India is taking fast steps towards becoming the next global hub of green hydrogen. But, they will have to overcome a few hurdles to advance in the competition. Let’s find out how India will sustain itself in the race.
What’s Happening?
Like every other country, India also dreams of becoming the top green hydrogen-producing country in the next few years. To make this dream come true, India must manufacture electrolysers, essential to establish a green hydrogen ecosystem. But as of now, the work is still in progress.
On Wednesday, the Government approved the National Green Hydrogen Mission at a cost of Rs 19,744 crore. They have set a target of producing 5 million tonnes of green hydrogen by 2030. Under this mission, they aim to make India a global hub in green hydrogen production, use and export.
But the question is, what is green hydrogen in the first place?
What is Green Hydrogen?
Green hydrogen is a type of clean energy which can be used as a fuel. It is used extensively in sectors such as petrochemicals, fertilisers, steel, cement and semiconductors.
Now, to produce green hydrogen, we will need an electrolyser. A renewable energy source operates this electrolyser. So in the process, greenhouse gas is not emitted, leading to no pollution.
India currently consumes about 6 million tonnes of ‘grey hydrogen’. About 60% of the hydrogen used in the country is produced through Steam Methane Reformation (SMR) technology.
Cost – A Big Challenge
Green hydrogen is four times more expensive than grey hydrogen. The major reason behind this is that the electrolysation system is costly.
How is the Government Making Efforts?
According to Reuters, India is planning a $2 billion incentive program for the green hydrogen industry. It aims to cut emissions and gain a strong foothold in exports while reducing the production cost of green hydrogen by one-fifth over the next five years.
Investment in Electrolyser Ecosystem
India does not have an electrolyser manufacturing ecosystem, and almost everything is imported. But that could change as early as 2025, as the country is expected to have about 8GW of electrolyser manufacturing capacity.
According to Economic Times, nine companies have invested in seven projects, of which three are joint ventures, and three are solo investments. Ohmium International has set up India’s first green-hydrogen factory in Bengaluru. On the other hand, John Cockerill of Belgium will set up a factory in partnership with India’s Greenco.
Reliance and Adani Group have announced plans to make the world’s cheapest hydrogen. Larsen & Toubro and H2e Power also announced plans to build gigawatt-scale factories last year.
What’s Next?
According to a report by Economic Times, the incentive for making green hydrogen is likely to be Rs 50 per kg for three years. At the same time, Indian companies aim to sell 70% of the production to countries like South Korea, Japan and the European Union. Global demand for green hydrogen is estimated to exceed 100 million tonnes by 2030, from less than 75 million tonnes now.
Union Minister Anurag Thakur said that, ‘The government has set a target of making 50 lakh tonnes of green hydrogen by 2030’. If all goes well, India will be close to becoming a global hub of green hydrogen.
India has immense potential for renewable energy, and efforts to harness it have been commendable. The approval of the National Green Hydrogen Mission is a positive sign for the industry.
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