{"id":147723,"date":"2024-12-19T20:17:59","date_gmt":"2024-12-19T14:47:59","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=147723"},"modified":"2025-02-13T15:58:18","modified_gmt":"2025-02-13T10:28:18","slug":"green-hydrogen-and-the-financing-challenge","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/green-hydrogen-and-the-financing-challenge","title":{"rendered":"Green Hydrogen and the Financing Challenge"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">India targets<\/span><b> 5 million metric tonnes (MMT) of green hydrogen <\/b><span style=\"font-weight: 400;\">production <\/span><b>annually by 2030<\/b><span style=\"font-weight: 400;\"> to decarbonize industries and achieve <\/span><b>net-zero emissions by 2070<\/b><span style=\"font-weight: 400;\">, but <\/span><b>financing challenges<\/b><span style=\"font-weight: 400;\"> pose significant hurdles.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Based on a recent analysis by <\/span><b>BloombergNEF,<\/b><span style=\"font-weight: 400;\"> India is on track to meet <\/span><b>only 10% of its stated goal.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>High Production Costs:<\/b><span style=\"font-weight: 400;\"> Green hydrogen costs $5.30\u2013$6.70\/kg, significantly <\/span><b>higher than grey\/blue hydrogen<\/b><span style=\"font-weight: 400;\"> ($1.90\u2013$2.40\/kg).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Market Deadlock:<\/b><span style=\"font-weight: 400;\"> Green hydrogen prices <\/span><b>can drop with scaled production<\/b><span style=\"font-weight: 400;\">, but scaling <\/span><b>requires viable economics<\/b><span style=\"font-weight: 400;\"> and reduced costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7979%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>About Green Hydrogen<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The Ministry of New and Renewable Energy (MNRE) has defined green hydrogen as hydrogen produced <\/span><b>to emit no more than 2 kg of carbon dioxide per kg of such hydrogen.\u00a0<\/b><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Currently, producing<\/span><b> 1 kg of \u2018grey hydrogen,<\/b><span style=\"font-weight: 400;\">\u2019 as it is known, emits <\/span><b>9 kg of carbon dioxide.<\/b><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>How is Green Hydrogen Produced?<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Green hydrogen production relies on electrolysis, a process in which water (H\u2082O) is <\/span><b>split into hydrogen (H\u2082) and oxygen (O\u2082)<\/b><span style=\"font-weight: 400;\"> by applying an <\/span><b>electric current <\/b><span style=\"font-weight: 400;\">through an electrolyzer using renewable energy, while grey hydrogen requires carbon combustion.<\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Key factors in its production include:<\/b><\/span><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Electrolyzers: <\/b><span style=\"font-weight: 400;\">Devices that split water molecules into hydrogen and oxygen.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Renewable Energy Sources:<\/b><span style=\"font-weight: 400;\"> Solar, wind, and hydropower provide the necessary electricity for electrolysis, ensuring zero carbon emissions.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Water Resources:<\/b><span style=\"font-weight: 400;\"> Sufficient water supply is required, as one ton of hydrogen production needs approximately nine tons of water.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-147472\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/181-6762c2f042f2a.webp\" alt=\"Green Hydrogen\" width=\"751\" height=\"230\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/181-6762c2f042f2a.webp 1461w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/181-6762c2f042f2a-300x92.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/181-6762c2f042f2a-1024x313.webp 1024w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/12\/181-6762c2f042f2a-768x235.webp 768w\" sizes=\"(max-width: 751px) 100vw, 751px\" \/><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Significance of Green Hydrogen<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Zero Carbon Emissions<\/b><span style=\"font-weight: 400;\">: Green hydrogen is produced using renewable energy sources, emitting <\/span><b>only water vapor<\/b><span style=\"font-weight: 400;\"> as a byproduct, unlike fossil fuels that release large amounts of CO\u2082.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example:<\/b><span style=\"font-weight: 400;\"> Replacing 1 kg of grey hydrogen (emits <\/span><b>9 kg CO\u2082<\/b><span style=\"font-weight: 400;\">) with green hydrogen can reduce significant carbon emissions in sectors like refining and ammonia production.