INTRODUCTION

Green hydrogen is revolutionising the clean energy sector, which is made by splitting water with renewable electricity and  provides zero-emission fuel to decarbonize multiple sectors. From extending the range of electric vehicles to powering clean industrial processes, green hydrogen offers a major opportunity for sustainability.

WHAT IS GREEN HYDROGEN

• Green hydrogen is a type of hydrogen produced through a process called electrolysis, using renewable energy sources like wind or solar power. 

• It involves splitting water (H2O) into its constituent elements, hydrogen (H2) and oxygen (O2), with zero greenhouse gas emissions.

TYPES OF HYDROGEN

NEED FOR GREEN HYDROGEN

• Environmental benefits: It can reduce carbon footprints by 76% to 97% compared to traditional hydrogen production methods.

• Zero tailpipe emissions: Green hydrogen, when utilised in applications like fuel cells for vehicles or power generation, emits no greenhouse gases or pollutants at the point of use.

• Versatility: Green hydrogen has versatile applications, substituting fossil fuels in transportation (such as hydrogen fuel cell electric vehicles), industries (like steel and chemicals), Fertiliser Industries and power generation and helps in decreasing carbon footprints across various sectors.

• Energy security and resilience:

• Reduced reliance on fossil fuels: International Renewable Energy Agency (IRENA) suggests green hydrogen could meet 18% of global energy demand by 2050, further decreasing fossil fuel dependence.

• Low Energy Intensive Process: Currently, most hydrogen produced for industrial consumption and applications is ‘grey’ hydrogen, which is produced from natural gas through energy-intensive processes, and has high carbon emissions

• Economic benefits:

• Job creation: 

• The National Skills Network of India estimates the green hydrogen sector in India has the potential to generate over 600,000 Job positions

• Market growth:  Green hydrogen presents a vast new market opportunity for companies involved in renewable energy, electrolysis, storage, and fuel cell development. 

INDIAN POLICIES AND INITIATIVES

• National Green Hydrogen Mission

• Program to incentivise the commercial production of green hydrogen and make India a net exporter of the fuel.

• Objective:

• By 2030, aim to achieve a green hydrogen production capacity of 5 MMT per year and alongside adding renewable energy capacity of about 125 GW (gigawatt) in India.

• SIGHT program (Strategic Interventions for Green Hydrogen Transition): 

•  Aims to increase domestic electrolyzer manufacturing and green hydrogen production

• This program receives ₹17,490 crore for research & development, pilot projects, and capacity building.

• Budget 2024 Allocation:  The Union Budget for 2024-25 further boosted green hydrogen by allocating ₹600 crore (approximately USD 7.3 million). This signifies a substantial increase:

• 102% hike: This allocation represents a 102% increase compared to the previous year's budget of ₹297 crore for green hydrogen under the National Green Hydrogen Mission.

• Government of India's Foreign Direct Investment (FDI) policy allows up to 100% FDI in the renewable energy sector under the automatic route

• INITIATIVES:

• Prime Minister virtually launched India's first indigenously developed hydrogen fuel cell ferry. 

• The vessel, manufactured by Cochin Shipyard Limited (CSL), will be deployed for service at Varanasi in Uttar Pradesh.

• Union Minister of Petroleum & Natural Gas flagged off the country's first Green Hydrogen Fuel Cell Bus in New Delhi

• Harit Nauka guidelines by the Shipping Ministry: 

• States must use green fuels for half their inland waterway passenger fleets by 2035, and 100 per cent by 2045.

INDIA’S POTENTIAL

• Abundant Renewable Resources:

• With the potential resource of Solar and Wind Power gives a higher utilisation because now we are also able to operate 24 x 7.

• Favourable Government Policies:

• Such as National Green Hydrogen Mission, India allows up to 100% Foreign Direct Investment (FDI) under the automatic route for the renewable energy sector, including activities related to setting up and operating renewable energy power plants

• Skilled Workforce and Manufacturing Base:

• Large Workforce: India has a large pool of skilled engineers and technicians who can be trained for the green hydrogen industry.

• Manufacturing Potential:  India has a well-established manufacturing sector, which can be leveraged to build electrolyzers and other equipment needed for green hydrogen production.

