As the world pivots towards sustainable energy solutions to combat climate change and achieve energy security, hydrogen has emerged as a transformative force in the energy landscape. With its zero-emission potential and versatility across transportation, power generation, and heavy industries, hydrogen offers a critical alternative to fossil fuels, shaping the global transition to a decarbonized future. India, aware of hydrogen’s strategic importance, has launched the National Hydrogen Mission (NHM) to carve its niche as a global leader in the hydrogen economy.
The power of hydrogen energy
Hydrogen energy holds immense promise as a clean, sustainable energy source. When used in fuel cells, hydrogen produces only water vapor, making it an ideal zero-emission substitute for fossil fuels. It can be derived through various processes, each with a different environmental footprint.
- Grey Hydrogen, which is produced from fossil fuels like natural gas, is carbon-intensive and contributes significantly to greenhouse gas (GHG) emissions.
- Blue Hydrogen also comes from natural gas but incorporates carbon capture and storage (CCS) technology to reduce emissions.
- Green Hydrogen is the most promising of the three, produced using renewable energy (solar, wind, etc.) to power the electrolysis of water. This method produces hydrogen without any carbon emissions, making it the cornerstone of sustainable energy solutions.
India’s National Hydrogen Mission: A bold leap forward
Launched in January 2023, India’s National Hydrogen Mission (NHM) is a pivotal step towards establishing the country as a global leader in the hydrogen economy. The mission’s ambitious objectives include:
- Producing at least 5 million metric tonnes (MMT) of green hydrogen annually by 2030.
- Attracting over ₹8 lakh crore (US$ 95.9 billion) in investments.
- Creating more than 600,000 jobs.
These goals align with India’s broader climate ambitions of achieving net-zero emissions by 2070 and energy independence by 2047. The NHM also aims to decarbonize heavy industries such as steel, cement, and chemicals while reducing reliance on imported fossil fuels, saving over US$ 90 billion annually.
Green Hydrogen: The key to combating climate change
Heavy industries are responsible for approximately 22% of global CO2 emissions. Replacing fossil fuels with green hydrogen in these sectors could dramatically reduce emissions. Moreover, hydrogen plays a critical role in stabilizing power grids, acting as an efficient storage medium for excess renewable energy, which can be utilized during peak demand hours.
The global hydrogen market is projected to grow exponentially in the coming decades, with green hydrogen set to account for 73-100% of total hydrogen demand by 2050. In India, this growth potential is evident, with major investments already underway. The country’s first green hydrogen plant, developed by GAIL in Madhya Pradesh, began operations in May 2024, with a capacity of 4.3 tonnes per day.
Roadmap for hydrogen success
India’s NHM outlines a clear roadmap for hydrogen adoption, divided into two key phases:
- Phase I (2022-2026): Focuses on creating demand for green hydrogen and scaling domestic electrolyzer manufacturing. This phase will also support pilot projects in sectors like green steel production, heavy-duty mobility, and shipping.
- Phase II (2026-2030): The focus will shift to achieving cost parity between green hydrogen and fossil fuels, enabling its widespread use across diverse sectors such as aviation, railways, and industry.
Key players in the energy space have already begun positioning themselves for this transition. Companies like Sembcorp and Essar Group have announced significant investments in green hydrogen projects, including a INR 36,238 crore (US$ 4.34 billion) investment in Tamil Nadu to produce green hydrogen for export to Japan.
Overcoming challenges
Despite its vast potential, hydrogen adoption faces several challenges:
- High production costs: Green hydrogen remains expensive, often costing US$ 2/kg more than grey hydrogen. Reducing these costs through innovation and economies of scale will be crucial.
- Infrastructure gaps: The current lack of production, storage, and distribution infrastructure presents a significant hurdle.
- Renewable energy dependency: Scaling green hydrogen production will require an additional 125 GW of renewable energy capacity by 2030.
- International competition: India faces competition from established markets like China and the US, which offer subsidies and have already built extensive hydrogen ecosystems.
- Technological hurdles: Efficiencies in hydrogen production methods and storage technologies need to be enhanced to ensure economic viability.
Seizing the opportunities
Despite these challenges, the hydrogen economy offers immense opportunities.
- Innovation in production: Advanced catalysts, better electrolyzer designs, and more efficient renewable energy integration can drive down production costs.
- Diverse applications: Green hydrogen’s potential spans across transportation, power generation, and industrial processes, opening up vast markets.
- Investment potential: India has already attracted over US$ 70 billion in hydrogen investments, and the market could exceed US$ 100 billion as the ecosystem matures.
- Government support: Through initiatives like the SIGHT program, the Indian government is incentivizing electrolyzer manufacturing and hydrogen production, offering a supportive policy environment for growth.
Moreover, India’s vast renewable energy resources—especially in solar and wind—give the country a significant advantage in producing green hydrogen cost-effectively.
Strategic implementation: Building collaborations for success
Strategic implementation of India’s hydrogen roadmap requires a strong public-private partnership (PPP) model. Collaboration between government, industries, and research institutions will be essential for scaling technologies and developing robust infrastructure. A successful example of such collaboration is ReNew Power’s $3.16 billion green hydrogen project in Kerala.
International collaborations will also play a key role, with India forging partnerships with hydrogen-rich countries such as Japan and Singapore for technology transfer, knowledge sharing, and joint ventures.
Finally, a solid policy framework is vital for hydrogen’s success. Establishing clear standards for green hydrogen production, along with mechanisms like the Contract for Difference (CfD) to bridge market price gaps, will ensure that hydrogen becomes a competitive energy source.
Economic and environmental impact
The widespread adoption of hydrogen energy has the potential to reduce India’s annual greenhouse gas emissions by 50 million tonnes by 2030. This transition will not only contribute significantly to global climate goals but also drive economic growth through job creation, increased energy security, and enhanced industrial competitiveness. Moreover, it aligns with India’s Paris Agreement commitments to limit global warming to well below 2°C, a step critical for the health and wellbeing of future generations.
Conclusion: A clean, green future
Hydrogen energy stands as a critical pillar of India’s clean energy future. The National Hydrogen Mission offers a comprehensive framework to reduce carbon emissions, stimulate economic growth, and establish India as a leader in the global hydrogen economy. By overcoming existing challenges and capitalizing on opportunities in innovation, investment, and international collaborations, India is poised to unlock the full potential of hydrogen energy. The road ahead is exciting, and with sustained efforts, India can achieve its goal of producing 5 MMT of green hydrogen annually by 2030, playing a pivotal role in the global energy transition.
India’s commitment to hydrogen energy is a forward-looking strategy that not only promises a cleaner, greener future for the country but also sets an example for the world in how nations can take bold steps to combat climate change while securing sustainable economic growth.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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