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Versatility Across Sectors<\/b><span style=\"font-weight: 400;\">: Green hydrogen can replace fossil fuels in <\/span><b>hard-to-abate sectors<\/b><span style=\"font-weight: 400;\"> like steel, cement, fertilizers, shipping, and aviation.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example: <\/b><span style=\"font-weight: 400;\">The steel industry, a major fossil fuel consumer, can adopt green hydrogen to produce <\/span><b>green steel<\/b><span style=\"font-weight: 400;\">, reducing emissions by up to <\/span><b>90%<\/b><span style=\"font-weight: 400;\"> compared to traditional methods.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Use in Agricultural Sector<\/b><span style=\"font-weight: 400;\">: Green hydrogen can <\/span><b>decarbonize the agriculture sector<\/b><span style=\"font-weight: 400;\"> by replacing <\/span><b>natural gas-derived grey hydrogen<\/b><span style=\"font-weight: 400;\"> in <\/span><b>fertilizer production<\/b><span style=\"font-weight: 400;\">, reducing carbon emissions significantly.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">:\u00a0 Green hydrogen can <\/span><b>produce ammonia,<\/b><span style=\"font-weight: 400;\"> a key fertilizer component, while ensuring sustainability and reducing dependency on fossil fuels.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Energy Independence and Security<\/b><span style=\"font-weight: 400;\">: Reduces reliance on imported fossil fuels, enhancing energy security for countries with abundant renewable resources.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: India, with an annual energy import bill of <\/span><b>$185 billion<\/b><span style=\"font-weight: 400;\">, aims to save <\/span><b>\u20b91 lakh crore by 2030<\/b><span style=\"font-weight: 400;\"> through green hydrogen adoption under the <\/span><b>National Green Hydrogen Mission.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sustainable Transport Solutions<\/b><span style=\"font-weight: 400;\">: Green hydrogen powers <\/span><b>fuel cells<\/b><span style=\"font-weight: 400;\"> in heavy-duty vehicles, ships, and trains, providing a clean alternative to diesel and natural gas.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: <\/span><b>Japan\u2019s development of hydrogen-powered trains<\/b><span style=\"font-weight: 400;\"> and India\u2019s pilot <\/span><b>hydrogen-fueled buses<\/b><span style=\"font-weight: 400;\"> by NTPC in Leh and Noida.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term Energy Storage<\/b><span style=\"font-weight: 400;\">: Hydrogen allows <\/span><b>renewable energy storage for long durations,<\/b><span style=\"font-weight: 400;\"> overcoming the intermittency of <\/span><b>solar and wind power,<\/b><span style=\"font-weight: 400;\"> unlike fossil fuels that are finite.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example:<\/b><span style=\"font-weight: 400;\"> Hydrogen storage solutions are being tested to <\/span><b>stabilize grids in Europe and the U.S.<\/b><span style=\"font-weight: 400;\">, ensuring reliable energy during high demand periods.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Potential for Global Trade and Export<\/b><span style=\"font-weight: 400;\">: Countries with <\/span><b>renewable energy surplus <\/b><span style=\"font-weight: 400;\">can produce green hydrogen for <\/span><b>export<\/b><span style=\"font-weight: 400;\">, creating economic opportunities and <\/span><b>reducing global dependence<\/b><span style=\"font-weight: 400;\"> on fossil fuels.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example:<\/b> <b>Australia-Japan\u2019s Hydrogen Energy Supply Chain project<\/b><span style=\"font-weight: 400;\"> aims to export green hydrogen to meet Japan\u2019s decarbonization targets.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Green Hydrogen vs. Fossil Fuels<\/b><\/span><\/h2>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6975%;\">\n<tbody>\n<tr>\n<td style=\"width: 18.0723%; text-align: center;\"><b>Feature<\/b><\/td>\n<td style=\"width: 22.0884%; text-align: center;\"><b>Green Hydrogen<\/b><\/td>\n<td style=\"width: 15.4618%; text-align: center;\"><b>Coal<\/b><\/td>\n<td style=\"width: 22.992%; text-align: center;\"><b>Natural Gas<\/b><\/td>\n<td style=\"width: 20.9871%; text-align: center;\"><b>Petroleum Products<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 18.0723%;\"><b>Production<\/b><\/td>\n<td style=\"width: 22.0884%;\"><b>Electrolysis<\/b><span style=\"font-weight: 