• Strategic Location and Export Potential:

• Proximity to Key Markets: India's geographical location allows for easy access to potential export markets in Asia and beyond.

OPPORTUNITIES FOR INDIA

• Reduced Carbon Footprint and Meeting Climate Goals

• Green hydrogen adoption can drastically cut India's fossil fuel dependency, reducing its carbon footprint. 

• Additionally, it can aid in meeting India's climate targets set in agreements like the Paris Agreement and achieve Nationally Determined contributions.

• Hydrogen is poised to be a game changer in India's ambitious quest to achieve Net-Zero emissions by the year 2070.

• Strategic advantage:

• Currently  China dominates the markets for green hydrogen in the Asia Pacific region, so becoming a major green hydrogen producer can give India a strategic advantage in the global energy market.

• New industries and markets:  

• The green hydrogen industry can create new opportunities for businesses involved in manufacturing electrolyzers, storage equipment, and related technologies.

• Job Creation and Economic Growth:

• Investing in training and education programs can equip India's workforce with the skills needed for the green hydrogen sector, leading to job creation and economic growth.

• Hub for Green Hydrogen Derivatives: Green hydrogen can be converted into other clean fuels like ammonia. 

• India can become a hub for producing and exporting these green derivatives.

CHALLENGES

• High Import Dependency:

• In FY23, India imported machines and apparatus for electro-plating, electrolysis/electrophoresis worth $45.61 million, a 40 per cent jump from the previous fiscal year. 

• High Production Costs:  India's grey hydrogen costs are high due to reliance on liquefied natural gas (LNG) for production. 

• much local natural gas is allocated in priority to urea production or kitchen consumption.

• Renewable Energy Capacity Gap: 

• India must annually add about 125 GW of renewable energy capacity to meet its green hydrogen 2030 targets

• So far India has only achieved 119 GW of the 175 GW targeted capacity using solar, wind, bio-power and small hydro. 

• Electrolyzer Challenges: According to the International Energy Agency (IEA), as of 2021, global electrolyzer manufacturing capacity is 8 GW/year. 

• For India to meet its 2030 target, it would require approximately 60-100 GW of electrolyzer capacity, nearly 12 times the current global production capacity.

• Access to rare earth minerals: A market largely such as lanthanum, yttrium and zirconium which are largely controlled by China will be crucial in expanding electrolyzer production capacity..

• Less research and Development to improve electrolyzer efficiency and reduce reliance on expensive materials.

• Storage and Transportation Infrastructure:

• Storage: India currently lacks dedicated large-scale storage facilities for green hydrogen. Traditional options like compressed gas and liquefaction have limitations:

• Compressed Hydrogen Storage:  Requires high pressure, leading to energy losses during compression and decompression (around 10-15%).

• Liquefied Hydrogen Storage:Requires significant energy consumption for cooling hydrogen to -253°C for liquefaction, impacting overall efficiency.

• Transportation:

• Most hydrogen transportation globally occurs via pipelines. However, India's existing natural gas pipeline network might not be readily adaptable for green hydrogen due to material compatibility and safety concerns.

• Policy and Regulatory Challenges:

• Standardisation and Certification:  Lack of standardised regulations and certification processes for green hydrogen production, transportation, and use creates uncertainty for investors and hinders market development.

• Grid Integration Challenges:  

• A 2022 study by the World Bank estimates that India needs to invest USD 100 billion by 2030 to modernise its electricity grid to accommodate large-scale renewable energy integration.

• End Use Challenge: Using alternative energy carriers like hydrogen may not be technically or economically sensible where electricity can serve the purpose directly. 

• However, if considering storing green hydrogen for later use, establishing safety standards for storage and transportation becomes critical, increasing the cost of hydrogen as a fuel.

• Resource Challenges:

• Water Availability:  Green hydrogen production through electrolysis requires water.  While India has abundant water resources, ensuring sustainable water use in water-stressed regions needs careful planning and management.

• Land Availability:  Setting up large-scale solar and wind farms for green hydrogen production necessitates significant land acquisition,  which can pose challenges in densely populated areas.

• Other Challenges:

• Public Awareness:  Raising public awareness about the benefits of green hydrogen and creating a market demand for clean hydrogen-powered technologies (e.g fuel cell vehicles) is crucial for wider adoption.

