Green Hydrogen: The New Age Fuel for India's Energy Transition

Green hydrogen has emerged as a strategic new-age fuel with immense potential to drive India's energy transition. It enables the country to fulfill its net-zero goals, enhance energy security, and position itself as a global exporter of green fuels and technologies.

With careful planning and implementation of the National Green Hydrogen Mission (NGHM), India aims to develop a green hydrogen production capacity of at least 5 million metric tonnes (MMT) per annum by 2030. This ambitious mission will lead to significant renewable energy capacity additions, help reduce carbon dioxide emissions, and achieve India's net-zero vision.

National Green Hydrogen Mission:

India has launched the INR 19,700-crore NGHM to achieve its green hydrogen goals. The mission aims to incentivize commercial green hydrogen production and position India as a net exporter of this fuel. The mission's targets include the development of a green hydrogen production capacity of at least 5 MMT per annum and the addition of 125 GW of renewable energy capacity in the country. The NGHM encompasses various sub-missions and activities, such as the Strategic Interventions for Green Hydrogen Transition (SIGHT) program and support for pilot projects and hydrogen hubs.

India as a Hydrogen Hub

Prime Minister Narendra Modi recently struck an agreement with his Australian counterpart to establish a green hydrogen task force. This task force will advise on accelerating the manufacture and deployment of clean hydrogen, focusing on electrolyzers, fuel cells, infrastructure, standards, and regulations. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has also highlighted India's aspiration to become a major green hydrogen hub and exporter by 2040, catering to domestic and global demand.

Progress and Challenges:

India has made significant strides in advancing green hydrogen technologies and infrastructure. With a budgetary outlay of INR 17,490 crore, the SIGHT program aims to fund the domestic manufacturing of electrolysers and promote green hydrogen production. Additionally, the allocation of INR 1,466 crore for pilot projects and hydrogen hubs highlights India's commitment to exploring new applications and scaling up green hydrogen adoption. However, several challenges must be addressed to unlock the full potential of green hydrogen in India. Currently, green hydrogen production costs are higher compared to fossil fuel-based processes. The process of electrolysis, which produces green hydrogen, requires a substantial amount of electricity. The cost of renewable electricity in India remains relatively high, making green hydrogen costlier to produce. India faces a lack of infrastructure for producing, storing, and distributing green hydrogen. Adequate hydrogen refueling stations, pipelines, and storage facilities are crucial for the widespread adoption of green hydrogen.

Limited Adoption: Despite the potential benefits, green hydrogen technology has limited adoption in India. Awareness and understanding of green hydrogen among the general public need to be increased. Moreover, businesses require incentives to switch to green hydrogen.

Unlocking the Full Potential of Green Hydrogen:
To overcome these challenges and unlock the full potential of green hydrogen, several strategies can be pursued:

Subsidies: The SIGHT program's proposed budgetary outlay of INR 13,000 crore can provide viability gap funding (VGF) for green hydrogen production. Subsidies on green hydrogen consumption will reduce production costs, creating demand-side pull across industries.

Manufacturing Capacity: INR 4,500 crore allocated for electrolyser manufacturing can support the development of a production-linked incentive (PLI) scheme. This will encourage domestic manufacturing and indigenization of electrolysers, stimulating the growth of the green hydrogen industry.