Green hydrogen in India can not only offer energy to sectors such as fertilizers, chemicals, refining, and iron, but it can also reduce carbon emissions when compared to fossil fuels, according to the World Economic Forum.
The paper stated, “Green hydrogen can enable energy transition as India takes its net-zero journey towards 2070 while supporting its growing energy needs.” Green hydrogen, or hydrogen created through water electrolysis and powered by renewable energy, is seen as a clean, flexible, and versatile energy carrier that can also assist in addressing the tension between energy supply and climate change.
India is currently the world’s third-largest economy in terms of energy consumption, and its energy demand is expected to rise. Demand is expected to climb by 35% by 2030.
India’s energy import bill is expected to be USD 185 billion in 2022, a figure that will undoubtedly rise if the country continues to meet its expanding energy demand using traditional ways. At the same time, India committed to achieving net zero emissions by 2070 at the United Nations Climate Change Conference in Glasgow (COP26), which will take place in 2021.
The government established the National Green Hydrogen Mission in early 2022 to increase green hydrogen production and consumption through incentive funds totalling around USD 2.3 billion to be distributed between 2022 and 2030.
Currently, India generates 6.5 million metric tonnes of hydrogen per year (MMTPA), primarily for use in crude oil refineries and fertilizer manufacturing. The majority of the country’s present hydrogen supply is grey hydrogen, which is created using fossil fuels in a process that produces CO2 emissions.
Green hydrogen production necessitates a large amount of renewable energy for the electrolysis process. India’s renewable energy resources can help it achieve its ambitions for green hydrogen growth, but it requires quick capacity expansion.
Furthermore, there is little on-the-ground traction for green hydrogen in the country, with key stakeholders indicating that the majority are in a “wait-and-watch” mode. Green hydrogen generation is predicted to increase significantly beginning in 2027 and continuing beyond.