The Union Budget of 2021-22 announced the National Hydrogen Energy Mission (NHM), an initiative that will create a roadmap for using hydrogen as an energy source. This initiative could potentially transform transport and leverage one of the earth’s most abundant elements for cleaner, alternative fuel options.
Key Points About the National Hydrogen Energy Mission
The focus of the NHM will be on generating hydrogen from green power resources and linking India’s growing renewable capacity with a burgeoning hydrogen economy. This aligns with India’s ambitious goal of achieving 175 GW by 2022. The budget for 2021-22 has allocated Rs. 1500 crore for renewable energy development and NHM. Through this, the usage of hydrogen not only aids India in achieving its emission goals under the Paris Agreement but also reduces import dependency on fossil fuels.
About Hydrogen
Hydrogen is the lightest and first element on the periodic table. With a weight that’s less than that of air, it rises in the atmosphere and is rarely found in its pure form, H2. At standard temperature and pressure, hydrogen is a nontoxic, nonmetallic, odorless, tasteless, colorless, and highly combustible diatomic gas. Hydrogen fuel is a zero-emission fuel that can be burned with oxygen. It can be used in fuel cells, internal combustion engines, and even as a fuel for spacecraft propulsion.
Types of Hydrogen
In India, the bulk of hydrogen produced is Grey Hydrogen, extracted from hydrocarbons such as fossil fuels and natural gases, with CO2 as a byproduct. Blue Hydrogen, with CO and CO2 as byproducts, is sourced from fossil fuels and the byproducts are captured and stored. Lastly, Green Hydrogen is generated from renewable energy sources like solar and wind power where electricity splits water into hydrogen and oxygen. This type of hydrogen has only water and water vapor as byproducts.
Asia-Pacific Stance
In the Asia-Pacific region, Japan and South Korea are leaders in terms of hydrogen policy making. In 2017, Japan introduced the Basic Hydrogen Strategy which outlines the nation’s action plan till 2030, including the establishment of an international supply chain. South Korea legislated the Hydrogen Economy Development and Safe Management of Hydrogen Act, 2020 to operate hydrogen projects and fuel cell production units. They have also passed the Economic Promotion and Safety Control of Hydrogen Act, aiming to bring transparency to their nation’s hydrogen pricing system.
Indian Context
India holds great potential in green hydrogen production given its favorable geographical conditions and abundant natural resources. The government has spearheaded the expansion of the gas pipeline infrastructure across the country and introduced reforms for the power grid, such as the introduction of smart grids. With capacity addition to renewable power generation, storage, and transmission, producing green hydrogen in India can not only be cost-effective, but it can gradually ensure self-sufficiency and secure energy.
Policy Challenges
One major challenge hindering the commercial use of hydrogen is the economic sustainability of extracting green or blue hydrogen. The technologies used in the production and application of hydrogen, such as Carbon Capture and Storage (CCS) and hydrogen fuel cell technology, are still in their infancy and costly, which increases the overall production cost of hydrogen. Post-plant completion, the maintenance of fuel cells can also be expensive.
Way Forward
Despite these challenges, India can uniquely position itself by investing in R&D, building capacity, evolving compatible legislation, and creating demand among its vast population. This approach can propel India to crystalize a prominent role in the hydrogen economy, even potentially exporting hydrogen to neighboring countries and beyond.