Introduction
India, a country with ambitious goals for economic development, energy security, and a low-carbon economy, is making significant strides in harnessing the potential of green hydrogen. Green hydrogen, produced using renewable electricity and water, has emerged as a clean energy vector to support India’s deep decarbonization strategy. It finds applications in decarbonizing hard-to-abate sectors, such as steel, chemicals, long-haul transport, shipping, and aviation. In this article, we will explore the potential of green hydrogen in rebalancing India’s energy portfolio and discuss the strategic importance, demand, and domains for development in the green hydrogen value chain.
The Growing Demand for Green Hydrogen in India
India’s demand for hydrogen has been steadily increasing, and in 2020, it accounted for approximately 8% of the global hydrogen demand. However, with the focus on renewable energy generation and decarbonization, the demand for green hydrogen is expected to rise significantly. By 2050, India’s hydrogen demand is predicted to increase more than fourfold, potentially accounting for close to 10% of the world’s hydrogen needs. Green hydrogen, with its decarbonizing potential, is expected to play a crucial role in meeting this growing demand.
The current demand for hydrogen in India primarily comes from sectors like fertilizers, chemicals, and refineries. However, as the country moves towards a green hydrogen-based economy, the demand is expected to expand into sectors such as power generation, energy storage, grid stability, heavy-duty transport, steel, and cement industries. The goal is to produce 5 million metric tons (MMT) per annum of green hydrogen by 2030, which could potentially abate around 50 MMT of annual CO2 emissions.
Strategic Importance of Green Hydrogen in India
The transition towards green hydrogen is of strategic importance to India’s larger goals for economic development, energy security, and a low-carbon economy. As the country rapidly adopts renewable energy sources and electrifies sectors like transport, there is a need to decarbonize industries like steel, ammonia, cement, and plastic, which currently rely heavily on fossil fuels. Green hydrogen offers a viable solution to decarbonize these hard-to-abate sectors, ensuring a real transition towards a low-carbon economy.
India’s renewable energy sector possesses significant potential for the production of green hydrogen. Unlike fossil fuels, green hydrogen can be produced anywhere with ample renewable potential, providing an opportunity for domestic production and reducing reliance on imports. This energy carrier can help India achieve energy independence, while also contributing to the country’s economic competitiveness.
Domains for Development in the Green Hydrogen Value Chain
The development of a robust green hydrogen value chain is crucial for India to leverage its renewable energy potential and become a global leader in this field. The value chain encompasses various stages, including production, storage, supply, research and development, export, component manufacturing, and domestic application.
To establish a strong foundation for the green hydrogen economy, India needs to focus on production and export. Research and development play a vital role in reducing the cost of green hydrogen and making it more competitive with grey hydrogen, which is produced using fossil fuels. The supply and transportation of green hydrogen also require significant attention to ensure its seamless integration into various sectors.
The development of component manufacturing, storage infrastructure, and domestic application should align with the growth of the Indian market for green hydrogen. It is essential to introduce the right policies and mandates to facilitate the uptake of green hydrogen and drive its adoption across industries.
Policy Making to Boost Green Hydrogen Development
The role of policy making is crucial in promoting the development and adoption of green hydrogen. Governments and stakeholders need to design policies that encourage sustainable hydrogen production while ensuring safety, affordability, and availability. Some key areas for consideration by policymakers include:
- Demand creation: Policies that favor demand creation can incentivize the early adoption of green hydrogen as a clean energy vector.
- Financial support: A policy framework based on a risk-sharing model can mitigate investment risks and support public-private partnerships for the rapid rollout of green hydrogen projects.
- Technology and scale of manufacturing: Policies promoting research and development, knowledge sharing, technology transfer, and collaboration can drive down the cost of green hydrogen and enhance competitiveness.
- International trade: Policies supporting international trade can help mitigate uncertainties in domestic demand and boost investor confidence. Harmonization of standards and the development of hydrogen hubs/valleys near ports can facilitate international trade.
- Harmonization of global standards and certification: Establishing globally accepted standards and certification systems is essential to ensure clean practices, promote international trade, and build confidence among consumers, developers, and investors.
- Skill development: To support the transition to green hydrogen, there is a need for skilled and unskilled workforce. Training programs, apprenticeships, and the introduction of new educational courses can help develop the necessary skills across the hydrogen ecosystem.
Latest Developments in India’s Green Hydrogen Economy
India has recognized the critical role of green hydrogen in its energy transition mission and has set ambitious goals for energy independence and net-zero emissions. The National Green Hydrogen Mission provides a comprehensive action plan for establishing a green hydrogen ecosystem in the country. The government has allocated significant financial resources to support the mission, with the aim of creating over six lakh jobs and reducing the energy import bill by over one lakh crore.
To achieve these goals, collaboration between industry, academia, and the government is crucial. Companies like Hydrogen Gentech Private Limited (HGPL) are playing a significant role in the development of green hydrogen technologies and applications in India. HGPL is focused on manufacturing and supplying hydrogen generation plants based on green hydrogen technologies, supporting the country’s efforts towards a sustainable and low-carbon future.
Conclusion
The harnessing of green hydrogen has the potential to revolutionize India’s energy portfolio and contribute to its goals of economic development, energy security, and a low-carbon economy. With its applications in decarbonizing hard-to-abate sectors and its role as a domestically produced energy carrier, green hydrogen can pave the way for a sustainable and independent energy future for India.
By focusing on the development of the green hydrogen value chain, implementing supportive policies, and fostering collaboration, India can position itself as a global leader in green hydrogen technologies. The transition towards green hydrogen represents a significant opportunity for India to reduce its carbon footprint, drive economic growth, and contribute to global efforts in combating climate change.