Friday, 17 May, 2024
By: Yash Gupte
Green Hydrogen is produced using electrolysis of water with electricity generated by renewable energy. Image Source: Press Information Bureau
According to the Minister of New and Renewable Energy, India has started to take the lead in adopting green hydrogen.
Hardeep Singh Puri, Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs flagged off the first green hydrogen fuel cell bus from New Delhi’s Kartavya Path on September 25, 2023. The union minister said that 15 green hydrogen buses will be operational in Delhi NCR (National Capital Region) by December. Hardeep Puri flagged off the country’s first hydrogen cell bus in the presence of school children, government officials and media persons and explained the advantages and benefits of using hydrogen as a fuel in the future.
He further added, “The fuel cell utilizes Hydrogen and air to generate electricity to power the bus and the only by-product from the bus is water therefore making it possibly the most environmentally friendly mode of transportation as compared to conventional buses that run on diesel and petrol. With three times the energy density and the absence of harmful emissions, hydrogen shines as a cleaner, more efficient choice to meet the energy requirements.” Speaking at the occasion, Hardeep Singh Puri also expressed that the Government of India has been taking a number of steps to make India a global champion in the production and export of Hydrogen and is set to emerge as a hub for green hydrogen. On this historic occasion, India Tracker takes a look at the major initiatives taken by the government to promote hydrogen, its production and exports in the future and where does India currently stands in the production of hydrogen in comparison to other countries.
He praised Indian Oil for adopting this cooperative strategy with Tata Motors to build domestic solutions for the nation's fuel cell and hydrogen infrastructure. According to Puri, if this project is successful, India may quickly transition from being a net importer of fossil fuels to a net exporter of clean hydrogen energy.
The Indian government is aware of the crucial role that green hydrogen plays and plans to achieve energy independence by 2047 and net zero by 2070. In order to make India a global hub for using, producing and exporting green hydrogen, the Government of India launched the National Green Hydrogen Mission on January 4, 2023. According to the Minister of New and Renewable Energy, India has started to take the lead in adopting green hydrogen. According to him, plans have already been started for the establishment of 3.5 million tonnes of green hydrogen manufacturing capacity under the National Green Hydrogen Mission. "We are able to achieve this because we have established a vast, strong ecosystem for renewable energy, and we now have industries that are global leaders in the ecosystems for solar and wind energy. Nearly 25,000 MW of solar manufacturing capacity already exist, and another 40–50 GW are being built. We are going to emerge as the largest manufacturer of solar cells and modules outside of China.”
Source: Ministry of Petroleum and Natural Gas
The Bharat Petroleum Corporation (BPCL) is planning to establish a 1 megawatt electrolyser manufacturing facility in India by 2025 using the Bhabha Atomic Research Centre’s (BARC) technology for green hydrogen. GAIL India Limited has awarded a contract to set-up one of the largest proton exchange membrane (PEM) Electrolyser. This project will be based on renewable power and has been designed to produce around 4.3 metric tonnes of hydrogen per day (approx. 10 MW capacity).
Green Hydrogen is produced using electrolysis of water with electricity generated by renewable energy. In the end, the carbon intensity is determined by how carbon neutral the power source is; in other words, the more renewable energy is used in the electrical fuel mix, the "greener" the hydrogen produced.
Talking about the National Green Hydrogen Mission (NGHM), it was announced by the Prime Minister Narendra Modi on the 75th Independence Day from the ramparts of the Red Fort with an aim of making India a hub for the production and export of green hydrogen. Chaired by PM Modi, the union cabinet approved the National Green Hydrogen Mission on January 4, 2022. India currently spends more than $160 billion in foreign currency annually on energy imports. Without corrective action, these imports are anticipated to increase over the next 15 years. With this approval, India is now expected to become a global champion in green hydrogen. Apart from making India a leading producer and supplier of Green Hydrogen in the world and reducing the dependence on imported fossil fuels, the NGHM also aims to attract investments and business opportunities for the industry.
It also aims to create more than six lakh jobs and cumulative reduction in fossil fuel imports over Rs One Lakh Crore.
Source: NITI Aayog
The demand for hydrogen, which is primarily used in refineries and to produce ammonia, increased by 17 percent between 2010 and 2018. Due to the global push towards decarbonization, current policy momentum, and improvements in the costs and durability of end-use technologies like fuel cells, hydrogen may provide 7–18 percent of the world's final energy consumption in 2050. As per the International Energy Agency, the need for hydrogen is anticipated to increase by 600 percent by the year 2050.
Rameswar Teli, Union Minister of State for Petroleum & Natural Gas said different steps have been taken by the Ministry of Petroleum & Natural Gas and oil and gas PSUs to promote green hydrogen. By 2024–2025, the oil and gas PSUs hope to reach a production capacity of 230 kilo tonnes annually. In addition, these PSUs have set a production target of 7 lakh tonnes of green hydrogen per annum by the year 2030. Oil India Limited has started a pilot plant in Jorhat, Assam which produces 10 kg of green hydrogen per day.
Source: NITI Aayog
The chart shows that by 2050, hydrogen will me majorly used in transportation, power generation and industry. Hydrogen can be consumed through either direct combustion, electricity generation through fuel cells, or industrial processes to be used as chemical feedstock. Direct use includes industrial processes in iron and steel plants and refineries; transportation fuel for light duty vehicles, buses, trucks, trains, and potentially shipping and aircrafts; and power sector storage and grid balancing and for co-firing in thermal power plants. Hydrogen is essential as a chemical feedstock for the production of ammonia (used in the fertilizer industry), methane, and methanol.
Source: WRI India
Today, China has the maximum capacity of hydrogen production followed by USA. India stands at the third position but recent trends show that the gap between USA and India is diminishing due to India’s push for hydrogen production. India's Green Hydrogen production costs are anticipated to be among the lowest in the world, especially given the potential for renewable energy and the enabling environment provided under the Mission. By 2030, there will likely be a 100 MMT global demand for green hydrogen and its compounds, such as green ammonia. Due to the lack of available land and renewable resources needed to create Green Hydrogen locally, many nations are likely to rely on imports. India might possibly export roughly 10 MMT of green hydrogen/green ammonia annually, with a market share of ten percent.
Though India is planning to maximise the production of green hydrogen, there are some issues which tend to create hurdles in the process. Today, the price of hydrogen produced by electrolysis ranges from about $7/kg to $4.10/kg, depending on the technology chosen and the related soft expenses. This makes it challenging to compete with the price of grey or brown hydrogen as it is currently. However, despite being a net importer of natural gas, India has some of the lowest levelized cost of electricity (LCOE) in the world for solar and wind power. It is more advantageous to increase green hydrogen production in India rather than grey or blue hydrogen production, given the promises of electrolyser cost and LCOE drop.
Therefore, with the sincere efforts taken by the government and significant contribution of private players and industry experts, India can definitely become one of the largest producers and exporters of the green hydrogen in the world.
