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Green Hydrogen in India: A Comprehensive Roadmap for Adoption, Challenges & Initiatives

Green Hydrogen in India: A Comprehensive Roadmap for Adoption, Challenges & Initiatives

Context:

This editorial is based on the news “Green Hydrogen: Enabling Measures Roadmap for Adoption in India which was published in WEF. The Report, Green Hydrogen: Enabling Measures Roadmap for Adoption in India has been released by the World Economic Forum.

Accelerating Green Hydrogen Adoption: A Strategic Roadmap for India’s Energy Transition

  • The report  recommends public-private interventions in expediting the adoption of green hydrogen in India.
  • It provides pathways for establishing green hydrogen as a viable energy source in India.

Hydrogen Production in India: Current Status & Environmental Challenges

Green Hydrogen

  • Currently, India produces 6.5 million metric tonnes per annum (MMTPA) of hydrogen, predominantly for use in crude oil refineries and fertilizer production. 
  • Most of the country’s current hydrogen supply is grey hydrogen, produced using fossil fuels in a process that creates CO2 gas emissions.

Green Hydrogen: Definition, Production Methods, and Diverse Applications

  • The Ministry of New and Renewable Energy (MNRE) has defined green hydrogen as hydrogen produced to emit no more than 2 kg of carbon dioxide per kg of such hydrogen. 
    • Currently, producing 1 kg of ‘grey hydrogen,’ as it is known, emits 9 kg of carbon dioxide.
    • While Green hydrogen is produced by electrolysis splitting water molecules into hydrogen and oxygen through an electrolyzer using renewable energy, grey hydrogen requires carbon combustion.
  • Applications of Green Hydrogen: It is a key input in fertilizers and refineries, feedstock in the chemical industry to carry out various processes like ammonia production, transport, energy storage, power generation, etc.

Green Hydrogen Revolution: India’s Strategic Shift for Energy Security and Global Leadership

  • Increasing Energy Demand: India is currently the third-largest economy in the world in terms of energy needs, and the country’s demand for energy is set to surge further.
    •  As per the report, the demand is estimated to grow 35% by 2030.

Advantages of using hydrogen as a fuel: 

  • Hydrogen combined with air, produces energy and water vapor. 
  • It generates more energy per kg than other fuels.
  • Hydrogen acts as feedstock in the refining, fertilizer, and chemical industries, and is gradually replacing carbon as a feedstock in the iron and steel industry. 
  • Reducing Energy Import Cost: India’s energy import bill in 2022 was around $185 billion, which is likely to increase if the country continues to supply its growing energy demand through traditional methods. 
    • According to the MNRE, National Green Hydrogen Mission, India can reduce fossil fuel imports worth Rs 1 lakh crore by 2030.
  • Climate Goals and Emission Reduction: India commits to achieve net zero by 2070 at the United Nations Climate Change Conference in Glasgow (COP26), held in 2021. 
    • Green Hydrogen Green hydrogen can abate at least 50 MMTPA of greenhouse gases by 2030.
  • Enhancing Energy Security: Green hydrogen is critical to help meet India’s energy security needs while reducing emissions in hard-to-abate sectors on the path to net zero. 
    • India has the potential to produce 210 Mtpa (598 Mtoe) of hydrogen from solar and wind and meet 32% of Asia-Pacific’s (APAC’s) hydrogen demand.
  • Forex Earnings: According to the International Energy Agency,  there could be a global demand for about 180 million tons of hydrogen by 2030.
    • India may utilize this opportunity to transform itself from an energy importer to an energy provider and exporter.
  • Geopolitical Implications: 
    • Growing Global Significance: The growing importance of Hydrogen in the energy space is expected to influence the technological and geo-political trends worldwide. 
    • Renewable Energy Advantage: Countries with access to abundant low-cost renewable energy could become producers/exporters of green hydrogen. 
      • This can be witnessed from the signing of MoUs on hydrogen and its derivatives trade. Ex-Japan has signed a cooperation agreement with UAE for production, supply, and trade of green or blue H2/NH3.
  • Global Strategies: Many countries/regions around the world like the European Union, Singapore, South Korea, and Japan among others have announced their new strategies to import Green/Clean Hydrogen and its derivatives, thereby providing an opportunity for Indian producers.

