Hydrogen, as an energy transporter, is critical for decarbonizing difficult-to-abate industries. Many industries, including iron ore and steel, fertilizers, refining, methanol, and marine transportation, produce significant volumes of CO2, and carbon-free hydrogen will be important in allowing thorough decarbonization.
While fast electrification of the economy will be a critical step toward decarbonizing energy systems and increasing efficiency, electricity will not be able to solve some carbon-intensive sectors that must be decarbonized in order to achieve net-zero emissions.
Hydrogen, as an energy transporter, is critical for decarbonizing difficult-to-abate industries. Many industries, including iron ore and steel, fertilizers, refining, methanol, and marine transportation, produce significant volumes of CO2, and carbon-free hydrogen will be important in allowing thorough decarbonization.
India is one of the pioneers in the field of green hydrogen. India is pursuing this with passion and determination for a variety of reasons.
To begin with, neither hydrogen nor electrolyzers are novel technologies. Globally, more than 70 million tons of hydrogen are generated each year, with India accounting for around 8% of total production.
Second, due to India’s specific edge in low-cost renewable-energy production and world-class clean-power execution skills, green hydrogen is the most cost-effective kind of hydrogen in the medium term. As a result, India has the potential to be one of the world’s most competitive producers of green hydrogen. Because renewable energy accounts for 75% of the cost of green hydrogen, India should aim to reduce the cost of solar electricity to Rs 1 per Kw/h through lower financing costs.
The third major reason to seek green hydrogen is that it will allow the establishment of a domestically generated energy carrier, which would lessen the $160 billion per year reliance on fossil fuel imports. Furthermore, with 500 GW of renewables predicted to come online by 2030, green hydrogen might be a solution for extracting value from surplus renewable power and avoiding grid duck curves. A number of key legislative initiatives aimed at establishing a green hydrogen ecosystem have recently been launched.
The three initiatives listed below will help India become a global leader in green hydrogen. First and foremost, India must take immediate measures to secure time-limited export markets. The EU is planning to double its renewable hydrogen imports by 2030. Exports to the EU, Japan, and South Korea have enormous potential. Second, India should promote industry research and development in electrolyzers and other green hydrogen components. Companies in India cannot rely on foreign technology providers.
Third, to ensure economies of scale for this embryonic industry to thrive, industrial uses such as refining and non-urea fertilizers must be forced to become 100 percent green hydrogen by 2030. By 2030, the price of green hydrogen should have dropped from $4 per kilogram to $1 per kg as a result of these actions. India can position itself as a low-cost, zero-carbon green hydrogen manufacturing powerhouse of the globe with adequate governmental backing, industry action, market growth, and increasing investor interest.