400;\"> of water using renewable energy<\/span><\/td>\n<td style=\"width: 15.4618%;\"><b>Mining<\/b><\/td>\n<td style=\"width: 22.992%;\"><span style=\"font-weight: 400;\">Extraction from natural <\/span><b>gas fields<\/b><\/td>\n<td style=\"width: 20.9871%;\"><span style=\"font-weight: 400;\">Oil <\/span><b>drilling and refining<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 18.0723%;\"><b>Environmental Impact<\/b><\/td>\n<td style=\"width: 22.0884%;\"><b>Zero carbon emissions<\/b><span style=\"font-weight: 400;\"> during production<\/span><\/td>\n<td style=\"width: 15.4618%;\"><b>High<\/b><span style=\"font-weight: 400;\"> carbon emissions<\/span><\/td>\n<td style=\"width: 22.992%;\"><b>Moderate<\/b><span style=\"font-weight: 400;\"> carbon emissions<\/span><\/td>\n<td style=\"width: 20.9871%;\"><b>High<\/b><span style=\"font-weight: 400;\"> carbon emissions<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 18.0723%;\"><b>Cost<\/b><\/td>\n<td style=\"width: 22.0884%;\"><span style=\"font-weight: 400;\">Currently more <\/span><b>expensive<\/b><span style=\"font-weight: 400;\"> than other fuels<\/span><\/td>\n<td style=\"width: 15.4618%;\"><span style=\"font-weight: 400;\">Relatively <\/span><b>inexpensive<\/b><\/td>\n<td style=\"width: 22.992%;\"><span style=\"font-weight: 400;\">More <\/span><b>expensive than coal<\/b><span style=\"font-weight: 400;\">, but cheaper than green hydrogen<\/span><\/td>\n<td style=\"width: 20.9871%;\"><span style=\"font-weight: 400;\">More<\/span><b> expensive than coal and natural gas<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 18.0723%;\"><b>Energy Density<\/b><\/td>\n<td style=\"width: 22.0884%;\"><b>High<\/b><\/td>\n<td style=\"width: 15.4618%;\"><b>Low<\/b><\/td>\n<td style=\"width: 22.992%;\"><b>Medium<\/b><\/td>\n<td style=\"width: 20.9871%;\"><b>High<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 18.0723%;\"><b>Storage and Transportation<\/b><\/td>\n<td style=\"width: 22.0884%;\"><span style=\"font-weight: 400;\">Can be stored and transported in various ways, including <\/span><b>pipelines and tanks<\/b><\/td>\n<td style=\"width: 15.4618%;\"><span style=\"font-weight: 400;\">Can be stored in <\/span><b>stockpiles<\/b><\/td>\n<td style=\"width: 22.992%;\"><span style=\"font-weight: 400;\">Can be stored in <\/span><b>underground reservoirs <\/b><span style=\"font-weight: 400;\">and transported via <\/span><b>pipelines<\/b><\/td>\n<td style=\"width: 20.9871%;\"><span style=\"font-weight: 400;\">Can be stored in <\/span><b>tanks<\/b><span style=\"font-weight: 400;\"> and transported via <\/span><b>pipelines and tankers<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>India\u2019s Potential for Green Hydrogen Production<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Abundant Renewable Energy Resources<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>India&#8217;s solar energy potential<\/b><span style=\"font-weight: 400;\">: 748 GW (gigawatts) at full capacity; current installed solar capacity stands at <\/span><b>73.32 GW<\/b><span style=\"font-weight: 400;\"> (December 2023).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Wind energy potential<\/b><span style=\"font-weight: 400;\">: Significant untapped resources in states like <\/span><b>Tamil Nadu, Gujarat, and Maharashtra.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Gujarat\u2019s RE projects<\/b><span style=\"font-weight: 400;\"> linked to green hydrogen hubs; <\/span><b>Rajasthan\u2019s solar potential<\/b><span style=\"font-weight: 400;\"> for electrolyzer-driven hydrogen production.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Favorable Geographic Conditions<\/b><span style=\"font-weight: 400;\">: Vast land availability in states like Rajasthan and Gujarat for renewable energy parks.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Bhadla Solar Park in Rajasthan,<\/b><span style=\"font-weight: 400;\"> a prime renewable energy hub, could support green hydrogen production.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High Domestic Demand for Hydrogen<\/b><span style=\"font-weight: 400;\">: India currently produces <\/span><b>6.5 million metric tonnes (MMT)<\/b><span style=\"font-weight: 400;\"> of hydrogen annually, mostly grey hydrogen, for industries like fertilizers, refining, and steel.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Green hydrogen can replace grey hydrogen in these sectors, reducing <\/span><b>50 MMT of CO\u2082 emissions annually<\/b><span style=\"font-weight: 400;\"> by 2030.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>NTPC and Oil India blending green hydrogen in PNG<\/b><span style=\"font-weight: 400;\"> and fuel networks in Gujarat and Madhya Pradesh.