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Enabling Measures Roadmap for Adoption in India

Context:

Recently, the World Economic Forum along with Bain & Company has released a report titled- Green Hydrogen: Enabling Measures Roadmap for Adoption in India, highlighting that Green Hydrogen production cost needs to be reduced to less than or equal to USD 2 per kg.

Relevance

GS III: Environment and Ecology

Dimensions of the Article:

  1. Key Highlights of the Report on India’s Energy Landscape and Green Hydrogen Mission
  2. What is Green hydrogen?

Key Highlights of the Report on India’s Energy Landscape and Green Hydrogen Mission

Energy Landscape and Demand Projection:

  • India ranks as the third-largest global economy in terms of energy requirements.
  • Energy demand is expected to surge by 35% by 2030.
  • In 2022, India’s energy import bill reached USD 185 billion.

Commitment to Net Zero and COP26:

  • India pledged to achieve Net Zero by 2070 at COP26 in 2021.
  • Green Hydrogen is identified as crucial for meeting energy security needs and reducing emissions in hard-to-abate sectors.

National Green Hydrogen Mission (NGHM):

  • Launched by the Indian government in 2022.
  • Aims to boost green hydrogen production and consumption with approximately USD 2.3 billion in incentive funding (2022-2030).

Current Hydrogen Production Scenario:

  • India presently produces 6.5 MMTPA of hydrogen, mainly for crude-oil refineries and fertilizer production.
  • Majority of hydrogen supply is Gray Hydrogen, produced with fossil fuels, contributing to CO2 emissions.

Renewable Energy Potential and Capacity Expansion:

  • Green Hydrogen production necessitates a substantial supply of renewable energy for electrolysis.
  • India’s renewable energy potential can support green hydrogen growth, but rapid capacity addition is required for both green hydrogen and overall electricity needs.

Limited Traction and Anticipated Growth:

  • Limited on-the-ground traction for green hydrogen, with most stakeholders adopting a “wait-and-watch” approach.
  • Expectations point to significant green hydrogen production beginning in 2027 and beyond.

Constraints on Expansion:

  • Supply-side constraints include the cost of production and delivery.
  • Demand-side constraints involve the readiness of Indian players to integrate green hydrogen into traditional industrial processes.

What is Green hydrogen?

  • A colourless, odourless, tasteless, non-toxic and highly combustible gaseous substance, hydrogen is the lightest, simplest and most abundant member of the family of chemical elements in the universe.
  • But a colour — green — prefixed to it makes hydrogen the “fuel of the future”.
  • The ‘green’ depends on how the electricity is generated to obtain the hydrogen, which does not emit greenhouse gas when burned.
  • Green hydrogen is produced through electrolysis using renewable sources of energy such as solar, wind or hydel power.
  • Hydrogen can be ‘grey’ and ‘blue’ too.
    • Grey hydrogen is generated through fossil fuels such as coal and gas and currently accounts for 95% of the total production in South Asia.
    • Blue hydrogen, too, is produced using electricity generated by burning fossil fuels but with technologies to prevent the carbon released in the process from entering the atmosphere.
Green Hydrogen Importance
  • Hydrogen is being used across the United States, Russia, China, France and Germany. Countries like Japan desire to become a hydrogen economy in future.
  • Green hydrogen can in future be used for
    • Electricity and drinking water generation, energy storage, transportation etc. 
    • Green hydrogen can be used to provide water to the crew members in space stations.
    • Energy storage- Compressed hydrogen tanks can store the energy longer and are easier to handle than lithium-ion batteries as they are lighter.
    • Transport and mobility- Hydrogen can be used in heavy transport, aviation and maritime transport.

India’s Initiatives to Promote Green Hydrogen

National Green Hydrogen Mission:
  • The launch of the National Green Hydrogen Mission aims to significantly boost green hydrogen production in India.
  • The mission targets the annual production of 5 million metric tonnes of green hydrogen by 2030.
  • This initiative is closely aligned with India’s plan to establish approximately 125 gigawatts of renewable energy capacity.
  • The program provides financial incentives to support domestic production of electrolysers and green hydrogen.
  • These incentives intend to accelerate the adoption of green hydrogen technology, foster technological advancements, and drive down production costs.
Green Hydrogen Consumption Obligations:
  • The Ministry of New and Renewable Energy (MNRE) has proposed the introduction of green hydrogen consumption obligations.
  • Similar to the renewable purchase obligations for electricity distribution companies, these obligations will apply to the fertilizer and petroleum refining sectors.
  • These industries will be required to incorporate a certain percentage of green hydrogen in their overall hydrogen consumption.
  • This measure aims to drive the adoption of green hydrogen across key sectors, further contributing to India’s transition to cleaner energy sources.

-Source: The Hindu


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