Green Hydrogen Challenges in India: Production Barriers, Costs, and Infrastructure Hurdles

  • Utilisation of Grey Hydrogen: Most of the hydrogen capacity in India  is mainly produced using natural gas within refineries and fertiliser industries. 
  • Huge production Cost: The production costs of green hydrogen amount to roughly $4-5 per kilogram, equivalent to approximately double the price of grey hydrogen.  
    • The green hydrogen production costs is dependent upon the:
      • Round-the-clock renewable energy electricity costs, which account for approximately 50–70% of green hydrogen costs.
      • Electrolyser costs constitute 30–50% of total green hydrogen production costs.
  • Water Intensive Nature of Electrolysers:  Water consumption by electrolyzers is another issue that needs to be discussed. Electrolyzers consume about 9 liters of water to produce 1 kg of hydrogen. 
    • Thus, seawater electrolysis  may be helpful, it requires further development and research work.
  • Lack of Harmonised Standards and Codes: Since the industry is in a nascent stage in India, standards and codes for manufacture and safety for the entire chain of green hydrogen is required to be put in place.
    • India’s standards allow the use of biomass which also results in carbon emissions for the production of green hydrogen.
    • Moreover, diverting scarce renewable energy capacity towards the production of green hydrogen means inadequate clean electricity being made available for consumers.
  • Inadequate Hydrogen Infrastructure: The existing hydrogen infrastructure is insufficient to promote the larger acceptance of fuel cell vehicles. 
    • Currently, India has only two established hydrogen refueling stations at the Indian Oil R&D Center, Faridabad, and the National Institute of Solar Energy, Gurugram.

Initiatives for Green Hydrogen Production In India: Policies and Alliances Shaping the Future

  • National Green Hydrogen Mission (Jan 2023): The mission envisages the substitution of grey hydrogen with green hydrogen in industries such as fertilizer production, petroleum refining, steel, shipping etc. 
    • Aims: To achieve a green hydrogen production capacity of at least 5 MMT per annum and an additional renewable energy capacity of about 125 GW by 2030.
  • Green Hydrogen Policy, February 2022:  It has been framed to aid in the reduction in the landed costs of renewal power and to encourage the transition from fossil fuel to green hydrogen/green ammonia
  • Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme: It will provide financial incentives for domestic manufacturing of electrolyzers and green hydrogen production.
  • Exemption of Inter-State Transmission Charges: The government has exempted inter-state transmission charges for 25 years for producers of green hydrogen and green ammonia for projects commissioned before December 31, 2030. 
  • Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022: These facilitate renewable energy supply through open access for green hydrogen production.
  • India Hydrogen Alliance: The India H2 Alliance is an industry coalition of global and Indian companies committed to creating a hydrogen value chain and working towards a Net-Zero pathway.

Green Hydrogen in India: Navigating the Path to Sustainable Production and Adoption

  • Renewable Energy Capacity Addition: India’s renewable energy potential can support its goals for green hydrogen growth but needs rapid capacity addition.
    • The country’s solar energy potential is estimated at 748 gigawatts (GW) at full capacity.
    • However, currently, the total installed solar capacity in India stands at 72.31 GW as of November 2023, or 9% of its total potential.
  • Reducing the Cost of Producing Green Hydrogen: This includes 
    •  Renewable energy incentives and tariffs: For example, the Solar Energy Corporation of India (SECI) recently achieved a cost of INR 2.6 /kWh through standalone solar and wind tender tariffs while tenders for RTC renewable energy stand at INR 4–4.5 /kWh.
      • SECI is an organization that facilitates renewable energy capacity development under the Ministry of New and Renewable Energy.
    • Scale and Innovation in Electrolysers: This can be done by increasing direct subsidies for early adopters.
      • For example, the USA has announced, under the Inflation Reduction Act (IRA), a tax credit of up to $3/kg of hydrogen.
      • Supporting long capital investment cycles for technologies with long-term clarity on policies and incentives 
      • Encouraging the development and testing of indigenous electrolyser technology.
  • Disincentivize Carbon-Intensive Alternatives: Local, regional and national governments in India might consider diverting their current spending on fossil-fuel subsidies to projects supporting green hydrogen production and infrastructure-building.
    • For example, Europe has included green hydrogen under the Emissions Trading System.
  • Reduce or eliminate costs related to green hydrogen conversion, storage, and transport:
    • Energy Conversion: In the short to medium term, allow/encourage companies to form clusters and bid for PLIs/other incentive schemes.
    • Transports: Investing in long-term infrastructure construction, including pipelines for transporting green hydrogen throughout the country.
      • For example, the European Union’s European Hydrogen Backbone program aims to develop a pipeline network in the EU.
    • Storage: Storage accounts for roughly 30–40% of total RTC renewable energy costs. This can be reduced by interventions for energy storage systems throughout the country. .
  • Developing Harmonised Standards: Work with other countries/global organizations to develop harmonized global standards (and/or the ability to certify green hydrogen made in India according to importers’ norms).

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हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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