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost-Competitive Production Potential<\/b><span style=\"font-weight: 400;\">: By leveraging economies of scale and declining renewable energy costs, India aims to reduce green hydrogen production costs to <\/span><b>$1 per kg by 2030<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Solar Energy Corporation of India (SECI) <\/b><span style=\"font-weight: 400;\">has achieved <\/span><b>low renewable electricity tariffs <\/b><span style=\"font-weight: 400;\">at INR 2.6\/kWh, which is crucial for affordable green hydrogen.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Policy Support and Investments<\/b><span style=\"font-weight: 400;\">: <\/span><b>National Green Hydrogen Mission<\/b><span style=\"font-weight: 400;\">: \u20b919,744 crore outlay to establish India as a global hub for green hydrogen.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Target: <\/span><b>5 MMT annual green hydrogen production<\/b><span style=\"font-weight: 400;\"> and 125 GW renewable energy capacity by 2030.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Adani Group is investing $9 billion<\/b><span style=\"font-weight: 400;\"> in the first phase of its green hydrogen venture in Gujarat&#8217;s Kutch district.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strategic Location for Exports<\/b><span style=\"font-weight: 400;\">: Proximity to key hydrogen-importing countries like Japan, South Korea, and Europe.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ongoing trade discussions for green hydrogen exports under partnerships like the <\/span><b>India Hydrogen Alliance (IH2A)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Potential forex savings of <\/span><b>\u20b91 lakh crore<\/b><span style=\"font-weight: 400;\"> by reducing fossil fuel imports and earning from exports.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technological and Industrial Ecosystem<\/b><span style=\"font-weight: 400;\">: Growing electrolyzer manufacturing capacity with initiatives like the <\/span><b>SIGHT programme<\/b><span style=\"font-weight: 400;\"> under the Green Hydrogen Mission.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pilot projects in <\/span><b>mobility and steel sectors <\/b><span style=\"font-weight: 400;\">showcasing feasibility.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Green steel pilot project in Odisha<\/b><span style=\"font-weight: 400;\"> leveraging green hydrogen to decarbonize steel production.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Challenges to Green Hydrogen Production<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High Cost of Producing Green Hydrogen:<\/b><span style=\"font-weight: 400;\"> The cost of producing green hydrogen depends on two critical factors which make the production of green hydrogen expensive:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Levelised Cost of Electricity (LCOE):<\/b><span style=\"font-weight: 400;\"> It is the average cost of generating renewable electricity over a project\u2019s lifetime.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">A <\/span><b>higher LCOE directly increases green hydrogen production costs<\/b><span style=\"font-weight: 400;\">, as renewable electricity is the primary input for its production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Currently, there is a substantial <\/span><b>disparity between green hydrogen production costs ($5.30\u2013$6.70 per kg) and traditional grey\/blue hydrogen production costs <\/b><span style=\"font-weight: 400;\">($1.90\u2013$2.40 per kg).\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Electrolyzer Costs<\/b><span style=\"font-weight: 400;\">: Electrolyzers are devices used to <\/span><b>split water into hydrogen and oxygen through electrolysis.\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">These systems rely on advanced technology, but due to<\/span><b> relatively low demand, the cost of electrolyzers remains high.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Alkaline electrolyzers cost <\/b><span style=\"font-weight: 400;\">approximately $500\u2013$1,400 per kilowatt (kW).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Proton Exchange Membrane (PEM) systems<\/b><span style=\"font-weight: 400;\"> are even more expensive, ranging from $1,100 to $1,800 per kW.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High Borrowing Costs: <\/b><span style=\"font-weight: 400;\">The cost of capital, particularly in developing markets like India, is often high.