Context
∙ The World Economic Forum has released its report ‘Green Hydrogen: Enabling Measures Roadmap for Adoption in India’.
∙ The report recommends five areas that can benefit from public-private interventions in expediting the adoption of green hydrogen in India.
Extraction of Hydrogen
∙ Hydrogen exists in combination with other elements.
∙ Hence, for using it as a source of energy, it has to be extracted from naturally occurring compounds like water (which is a combination of two hydrogen atoms and one oxygen atom).
∙ Green hydrogen refers to hydrogen that is produced using renewable energy sources, such as wind, solar, or hydropower, through a process called electrolysis.
∙ Electrolysis involves splitting water (H2O) into hydrogen (H2) and oxygen (O2) using an electric current.
∙ When this electricity comes from renewable sources, the hydrogen produced is considered “green” because the overall process has a minimal environmental impact.
∙ Grey Hydrogen: It involves extracting hydrogen from natural gas through a process called steam methane reforming (SMR).
∙ This process releases carbon dioxide (CO2) as a byproduct, contributing to greenhouse gas emissions.
∙ Blue Hydrogen: It involves capturing and storing the CO2 emissions generated during the production of hydrogen from natural gas.
ο Significance of Green Hydrogen: Green hydrogen is gaining attention as a clean and sustainable energy carrier because it avoids carbon emissions during its production.
∙ It is seen as a key component in efforts to decarbonize various sectors, including industries that currently rely heavily on fossil fuels.
∙ The use of green hydrogen is being explored in areas such as transportation, industrial processes, and energy storage, with the goal of reducing overall carbon footprints and promoting a more sustainable energy future.
Need for the Transition
∙ India is currently the third-largest economy in the world in terms of energy needs, and the country’s demand for energy is set to surge – demand is estimated to grow 35% by 2030.
∙ India set a commitment to achieve net zero by 2070 at the United Nations Climate Change Conference in Glasgow (COP26).
∙ Green hydrogen is critical to help meet India’s energy security needs while reducing emissions on the path to net zero.
∙ Most of the country’s current hydrogen supply is grey hydrogen.
Key Highlights of the Report
∙ Trends: There is limited on-the-ground traction for green hydrogen in the country, and indicates that most are in a “wait-and-watch” phase.
∙ Many expect sizable production of green hydrogen to take effect beginning in 2027 and after.
Five goals that, if met, can accelerate the offtake of green hydrogen in India:
∙ On the supply side, a cost of $2/kg of hydrogen to reach cost-parity with grey hydrogen.
∙ On the demand side, enabling end industries to offtake green hydrogen by creating incentives for its use.
∙ Increasing direct subsidies for early adopters – for example, the USA has announced, under the Inflation Reduction Act (IRA), a tax credit of up to $3/kg of hydrogen.
∙ Supporting long capital investment cycles for technologies with long-term clarity on policies and incentives.
∙ Encouraging the development and testing of indigenous electrolyser technology.
Initiatives by Government of India for Transitioning towards Green Hydrogen
∙ National Hydrogen Energy Mission (NHEM): NGHM is a part of National Hydrogen Mission (NHM) which was announced by the finance minister in the Union Budget 2021-22.
∙ Objective: To make India a global hub for the production and export of green hydrogen.
∙ Green Hydrogen Policy: Several states in India have been working on formulating green hydrogen policies to attract investments and promote the development of green hydrogen projects.
ο Hydrogen Energy Roadmap: The Ministry of New and Renewable Energy (MNRE) has been working on a roadmap for hydrogen energy to guide the development and deployment of hydrogen technologies in the country.
ο International Collaboration: Collaborations with countries and organizations that have advanced in hydrogen technologies aim to facilitate knowledge transfer and technology adoption.
ο Policy Support for Renewable Energy: Policies promoting the growth of renewable energy sources, such as solar and wind power, indirectly support the production of green hydrogen, as these sources are often used in the electrolysis process to generate hydrogen.
ο Incentives and Subsidies: The government may provide financial incentives, subsidies, or other support mechanisms to encourage the private sector to invest in green hydrogen projects.
∙ This can include tax incentives, grants, and subsidies for production and consumption.
Conclusion
∙ India has a unique opportunity to become a global leader in the hydrogen energy ecosystem.∙ With proper policy support, industry action, market generation and acceptance, and increased investor interest, India can position itself as a low-cost, zero-carbon manufacturing hub, at the same time fulfilling its goal of economic development, job creation, and improved public health.
