Boosting green hydrogen

Context: India’s recent announcement on aim for net-zero carbon emissions by 2070 at COP26.

Significance of Green Hydrogen

• Crucial weapon: To fight climate change.
• Improves capacity: The long-term energy storage capabilities of renewable energy.
• De-carbonise: Sectors like cement, steel, and refineries that depend on coal.
• Solution for over a fifth of final energy demand by mid-century — contributing a cumulated reduction of 80Gt of CO2.
• Reduce annual import bills: Developing a value chain for hydrogen from its production to its diverse applications thus reducing dependency on fossil fuels/oils.

Challenges before India

• Dependency on Coal and Oil: 75% of India’s energy demand is met by coal and oil, including imports. This is again expected to increase.
• Production of Green Hydrogen: 70% of the investments required to produce green hydrogen through electrolysis goes into generating renewable energy.

Way Forward 

• Synergy between renewable energy and green hydrogen: It must be tapped to tackle the dependence on fossil fuel and take greater advantage of India’s solar capacity.
• Increase the solar capacity: The 3000 times increase in past decade to be repeated. The cost can be reduced further from Rs.2/kWh. This enables smooth generation of Green Hydrogen at less cost.
• Funding: Government funding and long-term policies that attract private investments within the standards and a progressive compliance framework.
• Mandated use & support: The dependency on Green Hydrogen shall be made mandatory with government support to sectors.
• First, key sectors with low transition costs, such as refineries, fertilizers and natural gas.
• Second, steel, cement and road mobility. Heavy-duty vehicles should receive State and Central incentives.
• Policy initiatives: To inspire the private sector to invest more in green hydrogen and give the boost it requires in its nascent stages.
• Grey to Green Hydrogen: India’s should replace current grey hydrogen production of six million tonnes per annum, which is 8.5% of global annual production.
• Reduce dependence on imported ammonia.
• It should aim to produce 4-6 million tonnes of green hydrogen per annum by the end of the decade and export at least 2 million tonnes per annum.

Conclusion: With its abundant and cheap solar energy, India has the upper hand to tap into these investments and lead global efforts in transitioning to green hydrogen. 

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