By - King Stubb & Kasiva on October 12, 2023
Green hydrogen has emerged as a powerful catalyst in the global quest for carbon neutrality and the fight against climate change. The manufacture of which is undertaken through electrolysis, which is a sustainable method of production, it uses electricity generated from renewable sources to split water into hydrogen and oxygen molecules.
After comprehending the great potential of green hydrogen and its environmental benefits, India has made significant efforts to decarbonize its economy and live up to its pledge to achieve Net Zero emissions by 2070. India has also taken several steps to decarbonize its economic growth path. To help attain these targets, the Indian government created the National Green Hydrogen Mission in January 2023. This objective is to promote the production, use, and export of green hydrogen while encouraging technological advancements and establishing a solid regulatory framework.
The Indian government has proactively addressed the challenges of the green hydrogen sector by implementing regulatory and policy measures, including:
Several obstacles and issues have the potential to impede India’s efforts towards green hydrogen. If the ambitious aim of creating 5 million tonnes of green hydrogen per year by 2030 is to be met, the availability of a consistent and abundant water supply would have to be ensured, which is currently a significant hurdle on this path, particularly in locations with limited water resources. Although wastewater can be used as a feedstock, the need for water treatment adds to production complexity and cost.
Another hurdle to the economic sustainability of large-scale green hydrogen production is the need for significant expenditures, particularly to lower the high capital costs involved with the production of electrolyzers. The sector also faces a demand and supply imbalance, with incentives mostly focused on the supply side, creating ambiguity about the requirements for green hydrogen consumption in critical sectors. Last but not least, energy losses at various stages of manufacturing highlight the significance of rapidly expanding renewable energy sources to aid in the manufacture of efficient and sustainable green hydrogen.
India’s road toward green hydrogen offers numerous options. As the world seeks long-term solutions to climate change, India has the potential to become a global leader in green hydrogen production and export. The goal of the National Hydrogen Mission of increasing 125 GW of renewable energy generation, lowering fossil fuel imports, and reducing greenhouse gas emissions opens the way to enormous economic growth.
R&D investments, combined with collaboration with global companies, can stimulate innovation, reduce production costs, and provide a competitive advantage in the burgeoning green hydrogen market. Furthermore, the mission’s emphasis on locally producing electrolysers has the potential to strengthen the renewable energy sector by creating jobs and stimulating innovation. With the appropriate plans and investments, India can not only meet its energy demands but also contribute to a more sustainable and environmentally friendly global future.
India’s development of a green hydrogen economy is an important step in achieving its long-term ambitions. The Green Hydrogen Policy and National Hydrogen Mission are admirable projects, but they must address issues like as water availability, economic feasibility, demand stimulation, and energy efficiency. Effective planning, incentives, domestic demand development, and a strong legislative framework are critical to the mission’s success. India is taking substantial steps to construct a solid foundation for its green hydrogen ecosystem, with research, innovation, and international engagement all playing important roles in moulding the country’s future of green hydrogen.
To promote its usage and export, India has devised a legal framework for green hydrogen production. Green Hydrogen Policy, RE Open Access Rules, Green Hydrogen Mission, SIGHT Phase I Guidelines, and standards for green hydrogen generation are among the initiatives. These policies provide incentives, norms, and standards to encourage the generation of green hydrogen.
Limited water resources for the energy-intensive electrolysis process, high capital expenditures for electrolysers, demand and supply imbalances, and energy losses during manufacturing are among the obstacles that India has in green hydrogen generation. Addressing these issues is critical for the sector’s long-term economic viability and growth.
By focusing on renewable energy generation, minimising fossil fuel imports, and cooperating with global corporations, India has the potential to lead in green hydrogen production and export. R&D expenditures, local electrolyzer production, and strong legislative backing can spur innovation and job growth, thereby contributing to a more sustainable and environmentally friendly future.
[1] https://mnre.gov.in/img/documents/uploads/file_f-1688557917362.pdf.
King Stubb & Kasiva,
Advocates & Attorneys
Click Here to Get in Touch
New Delhi | Mumbai | Bangalore | Chennai | Hyderabad | Mangalore | Pune | Kochi
Tel: +91 11 41032969 | Email: info@ksandk.com
