By - King Stubb & Kasiva on October 20, 2023
As renewable energy costs decrease over time, alongside economies of scale, ongoing projects, and technological advancements, green hydrogen's affordability will improve. To fully capitalize on this potential, it is crucial to anticipate these trends and act proactively. This article explores the development of green hydrogen in India, highlighting the incentives provided by state and national governments and delving into the crucial regulatory aspects involved in establishing green hydrogen plants.
Green Hydrogen is produced using electrolysis of water with electricity generated by renewable energy. The carbon intensity ultimately depends on the carbon neutrality of the source of electricity (i.e., the more renewable energy there is in the electricity fuel mix, the “greener” the hydrogen produced). It can be stored as gas or liquid or integrated into other molecules, making it highly adaptable for numerous uses. Whether employed as a fuel for transportation and heating or utilized as a means for storing surplus renewable electricity, green hydrogen emerges as a pivotal solution in the transition to a low-carbon future.
In India's journey towards green hydrogen dominance, a pivotal moment arrived with its partnership with the renowned Fraunhofer Society. Fraunhofer boasts 36 institutes dedicated to advancing hydrogen technologies. This collaboration signifies India's determination to leverage its abundant renewable resources for green hydrogen production. It's akin to joining forces with the world's foremost experts to expedite the transition to clean and green energy.
Furthermore, the National Green Hydrogen Mission – is a program to incentivize the commercial production of green hydrogen and make India a net exporter of fuel. The initial outlay includes Rs.17,490 crore for the Strategic Interventions for Green Hydrogen Transition (“SIGHT”) programme, Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crores towards other mission components. India has earmarked an ambitious target of producing 5 million metric tons of Green Hydrogen by 2030.
What's even more striking is that a significant 70% of this green hydrogen production is destined for global markets. India doesn't just aim to fulfil its energy requirements; it aspires to become a major global supplier of sustainable energy solutions. This grand vision firmly establishes India as a frontrunner in green hydrogen.
Despite the unique possibilities and advantages of green hydrogen production, the industry currently faces several challenges.
Governments wield a powerful arsenal of incentives, mandates, and supply-demand matching mechanisms to catalyse the growth of green hydrogen:
Standardizing green hydrogen certification is pivotal for international alignment and acceptance. India has proactively proposed discussions on global standards for green hydrogen through international forums.
The competitiveness of green hydrogen hinges on cost reduction, aiming for a cost of $1 per kilogram. The government can contribute through various avenues:
For green hydrogen to thrive on the global stage, standardization is imperative. India actively participates in international forums, such as the G20, to establish common definitions and regulations. This collaborative effort aims to create a seamless global green hydrogen ecosystem. It's akin to ensuring everyone speaks the same language, fostering international trade and cooperation.
The ultimate objective in India's green hydrogen journey is to drive down costs, making it cost-competitive with grey hydrogen. This multifaceted goal encompasses several key strategies:
India's pursuit of green hydrogen signifies more than just energy generation; it embodies a transformation in addressing climate change, reducing carbon emissions, and achieving energy self-sufficiency. This journey showcases India's leadership in tackling global challenges and pioneering innovative solutions.
India's Green Hydrogen Revolution is not merely an aspiration; it's a tangible reality in the making. With ambitious objectives, global collaborations, and an unwavering commitment to sustainability, India is on the path to becoming a dominant force in green hydrogen production. This direction brightens the way for a cleaner, more sustainable future for all and inspires the world to partake in the quest for eco-friendly energy.
Green hydrogen is produced through a process called electrolysis using renewable energy and generates no carbon emissions during production, while grey hydrogen is derived from natural gas and contributes to greenhouse gas emissions.
India's goal is to lead in green hydrogen production and export, positioning itself as a global leader in sustainable energy solutions and contributing to the world's clean energy transition.
Green hydrogen replaces fossil fuels, reducing carbon emissions across industries, mitigating climate change, and improving air quality, thus promoting a more sustainable environment.
 Analyst Report based on BNEF update