INFRASTRUCTURE FOR HYDROGEN ECONOMY

Published on 01 Mar 2025

India is advancing its hydrogen economy by building essential infrastructure, including production facilities, storage systems, and refuelling stations. These efforts aim to support the transition to cleaner energy sources and promote the use of hydrogen fuel cell technologies.

Components of Hydrogen Economy Infrastructure

• Hydrogen Production Facilities

• Targeted Production: India aims to produce 5 million tonnes of green hydrogen annually by 2030. NTPC is leading pilot projects to develop large-scale hydrogen production facilities using renewable energy sources 

• Hydrogen Storage Systems

• High-Pressure Storage: Developing high-pressure storage tanks for hydrogen is crucial. For example, Indian Oil Corporation (IOC) is investing in advanced storage solutions to ensure safe and efficient storage.

• Hydrogen Distribution Networks

• Pipeline Development: India is working on establishing dedicated pipelines for hydrogen transportation. This includes projects to build pipelines that facilitate the movement of hydrogen from production sites to refuelling stations.

• Hydrogen Refuelling Stations

• Station Expansion: Initial plans include setting up hydrogen refuelling stations in major cities like Delhi and Mumbai to support the deployment of hydrogen fuel cell vehicles. The goal is to create a network of refuelling stations across key urban areas 

• Research and Development Centres

• Technological Innovation: Investment in R&D is focused on improving hydrogen technologies. Institutions such as IITs are collaborating on projects to advance hydrogen production, storage, and utilization technologies.

Challenges faced by Hydrogen Economy Infrastructure

• High Production Cost: The cost of producing green hydrogen via electrolysis remains high. Currently, hydrogen production costs in India are about $5-6 per kilogram, significantly higher than fossil fuel alternatives.

• Limited Storage Infrastructure: High-pressure storage and liquefaction technologies are still developing. India needs to scale up storage infrastructure to handle large volumes of hydrogen efficiently.

• Distribution Network Development: Establishing a comprehensive hydrogen distribution network is challenging due to the need for specialized pipelines and transport systems. Current infrastructure is insufficient for widespread hydrogen distribution.

• Refuelling Station Expansion: The rollout of hydrogen refuelling stations is slow. Limited station availability restricts the adoption of hydrogen fuel cell vehicles. Currently, only a few refuelling stations are operational, mainly in major cities.

• Technological and Research Gaps: There are gaps in research and development related to hydrogen technologies. Innovations are needed to improve efficiency, reduce costs, and make hydrogen technology commercially viable.

• Funding and Investment Constraints: Securing sufficient investment for hydrogen infrastructure projects is challenging. The sector requires substantial capital, and attracting private investment has been difficult.

• Regulatory and Policy Uncertainty: The regulatory framework for hydrogen infrastructure is still evolving. Uncertainties in policy and regulatory support can hinder investment and development.

Measures to improve Hydrogen energy infrastructure 

• Enhancing Production Capabilities

• Scaling Up Electrolysis: Increase investment in advanced electrolysis technology to lower production costs. NTPC is developing large-scale electrolyser projects to boost green hydrogen production.

• Renewable Energy Integration: Expand the use of solar and wind power for hydrogen production. The goal is to integrate 10,000 MW of renewable energy specifically for hydrogen production by 2030.

• Developing Storage Solutions

• High-Pressure Storage Systems: Invest in high-pressure storage tanks and liquefaction facilities to enhance hydrogen storage capacity. Indian Oil Corporation is working on such storage solutions to support increased hydrogen production.

• Innovative Storage Technologies: Support research into alternative storage methods, such as metal hydrides and chemical hydrogen storage, to improve storage efficiency and reduce costs.

• Expanding Distribution Networks

• Pipeline Infrastructure: Develop dedicated hydrogen pipelines to transport hydrogen from production sites to refuelling stations. GAIL India is exploring projects to build hydrogen pipelines.

• Logistics and Transport: Improve logistics for hydrogen transportation, including the development of specialized tankers and transportation networks.

• Increasing Refuelling Station Network

• Station Deployment: Establish more hydrogen refuelling stations across major cities and along key highways. Plans include expanding the network to cover 20 cities by 2025.

• Supporting Infrastructure: Build infrastructure at existing fuel stations to accommodate hydrogen refuelling and integrate hydrogen stations with electric vehicle charging points.

• Advancing Research and Development

• Funding R&D: Increase funding for research on hydrogen technologies, focusing on efficiency improvements and cost reductions. Support institutions like IITs for breakthrough innovations.

• Collaborative Projects: Foster collaboration between public research institutions and private companies to accelerate technological advancements.

• Implementing Supportive Policies

• National Hydrogen Mission: Strengthen the National Hydrogen Mission by providing clear incentives, subsidies, and regulatory support to stimulate growth in the hydrogen sector.

• Regulatory Framework: Develop and implement a comprehensive regulatory framework to ensure safety, standardization, and ease of investment in hydrogen infrastructure.

• Promoting Public-Private Partnerships

• Joint Ventures: Encourage partnerships between government agencies and private companies for the development of hydrogen infrastructure projects. Successful examples include NTPC’s collaborations with private firms.

• Investment Incentives: Provide tax incentives and financial support to attract private investment in hydrogen infrastructure development.

• Fostering International Cooperation

• Global Partnerships: Engage in international collaborations to learn from advanced hydrogen economies like Japan and Germany. Joint ventures and technology transfers can help leapfrog development.

• Knowledge Sharing: Participate in global forums and initiatives to share knowledge and best practices in hydrogen technology and infrastructure development.

Tags:
Economy

Keywords:
Infrastructure Non-conventional energy Hydrogen economy Electric vehicle Green energy

Syllabus:
General Studies Paper 3

Topics:
Infrastructure Development