power utilities with grid capacities above 5,000 megawatts currently source their entire hydrogen supply from fossil fuels.
  4. D
    State capital grants for green hydrogen transition are restricted exclusively to utilities with grid capacities exceeding 5,000 megawatts.

Answer

A state-owned power utility operating a grid capacity of 4,000 megawatts is not legally obligated under the directive to purchase green hydrogen.
The correct option directly derives from the passage rule stating that mandatory procurement applies only to utilities exceeding 5,000 megawatts of operational grid capacity. A utility with a capacity of 4,000 megawatts is under this limit and is therefore explicitly exempt from mandatory purchasing obligations.

Step-by-Step Solution

1
Identify the conditional rule governing mandatory green hydrogen procurement.
The directive applies mandatory procurement quotas strictly to utilities whose operational grid capacity exceeds 5,000 megawatts.
Establishing the precise criteria for legal obligation set by the passage.
2
Evaluate the condition for a utility operating at 4,000 megawatts.
Since 4,000 megawatts is less than 5,000 megawatts, the utility does not meet the criteria for mandatory quota purchases.
Deductively applying the capacity threshold condition specified in the text.
3
Conclude the valid deduction.
The 4,000 megawatt utility is exempt from mandatory purchases, making the statement logically necessary.
Verifying that the conclusion relies strictly on explicit passage facts.

Key Concept

Inference and Logical Deduction
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Topics

Inference and Logical Deduction

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