\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This issue arises because such investments are perceived as <\/span><b>riskier due to uncertainties surrounding demand.\u00a0\u00a0\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This perception leads to <\/span><b>higher borrowing costs<\/b><span style=\"font-weight: 400;\">, reflected in an increased<\/span><b> weighted average cost of capital (WACC).<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Studies show that a rise in WACC <\/span><b>from 10% to 20% <\/b><span style=\"font-weight: 400;\">can increase the<\/span><b> cost of hydrogen by up to 73%.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Since investment costs contribute 50\u201380% of the LCOE in renewable energy projects, even a small increase in WACC can significantly drive up production costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Infrastructure Limitations<\/b><span style=\"font-weight: 400;\">: Lack of pipelines, storage facilities, and hydrogen refueling stations for transport and industrial use.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Currently, India has <\/span><b>only a couple of operational hydrogen filling stations<\/b><span style=\"font-weight: 400;\">, in Faridabad and Gurugram, insufficient for scaling adoption.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Energy and Water Demand<\/b><span style=\"font-weight: 400;\">: Electrolyzers consume <\/span><b>9 liters of water per kg of hydrogen<\/b><span style=\"font-weight: 400;\">, creating challenges in water-scarce regions.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Dependence on freshwater resources limits scalability, making seawater electrolysis an underdeveloped alternative.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Storage and Transportation Challenges<\/b><span style=\"font-weight: 400;\">: Hydrogen is <\/span><b>highly flammable<\/b><span style=\"font-weight: 400;\"> and requires high-pressure tanks or <\/span><b>cryogenic temperatures<\/b><span style=\"font-weight: 400;\"> for storage and transport.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Liquid hydrogen storage<\/b><span style=\"font-weight: 400;\"> requires temperatures below <\/span><b>\u2212252.8\u00b0C<\/b><span style=\"font-weight: 400;\">, which involves expensive cryogenic infrastructure.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of Standardization and Certification<\/b><span style=\"font-weight: 400;\">: Absence of harmonized global standards for hydrogen production, carbon intensity, and safety protocols.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Divergent definitions of \u201cgreen hydrogen\u201d<\/b><span style=\"font-weight: 400;\"> allow biomass-based hydrogen, which still emits some carbon, to qualify.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dependence on Fossil Fuels in Energy Grid<\/b><span style=\"font-weight: 400;\">: Risk of using coal-dominated grids for electrolyzer operation when renewable energy is unavailable (e.g., at night).<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India\u2019s grid relies on <\/span><b>70% coal-based electricity<\/b><span style=\"font-weight: 400;\">, which undermines the carbon neutrality of green hydrogen projects.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Nascent Technology and Workforce Skills<\/b><span style=\"font-weight: 400;\">: Need for R&#038;D in efficient, low-cost electrolyzers and non-freshwater-based production methods.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Workforce skill gap in hydrogen production, storage, and infrastructure development.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>ministry of skill development and education (MSDE)<\/b><span style=\"font-weight: 400;\"> estimates a demand for <\/span><b>2.83 lakh jobs in production and storag<\/b><span style=\"font-weight: 400;\">e, along with <\/span><b>11,000 roles in electrolyser manufacturing<\/b><span style=\"font-weight: 400;\"> by 2030 for green hydrogen production units.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Competing Renewable Energy Needs<\/b><span style=\"font-weight: 400;\">: Diversion of renewable energy from grid decarbonization to green hydrogen production could slow progress toward overall energy transition goals.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India\u2019s 2030 green hydrogen plan requires <\/span><b>125 GW of additional RE capacity<\/b><span style=\"font-weight: 400;\">, over and above the 500 GW target under the Paris Agreement.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Government Initiatives for Green Hydrogen Production in India<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National Green Hydrogen Mission (2023)<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Make India a global hub for green hydrogen production, use, and export.