In a significant stride towards renewable energy, the Union Government has sanctioned a whopping Rs 19,744 crore National Green Hydrogen mission. The foremost objective of this mission is to establish India as an influential global hub for green hydrogen, its production, usage and exportation.
Understanding the National Green Hydrogen Mission
The National Green Hydrogen Mission intends to provide incentives for the large-scale commercial production and subsequent exportation of green hydrogen, aiming to establish India as a net exporter. Further, it aims to facilitate the creation, production, utilization, and export of this renewable resource.
This mission introduces strategic sub-schemes, like the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), which would fund electrolysers’ domestic manufacturing and green hydrogen production. Moreover, certain states and regions with potential for large scale production or utilization of hydrogen would be identified and developed into Green Hydrogen Hubs.
By 2030, the mission aims to develop a green hydrogen production capacity of at least 5 Million Metric Tonne per annum. It also projects the addition of approximately 125 GW renewable energy capacity. This expected to necessitate over Rs 8 lakh crore of total investments and likely generate six lakh jobs, while reducing fossil fuel imports by over Rs 1 lakh crore and decreasing almost 50 MT of annual greenhouse gas emissions.
The Ministry of New and Renewable Energy will serve as the nodal ministry for this mission.
Potential of Green Hydrogen
India’s favourable geographic location, abundance of sunlight and wind resources position it well for large-scale green hydrogen production. Green hydrogen technology is being promoted in sectors where direct electrification is impractical, such as heavy-duty transport, some industrial sectors, long-range transportation and long-term power sector storage.
Challenges in Implementing the Green Hydrogen Mission
Despite its potential, the green hydrogen industry still faces some significant challenges. As green hydrogen development is still in its nascent stage globally, India lacks the necessary infrastructure to execute all intermediary steps. Economic sustainability is another major challenge, as extracting green hydrogen commercially needs to be cost-competitive with conventional fuels and technologies, especially for transportation fuel cells.
What is Green Hydrogen?
Hydrogen is a primary industrial fuel used in the production of several commodities like ammonia, steel, refineries and electricity. However, the hydrogen produced from coal, known as ‘black or brown’ hydrogen, comprises most of the hydrogen manufactured today.
Green hydrogen is derived when an electric current is passed through water, splitting it into elemental oxygen and hydrogen through electrolysis. If the electricity used for this process comes from a renewable source like wind or solar, the resultant hydrogen is referred to as green hydrogen. Each colour assigned to hydrogen signifies the source used to derive the hydrogen molecule. For example, if coal is used, it’s referred to as brown hydrogen.
Current Production and Need for Green Hydrogen
Green hydrogen currently accounts for less than 1% of global hydrogen production due to its expensive production costs. Interestingly, green hydrogen is hailed as one of the cleanest energy sources with virtually zero emissions, hence making it desirable for use in fuel cells for cars and energy-intensive industries like fertilizers and steel manufacturing. This has resulted in countries worldwide endeavouring to build green hydrogen capacity to ensure energy security and help reduce carbon emissions.
Furthermore, initiatives related to renewable energy like Jawaharlal Nehru National Solar Mission (JNNSM), International Solar Alliance, PM-KUSUM, National Wind-Solar Hybrid Policy and Rooftop Solar Scheme are making strides towards increasing the reliance on renewable energy sources.
Way Forward
An immediate necessity is to announce incentives to persuade industrial hydrogen users to switch to green hydrogen. India needs to develop supply chains in the form of pipelines, tankers, intermediate storage and last leg distribution networks. Additionally, an effective skill development programme is required to ensure that lakhs of workers can be suitably trained to adapt to a sustainable green hydrogen economy. The potential to reduce the cost of green hydrogen using low-cost renewable power plants and experience gained through solar and wind reverse auctions is a significant advantage. A large market potential, due to the young demography and thriving economy, will be a long-term benefit for the government while pushing for the application of hydrogen-based technologies.