Context:
Recently, the World Economic Forum along with Bain & Company has released a report titled- Green Hydrogen: Enabling Measures Roadmap for Adoption in India, highlighting that Green Hydrogen production cost needs to be reduced to less than or equal to USD 2 per kg.
Relevance
GS III: Environment and Ecology
Dimensions of the Article:
- Key Highlights of the Report on India’s Energy Landscape and Green Hydrogen Mission
- What is Green hydrogen?
Key Highlights of the Report on India’s Energy Landscape and Green Hydrogen Mission
Energy Landscape and Demand Projection:
- India ranks as the third-largest global economy in terms of energy requirements.
- Energy demand is expected to surge by 35% by 2030.
- In 2022, India’s energy import bill reached USD 185 billion.
Commitment to Net Zero and COP26:
- India pledged to achieve Net Zero by 2070 at COP26 in 2021.
- Green Hydrogen is identified as crucial for meeting energy security needs and reducing emissions in hard-to-abate sectors.
National Green Hydrogen Mission (NGHM):
- Launched by the Indian government in 2022.
- Aims to boost green hydrogen production and consumption with approximately USD 2.3 billion in incentive funding (2022-2030).
Current Hydrogen Production Scenario:
- India presently produces 6.5 MMTPA of hydrogen, mainly for crude-oil refineries and fertilizer production.
- Majority of hydrogen supply is Gray Hydrogen, produced with fossil fuels, contributing to CO2 emissions.
Renewable Energy Potential and Capacity Expansion:
- Green Hydrogen production necessitates a substantial supply of renewable energy for electrolysis.
- India’s renewable energy potential can support green hydrogen growth, but rapid capacity addition is required for both green hydrogen and overall electricity needs.
Limited Traction and Anticipated Growth:
- Limited on-the-ground traction for green hydrogen, with most stakeholders adopting a “wait-and-watch” approach.
- Expectations point to significant green hydrogen production beginning in 2027 and beyond.
Constraints on Expansion:
- Supply-side constraints include the cost of production and delivery.
- Demand-side constraints involve the readiness of Indian players to integrate green hydrogen into traditional industrial processes.
What is Green hydrogen?
- A colourless, odourless, tasteless, non-toxic and highly combustible gaseous substance, hydrogen is the lightest, simplest and most abundant member of the family of chemical elements in the universe.
- But a colour — green — prefixed to it makes hydrogen the “fuel of the future”.
- The ‘green’ depends on how the electricity is generated to obtain the hydrogen, which does not emit greenhouse gas when burned.
- Green hydrogen is produced through electrolysis using renewable sources of energy such as solar, wind or hydel power.
- Hydrogen can be ‘grey’ and ‘blue’ too.
- Grey hydrogen is generated through fossil fuels such as coal and gas and currently accounts for 95% of the total production in South Asia.
- Blue hydrogen, too, is produced using electricity generated by burning fossil fuels but with technologies to prevent the carbon released in the process from entering the atmosphere.
Green Hydrogen Importance
- Hydrogen is being used across the United States, Russia, China, France and Germany. Countries like Japan desire to become a hydrogen economy in future.
- Green hydrogen can in future be used for
- Electricity and drinking water generation, energy storage, transportation etc.
- Green hydrogen can be used to provide water to the crew members in space stations.
- Energy storage- Compressed hydrogen tanks can store the energy longer and are easier to handle than lithium-ion batteries as they are lighter.
- Transport and mobility- Hydrogen can be used in heavy transport, aviation and maritime transport.
India’s Initiatives to Promote Green Hydrogen
National Green Hydrogen Mission:
- The launch of the National Green Hydrogen Mission aims to significantly boost green hydrogen production in India.
- The mission targets the annual production of 5 million metric tonnes of green hydrogen by 2030.
- This initiative is closely aligned with India’s plan to establish approximately 125 gigawatts of renewable energy capacity.
- The program provides financial incentives to support domestic production of electrolysers and green hydrogen.
- These incentives intend to accelerate the adoption of green hydrogen technology, foster technological advancements, and drive down production costs.
Green Hydrogen Consumption Obligations:
- The Ministry of New and Renewable Energy (MNRE) has proposed the introduction of green hydrogen consumption obligations.
- Similar to the renewable purchase obligations for electricity distribution companies, these obligations will apply to the fertilizer and petroleum refining sectors.
- These industries will be required to incorporate a certain percentage of green hydrogen in their overall hydrogen consumption.
- This measure aims to drive the adoption of green hydrogen across key sectors, further contributing to India’s transition to cleaner energy sources.
-Source: The Hindu