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Key Targets<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>5 MMT annual green hydrogen production by 2030<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Add <\/span><b>125 GW renewable energy capacity<\/b><span style=\"font-weight: 400;\"> for hydrogen production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Save <\/span><b>\u20b91 lakh crore in fossil fuel imports<\/b><span style=\"font-weight: 400;\"> and reduce <\/span><b>50 MMT CO\u2082 emissions annually<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Sub Schemes under the NGHM:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Strategic Interventions for Green Hydrogen Transition Programme (SIGHT)<\/b><span style=\"font-weight: 400;\">: It aims to support <\/span><b>4GW of domestic electrolyser manufacturing capacity<\/b><span style=\"font-weight: 400;\"> and assist production of<\/span><b> 1 million tonnes of green hydrogen by 2030.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Green Hydrogen Hubs:<\/b><span style=\"font-weight: 400;\"> States and regions capable of supporting large scale production and\/or utilization of hydrogen will be identified and developed as Green Hydrogen Hubs.<\/span>\n<ul style=\"list-style-type: disc;\">\n<li style=\"font-weight: 400;\" aria-level=\"4\"><span style=\"font-weight: 400;\">Green hydrogen projects planned in <\/span><b>Gujarat, Odisha, and Tamil Nadu.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Green Hydrogen Policy (2022)<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Waiver of <\/span><b>interstate transmission charges<\/b><span style=\"font-weight: 400;\"> for 25 years for projects commissioned by <\/span><b>December 31, 2030<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Open access policy<\/b><span style=\"font-weight: 400;\">: Ensures availability of renewable energy for hydrogen production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Land Allocation<\/b><span style=\"font-weight: 400;\">: Support for establishing renewable energy parks.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pilot Projects<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Mobility and Industry<\/b><span style=\"font-weight: 400;\">: Hydrogen buses in Leh and Noida; green steel initiatives in Odisha.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Budget allocation of <\/span><b>\u20b91,466 crore<\/b><span style=\"font-weight: 400;\"> for pilot projects, including mobility and shipping.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exemption of Taxes and Duties<\/b><span style=\"font-weight: 400;\">: Special provisions for green hydrogen projects located in <\/span><b>Special Economic Zones (SEZs)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022:<\/b><span style=\"font-weight: 400;\"> These facilitate <\/span><b>renewable energy supply<\/b><span style=\"font-weight: 400;\"> through open access for green hydrogen production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>ISTS <\/b><b>waiver of Green Hydrogen: <\/b><span style=\"font-weight: 400;\">The government has exempted<\/span><b> inter-state transmission charges<\/b><span style=\"font-weight: 400;\"> for <\/span><b>25 years<\/b><span style=\"font-weight: 400;\"> for producers of green hydrogen and green ammonia for projects commissioned <\/span><b>before December 31, 2030.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Research and Development (R&#038;D)<\/b><span style=\"font-weight: 400;\">: <\/span><b>\u20b9400 crore<\/b><span style=\"font-weight: 400;\"> allocated for R&#038;D under the National Green Hydrogen Mission.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Focus on <\/span><b>indigenous electrolyzer technology and non-freshwater-based hydrogen <\/b><span style=\"font-weight: 400;\">production methods.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Production-Linked Incentive (PLI) Scheme<\/b><span style=\"font-weight: 400;\">: Incentives for manufacturing green hydrogen equipment like electrolyzers under the government\u2019s broader PLI framework.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>International Collaborations<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Partnerships with countries like Japan, Germany, and Australia for technology transfer, trade agreements, and joint projects.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example:<\/b><span style=\"font-weight: 400;\"> Cooperation agreements with Japan for green hydrogen trade and supply chain development.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.498%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Global Strategies for Green Hydrogen Financing and Production<\/b><\/span><\/h2>\n<p><span style=\"color: #000000;\"><b>Incentive-Based Financing Models<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>U.S. Inflation Reduction Act (IRA)<\/b><span style=\"font-weight: 400;\">: Offers <\/span><b>tax credits up to $3\/kg<\/b><span style=\"font-weight: 400;\"> for green hydrogen production. Provides long-term certainty for investors and accelerates deployment of electrolyzers and renewable energy projects.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Development of Hydrogen Hubs<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Australia\u2019s Hydrogen Energy Supply Chain (HESC)<\/b><span style=\"font-weight: 400;\">: Establishes hydrogen hubs connected to renewable energy sources. Focus on export-oriented production to Japan.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>International Partnerships and Trade Agreements<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>EU Hydrogen Alliance<\/b><span style=\"font-weight: 400;\">: Aims to produce 10 million tonnes of green hydrogen annually by 2030 and import 10 million tonnes. Focus on standardizing <\/span><b>green hydrogen certification<\/b><span style=\"font-weight: 400;\"> for global trade.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Blended and Innovative Financing Mechanisms<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>EU Innovation Fund<\/b><span style=\"font-weight: 400;\">: Supports green hydrogen projects through grants and co-financing. Prioritizes scaling innovative technologies in hydrogen production.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Equipment Leasing Models<\/b><span style=\"font-weight: 400;\">: Europe uses leasing mechanisms for electrolyzers to reduce capital expenditure. Shifts upfront costs into manageable operational expenses.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><b>Carbon Pricing and Penalty Mechanisms<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>EU Emissions Trading System (ETS)<\/b><span style=\"font-weight: 400;\">: Penalizes carbon-intensive industries and encourages green hydrogen adoption through carbon pricing mechanisms.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<h2><span style=\"font-size: 18pt;\"><b>Way Forward for Green Hydrogen in India<\/b><\/span><\/h2>\n<ul>\n<li><b>Comprehensive Policy Framework<\/b><span style=\"font-weight: 400;\">: Develop a comprehensive policy framework extending beyond production incentives to <\/span><b>address financing barriers.<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Introduce<\/span><b> long-term hydrogen purchase agreements <\/b><span style=\"font-weight: 400;\">and partial loan guarantees to <\/span><b>reduce investor uncertainty.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Establish <\/span><b>\u201cregulatory sandboxes\u201d<\/b><span style=\"font-weight: 400;\"> to experiment with new business models safely and efficiently, drawing from fintech innovations.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.498%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>What is a Regulatory Sandbox (RS)?<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It\u00a0 refers to a <\/span><b>live testing environment where new products, services, processes, and business models may be deployed, on a limited set of users, for a specified period of time, with certain relaxations<\/b><span style=\"font-weight: 400;\"> as per\u00a0 the provisions of the Telecommunication Act 2023.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Purpose: <\/b><span style=\"font-weight: 400;\">The sandbox <\/span><b>allows the regulator, the innovators, the service providers and the customers to conduct field tests and collect evidence<\/b><span style=\"font-weight: 400;\"> on the benefits and risks of new product innovations, while carefully monitoring and containing their risks.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<ul>\n<li><b>Innovative Financing Mechanisms: <\/b><span style=\"font-weight: 400;\">Indian banks should adopt <\/span><b>non-traditional financing structures <\/b><span style=\"font-weight: 400;\">tailored to hydrogen\u2019s unique challenges, such as uncertain demand and long project timelines.<\/span>\n<ul>\n<li><b>Modular project financing <\/b><span style=\"font-weight: 400;\">could allow phased scaling of facilities, reducing upfront capital requirements.<\/span><\/li>\n<li><b>\u201cAnchor-plus\u201d financing models<\/b><span style=\"font-weight: 400;\"> can secure base capacity investments from industrial customers, with flexible instruments financing additional capacity.<\/span><\/li>\n<li><b>Equipment leasing for electrolyzers<\/b><span style=\"font-weight: 400;\"> can transform prohibitive upfront costs into manageable operational expenses, replicating the success of solar and wind sectors.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Focus on Pilot Projects and Cost-Effective Business Models: <\/b><span style=\"font-weight: 400;\">Launch early projects in industrial hubs that integrate financial structuring and demonstrate cost-viable business models.<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Emphasize delivering <\/span><b>green hydrogen at competitive prices <\/b><span style=\"font-weight: 400;\">for industries like steel and ammonia production.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Infrastructure Development<\/b><span style=\"font-weight: 400;\">: Establish <\/span><b>hydrogen hubs with integrated production, storage, and distribution <\/b><span style=\"font-weight: 400;\">systems.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Develop <\/span><b>pipelines, refueling stations<\/b><span style=\"font-weight: 400;\">, and other logistics to facilitate large-scale adoption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Establish localised industrial clusters in states like <\/span><b>Odisha, Maharashtra, and Gujarat<\/b><span style=\"font-weight: 400;\"> to promote regional self-sustaining hydrogen corridors.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promote R&#038;D and Skill Development<\/b><span style=\"font-weight: 400;\">: Invest in <\/span><b>indigenous technologies<\/b><span style=\"font-weight: 400;\"> for electrolyzers and alternative hydrogen production methods.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Launch <\/span><b>training programs <\/b><span style=\"font-weight: 400;\">to build a skilled workforce for hydrogen production and infrastructure management.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Encourage International Collaboration<\/b><span style=\"font-weight: 400;\">: Forge partnerships with key importing countries like Japan and the EU for technology transfer, market access, and export facilitation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Carbon Pricing and Disincentives for Fossil Fuels<\/b><span style=\"font-weight: 400;\">: Introduce carbon pricing mechanisms to make green hydrogen competitive and phase out grey hydrogen in industrial sectors.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Green hydrogen is a transformative solution to achieve India\u2019s net-zero targets, decarbonize industries, and ensure energy independence. By addressing cost barriers, enhancing infrastructure, and leveraging global collaborations, India can emerge as a leader in the global green hydrogen economy.<\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Current Affairs Quiz<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Main Answer Writing<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-previous-year-papers?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Previous+Year+Papers\" target=\"_blank\" rel=\"noopener\"><b>Check Out Previous Years Papers From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Test Series<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC NCERT Textbooks From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-modules?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Modules\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC Modules From PW Store<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>India targets 5 million metric tonnes (MMT) of green hydrogen production annually by 2030 to decarbonize industries and achieve net-zero emissions by 2070, but financing challenges pose significant hurdles.<\/p>\n","protected":false},"author":11,"featured_media":147657,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2100],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147723"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=147723"}],"version-history":[{"count":2,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147723\/revisions"}],"predecessor-version":[{"id":147725,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147723\/revisions\/147725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/147657"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=147723"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=147723"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=147723"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=147723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}