Green Hydrogen: A beacon for India's clean energy transition

As the global climate crisis deepens, nations worldwide are pledging to achieve net zero carbon emissions. The 27th Conference of the Parties (COP27) has been a beacon of direction, shifting focus from lofty promises to actual implementation of decarbonisation strategies. As part of this global initiative, India set a target at the COP26 meeting in November 2021 to become net-zero by 2070.

While renewable energy technologies can successfully tackle emissions from the electricity sector, the more hard to abate industrial emissions - almost 30% of India's total (excluding transport) - call for innovative decarbonisation strategies. One promising solution lies in the green variant of the most abundant element in the universe - Hydrogen.

Presently, Hydrogen primarily serves as a feedstock in manufacturing processes. Its production mostly involves burning fossil fuels such as natural gas or coal, causing significant carbon emissions. Despite the substantial share of grey Hydrogen usage in industries like refining and fertiliser production, transitioning to green Hydrogen encounters hurdles due to concerns over commercial viability.

The adoption of green Hydrogen in the steel and cement industries, in particular, faces financial viability issues, lengthy asset replacement cycles, and challenges in retrofitting existing plants. Furthermore, the absence of a consumer premium for using low or zero-carbon energy in manufacturing exacerbates the problem.

The progress and adoption of green Hydrogen will hinge on several factors, including declining production costs, technological advancements, and evolving policies. Initial demand will likely emerge from industries with high transition readiness and simpler asset replacement. Over time, the use of green Hydrogen will evolve based on economic considerations, technological breakthroughs, policy directives, and regulatory mandates.

To spur the transition, the Government of India (GOI) has approved the National Green Hydrogen Mission, backed by an initial outlay of INR 19,744 crore. The incentives will primarily come in the form of Production Linked Incentive (PLI) for electrolyser manufacturing and direct subsidies for green Hydrogen production.

Despite these initiatives, the production and use of green Hydrogen also bring logistical challenges. Its storage and transportation are complex and contribute significantly to the overall cost. As such, industries that can directly use Hydrogen might prefer localised production to bypass these transportation hurdles.

Hydrogen's versatility as an "energy vector"— a molecule that can produce, store, and carry energy in various forms— presents a myriad of potential applications. However, this diversity also introduces a wide array of technical, economic, and policy challenges that need careful consideration while shaping future regulations and policies.

With its multiple applications and potential for a cleaner future, green Hydrogen is set to revolutionise India's energy landscape. How well governments lead this transition and the subsequent impact on energy geopolitics will indeed be intriguing to witness. This clean energy beacon has the potential to be a game-changer in the race against climate change.