India’s Ambition to be an Export Hub of Green Hydrogen

Syllabus: GS3/Energy

Context

• Solar Energy Corporation of India Ltd (SECI), under the Ministry of New and Renewable Energy, signed a MoU with H2Global Stiftung to establish a collaborative framework to promote Green Hydrogen initiatives. 

About MoU: Key Points 

• Aim:
  • to enhance knowledge exchange on market-based mechanisms, 
  • foster cooperation between India and importing countries, 
  • eventually contributing to the global advancement of the green hydrogen economy.
• This collaboration offers India the opportunity to structure joint tenders that aligns with India’s ambition to become export hub of Green Hydrogen and its derivatives. 
• India has announced a target of energy independence by 2047 and a net-zero by 2070.
  • Green Hydrogen is expected to play a substantial role towards achieving these goals.

Hydrogen Element

• Hydrogen is the chemical element with the symbol H and atomic number 1. 
• Hydrogen is the lightest element and the most abundant chemical substance in the universe, constituting roughly 75% of all normal matter.
• It is colorless, odorless, tasteless, non-toxic, and highly combustible gas.

Extraction of Hydrogen

• Hydrogen exists in combination with other elements. 
• Hence, for using it as a source of energy, it has to be extracted from naturally occurring compounds like water (which is a combination of two hydrogen atoms and one oxygen atom). 
• Green hydrogen refers to hydrogen that is produced using renewable energy sources, such as wind, solar, or hydropower, through a process called electrolysis. 

• Electrolysis involves splitting water (H2O) into hydrogen (H2) and oxygen (O2) using an electric current. 
• When this electricity comes from renewable sources, the hydrogen produced is considered “green” because the overall process has a minimal environmental impact.

• Grey Hydrogen: It involves extracting hydrogen from natural gas through a process called steam methane reforming (SMR). 
  • This process releases carbon dioxide (CO2) as a byproduct, contributing to greenhouse gas emissions. 
• Blue Hydrogen: It involves capturing and storing the CO2 emissions generated during the production of hydrogen from natural gas.

Significance of Green Hydrogen

• Zero Emissions: The production emits no greenhouse gases or pollutants, making it a zero-emission energy carrier.
• Energy Storage: Green hydrogen can serve as a means of storing excess renewable energy generated during periods of low demand for later use, helping to balance the grid and enhance energy security.
• Versatile Applications: Hydrogen can be used as a fuel in various sectors including transportation, industry, and heating. 
• Economic Opportunities: The transition to green hydrogen presents significant economic opportunities, including job creation, investment in new infrastructure, and the growth of related industries such as electrolyzer manufacturing and hydrogen fuel cell technology.
• Climate Mitigation: Replacing fossil fuels with green hydrogen can reduce carbon emissions and contribute to global efforts to mitigate climate change. 

India’s Progress and Goals Towards Green hydrogen

• India’s commitment to achieving net-zero emissions by 2070 includes a strong focus on green hydrogen. 
• The country aims to produce 5 million metric tons of green hydrogen by 2030, requiring a $100 billion investment and 125 gigawatts of new renewable energy capacity. This aligns with the Prime Minister’s Panchamrit plan, which also targets 500 GW of non-fossil energy capacity by 2030.
  • Hydrogen demand in India is expected to grow to 29 million metric tons per year by 2050.
• Demand: Green hydrogen demand in India is projected to exceed 27.2 million tonnes per annum (MTPA) by 2050, primarily led by industries such as steel, fertilisers, refineries and road transportation applications.
• Employment Generation: According to the International Renewable Energy Agency (IRENA), the green sector employed 11 million people in 2018, with projections of over 42 million jobs by 2050, highlighting its potential to create new industries and jobs. 

Factors Contributing to India’s Vision of to be a Export Hub

• Easy to Transport: Green hydrogen is easier to transport than gaseous hydrogen, and offers a practical solution for longdistance energy trade.

• Ports: The strategic location of hydrogen production facilities along India’s coastline — in states like Odisha, Maharashtra, and Gujarat — facilitates this export-oriented approach.
  • These facilities are advantageously near port infrastructure, simplifying the logistics of international trade while serving sizable domestic markets within the same geographic regions. 
• This dual focus supports India’s broader energy independence goals and integrates with global hydrogen supply chains. 

 Challenges

• Risks associated with the transportation: Hydrogen in gaseous form is highly inflammable and difficult to transport, thereby making safety a primary concern.
• Higher Cost: Green hydrogen production is currently more expensive than conventional methods, primarily due to the high cost of renewable energy sources and electrolysis technology. 
• Lack of fuel station infrastructure: India will need to compete with around 500 operational hydrogen stations in the world today which are mostly in Europe, followed by Japan and South Korea.

Green Hydrogen Initiatives 

• The Bureau of Energy Efficiency (BEE), under the Union Ministry of Power, has been appointed as the nodal authority for accrediting blending operations.
• The Global Biofuel Alliance seeks to establish global standards for hydrogen from biomass.
  • It is an initiative by India as the G20 Chair, bringing together the biggest consumers and producers of biofuels to drive development and deployment of biofuels.
• National Green Hydrogen Mission (NGHM): It was launched in 2023, it aims to increase production of green hydrogen to 5 million metric tonnes by 2030, meeting 40% of domestic demand. 
• National Hydrogen Energy Mission (NHEM): NGHM is a part of National Hydrogen Mission (NHM).
  • Objective: To make India a global hub for the production and export of green hydrogen.
• Production-Linked Incentive (PLI) Scheme for Green Hydrogen: It aims to boost the production of green hydrogen in India and attract investments in the sector.
• Green Hydrogen Policy: Several states in India have been working on formulating green hydrogen policies to attract investments and promote the development of green hydrogen projects.
• Hydrogen Energy Roadmap: India’s Hydrogen Energy Roadmap was developed by the Ministry of New and Renewable Energy (MNRE) and approved in 2021.
  • Objective: The roadmap aims to accelerate hydrogen production from renewable sources and make India a key player in the global hydrogen market.
• Public-Private Partnerships (PPP): Several PSUs (Public Sector Undertakings) like NTPC, Indian Oil Corporation (IOCL), and Indian Renewable Energy Development Agency (IREDA) have been tasked with leading green hydrogen pilot projects and scaling up production.
• International Collaboration: Collaborations with countries and organizations that have advanced in hydrogen technologies aim to facilitate knowledge transfer and technology adoption.

Future Prospects

• Looking forward, India’s approach to integrating green hydrogen into its energy system is multi-faceted.
  • It involves enhancing production capabilities, building out infrastructure, establishing robust regulatory frameworks and market incentives to encourage adoption. 
• By aligning these elements, India can effectively transition to a low-carbon economy, reducing its dependence on fossil fuels and positioning itself as a leader in the emerging global hydrogen economy. 
• India’s green hydrogen venture holds promising potential for energy transformation, both domestically and globally

Source: PIB