• Skilled Workforce Development:  Developing a skilled workforce with expertise in green hydrogen technologies,  electrolyzer maintenance, and safety protocols is essential for  industry growth.

WAY FORWARD

• Cost Reduction:

• Focus on R&D: Drive research into more efficient electrolyzers and alternative materials to bring down production costs.

• Financial Incentives: Provide subsidies or tax breaks for domestic electrolyzer manufacturing to stimulate domestic production.

• Infrastructure Development:

• Public-Private Partnerships:  Collaboration between the government and private sector can accelerate R&D and promote the development of a robust domestic electrolyzer industry.

• Repurposing Existing Pipelines: Evaluate the feasibility of using existing natural gas pipelines for hydrogen transportation after necessary modifications.

• Investing in New Infrastructure: Vibrant electrolyzer manufacturing hubs are crucial. 

• These hubs, akin to industrial zones, are where the government offers land or electricity at special rates, encouraging the entire value chain to cluster together, similar to India's automotive hubs..

• Explore Alternative Storage: Investigate options like underground salt caverns and ammonia carriers for cost-effective storage solutions.

• Bunkering near International Ports: it enables safe storage and supply of green ammonia to carrier ships. 

• Policy and Regulatory Framework:

• Standardisation and Certification: Bureau of Indian Standards should come up with international standards for green hydrogen production, transportation, and use to ensure quality and safety.

• Streamlining Permitting Processes: Implement online application systems and establish clear timelines for project approvals to expedite development.

• Mandate the Use of Green Hydrogen: The government should introduce mandates for the oil refining, fertiliser, and steel sectors to procure green hydrogen and green ammonia for a portion of their needs.

• Allowing multi-locational SEZs:

• It enables developers to use wind energy for which turbines are placed at a considerable distance from each other.

• Currently, SEZs need to have a contiguous land area of 50 hectares or more

• Wind turbines need space between them, which could be around 250 to 400 metres. 

• Multi-locational SEZs facilitate wind energy projects by allowing developers to place turbines in various areas within the same zone

• Enhancing Adoption:

• Develop Clear Green Hydrogen Definition: Define "green hydrogen" to ensure transparency and avoid greenwashing practices. *

• Demand Creation: Implement consumer incentives for hydrogen-powered vehicles and raise public awareness about green hydrogen's benefits.

• Skill Development:  

• Investing in programs to train a skilled workforce for electrolyzer manufacturing and maintenance is crucial for building a domestic industry

GLOBAL BEST PRACTICES

• Financial Incentives:

• Germany: Offers feed-in tariffs for green hydrogen production and tax breaks for electrolyzer purchases, stimulating investment.

• China: Provides subsidies for green hydrogen projects, attracting significant investment and project development.

• Clear Regulatory Frameworks:

• European Union: The EU Hydrogen Strategy outlines clear targets, certification processes, and standards for green hydrogen, promoting market clarity.

• Japan: Japan has established a regulatory framework for hydrogen safety handling and transportation, fostering a safe and reliable hydrogen ecosystem.

• Investing in Research & Development (R&D):

• Japan:  Heavily invests in R&D for advanced electrolysis technologies and materials, aiming to improve efficiency and reduce costs.

• South Korea:  Prioritises R&D for hydrogen storage solutions, exploring options like solid-state storage for improved efficiency and safety.

• Example: The Korean Institute of Energy Research (KIER) is developing high-density solid-state hydrogen storage materials.

• Public-Private Partnerships (PPPs):

• Australia: The "H2Perth" project is a collaboration between public and private entities aiming to create a large-scale green hydrogen production and export hub.

• Public Awareness and Demand Creation:

• Consumer Incentives:

• California (USA): Offers subsidies for purchasing hydrogen fuel cell vehicles (FCEVs) to encourage consumer adoption.

• Public Education Campaigns:

Japan: Runs public awareness campaigns highlighting the benefits of green hydrogen for a clean energy future, fostering public support for hydrogen adoption

CONCLUSION

By embracing global best practices and leveraging initiatives like India's Green Hydrogen Mission, the nation can lead the charge towards a sustainable future. This effort not only positions India as a potential "superpower" in green hydrogen production,

Tags:
Polity

Keywords:
GREEN HYDROGEN National Green Hydrogen Mission Special Economic Zone or SEZ: