Green Hydrogen

The Green Hydrogen Mission, spearheaded by the Ministry of New and Renewable Energy (MNRE), is set to significantly advance India's green hydrogen capabilities. The Strategic Interventions for Green Hydrogen Transition (SIGHT) Program is increasing its green ammonia production capacity from 550,000 to 750,000 tonnes annually, with an initial financial outlay of ₹17,490 crore. This increase will be auctioned through e-bidding, with the resulting green ammonia allocated to fertilizer companies. Green hydrogen, produced via electrolysis using renewable energy sources such as wind or solar, offers a clean and versatile energy source. It has applications in transportation (fuel cell vehicles), industry (feedstock for chemicals and steel), and energy storage. By 2030, the green hydrogen sector is expected to produce at least 5 million metric tonnes annually, add 125 GW of renewable energy capacity, create over 600,000 jobs, and cut fossil fuel imports by over ₹1 lakh crore. Additionally, it is projected to reduce greenhouse gas emissions by approximately 50 million metric tonnes annually. Despite its potential, scaling up green hydrogen production faces challenges such as high initial investments, costly electrolyzers, limited infrastructure, and competitive global markets. Efforts to overcome these obstacles include the National Green Hydrogen Mission, which targets a substantial increase in production capacity, and international collaborations like the Hydrogen Council, which promotes hydrogen as a key low-carbon solution. To support this transition, it is crucial to improve policy frameworks, integrate more renewable energy, develop necessary infrastructure, foster industry collaboration, and focus on skill development. These measures are essential for advancing green hydrogen as a viable alternative in the global energy market.

• The MNRE has raised the yearly allotment for the production of green ammonia from 5, 50,000 to 7, 50,000 tonnes.
• The whole capacity of green ammonia that is available for production and supply will be put up for bid via an e-bidding and e-Reverse Auction procedure.
• The fertiliser companies will get the resulting green ammonia.

Financial Outlay: The initial outlay for the SIGHT Programme is ₹17,490 crore.

• Domestic Manufacturing of Electrolysers: To encourage the production of electrolysers domestically, financial incentives are offered.
• Green Hydrogen Production: Incentives also encourage the production of green hydrogen.

• At least 5 million metric tonnes (MMT) of green hydrogen should be produced annually.
• Add approximately 125 GW of renewable energy capacity.
• Create over 6 lakh jobs.
• Reduce fossil fuel imports by over ₹1 lakh crore.
• Reduce yearly greenhouse gas emissions by around 50 MMT.

• Clean Energy Source: Produced using renewable electricity (e.g., wind, solar) through electrolysis, generating hydrogen (H2) from water without carbon emissions. Electrolyzers can achieve efficiencies of up to 80-90.
• Versatile Applications: Used in industry (e.g., refining, chemicals), transportation (e.g., fuel cell vehicles), and power generation (e.g., grid balancing, energy storage). Example: Germany's GET H2 initiative aims to develop a hydrogen infrastructure for industrial and mobility sectors.
• Energy Transition Catalyst: Facilitates integration of renewable energy into sectors traditionally reliant on fossil fuels, reducing dependency on imported fuels.
• Export potential: Australia's National Hydrogen Strategy targets hydrogen exports to Asia, aiming to build a hydrogen export industry by 2030.
• Economic Potential: Global hydrogen market could reach $2.5 trillion by 2050, with green hydrogen playing a crucial role in this growth.
• Technological Advancements: Research focuses on improving electrolyzer efficiency and reducing production costs.
• International Initiatives: Countries like Germany, South Korea, and China have announced substantial investments and hydrogen strategies to accelerate deployment. Example: South Korea's Hydrogen Economy Roadmap targets 6.2 million fuel cell vehicles and 15 GW of hydrogen production capacity by 2040.
• Job Creation and Economic Benefits: Investments in green hydrogen infrastructure are expected to create millions of jobs in manufacturing, construction, and operations globally. For example, the European Clean Hydrogen Alliance aims to create 1 million jobs and generate €140 billion in annual revenue by 2030.

• Transportation: Green hydrogen can power fuel cell electric vehicles (FCEVs) and heavy-duty trucks. For example, Germany’s Alstom CoradiaiLint trains run on hydrogen fuel cells.
• Industry: Industries like steel, ammonia, and chemicals can use green hydrogen as a feedstock or for heating processes.
• Energy Storage: Hydrogen can store excess renewable energy for later use, helping balance the grid.
• Power Generation: Hydrogen can be burned in gas turbines or used in fuel cells to generate electricity.

• High Initial Investment: Electrolyser costs are a significant barrier, with current prices around $800-$1,200 per kW.
• Technological Maturity: Current electrolyzer efficiency ranges from 60% to 80%, impacting overall hydrogen production costs. Indian companies like Greenko and NTPC are exploring partnerships with international firms.
• Cost Competitiveness: Green hydrogen production costs are currently higher than grey or blue hydrogen. The cost of green hydrogen production in India is estimated to be around $3-$6 per kg, compared to $1-$2 per kg for grey hydrogen.
• Infrastructure Development: Limited hydrogen refueling stations and storage facilities.
• Policy and Regulatory Framework: Lack of specific policies and incentives for green hydrogen production and consumption.
• Skill Development: Training programs and collaborations with technical institutions are necessary to build a skilled workforce for the hydrogen sector.
• Global Competition: Global advancements in green hydrogen production and export markets pose competition. The European Union's Hydrogen Strategy plans to install 40 GW of electrolysers by 2030.

• National Green Hydrogen Mission: Established on January 4, 2023, the mission aims to increase the capacity of green hydrogen generation to at least 5 million metric tonnes annually by 2030.
• Hydrogen Council: A global initiative promoting hydrogen as a key solution for a low-carbon future.
• The Green Hydrogen Catapult: A partnership of market leaders for green hydrogen, supported by the UN High-Level Climate Champions and RMI.
• Green Hydrogen for Scotland: A project aiming to produce hydrogen from offshore wind energy.

• Policy Framework: Rationalisation of green hydrogen regulations, and certification standards to generate the demand and attract investments. For example, Green Energy Open Access Rules (GOAR)-2022.
• Financial Support: In addition to debt and equity financing, one may investigate green financing solutions such as Sovereign Loans and Green Bonds.
• Renewable Energy Integration: Increasing share of solar/wind power for electrolysis-based hydrogen production.
• Infrastructure Development: Creating a comprehensive infrastructure network of Green Hydrogen Hubs and refuelling stations to address the green hydrogen supply chain issues.
• Intra-industry collaboration: Engage diverse energy related sectors (steel, transport, and fertiliser) for adoption and utilisation of low cost green hydrogen.
• Focus on skill development: Through skilling, upskilling and reskilling of trained workforce in hydrogen technologies.
• International cooperation and collaboration: Collaborate globally on knowledge sharing and technology advancement.

In embracing green hydrogen, India pioneers a sustainable energy future, surmounting initial hurdles with technological advancements and strategic investments to lead in global decarbonization efforts and economic transformation.