Green Hydrogen Projects in India

19 December 2024 | 213 Views | By Mint2Save

Green hydrogen is poised to play a pivotal role in transforming India’s transportation sector. Initiatives to develop hydrogen-powered buses, trains, and trucks are already underway. The Indian Railways has also announced plans to introduce hydrogen-powered trains by 2030, further reducing the carbon footprint of the transportation sector. Let’s dive deeper into the concept of Green hydrogen and how India plans to get to another level by leveraging this power to smoothen its finance.

India’s Leap Towards a Green Hydrogen Economy

In the heart of Asia, where energy demand is soaring and environmental concerns are pressing, India is carving out a niche in the global green hydrogen landscape. The nation, with its ambitious climate goals and burgeoning industrial sectors, is aggressively pushing for the adoption of green hydrogen as a pivotal component of its energy strategy. Here, we delve into the transformative journey of India’s green hydrogen projects, highlighting the initiatives, challenges, and potential impact on India’s path to sustainability.

The National Green Hydrogen Mission

Launched with considerable fanfare in 2023, the National Green Hydrogen Mission (NGHM) marks India’s strategic pivot towards becoming a global hub for green hydrogen production and utilization. With an initial outlay of ₹19,744 crore, the mission aims to produce 5 million metric tonnes (MMT) of green hydrogen per annum by 2030, accompanied by an additional renewable energy capacity of 125 gigawatts (GW). This initiative is not just about reducing carbon emissions but also about fostering energy independence by reducing dependence on fossil fuel imports, which cost India a hefty sum annually. Read: Correlation and Causation: Untangling the Threads of Influence

Strategic Interventions for Green Hydrogen Transition (SIGHT)

Integral to the NGHM is the SIGHT program, designed to incentivize both the production of green hydrogen and the manufacturing of electrolyzers. The scheme has attracted significant interest from companies like Reliance Green Hydrogen, which has actively engaged in bidding for production incentives. Under the second tranche of the SIGHT scheme, 14 firms, including major players like Reliance, ReNew Power, and Waaree, have submitted bids, aiming to leverage benefits that could reach up to ₹5,400 crore over three years. This competitive bidding not only stimulates innovation but also pushes for scalability in green hydrogen production.

Major Green Hydrogen Projects in India

Several public and private sector entities have announced ambitious green hydrogen projects to capitalize on the emerging opportunities. Here are some noteworthy initiatives:

Reliance Industries Limited (RIL): RIL, India’s largest private sector company, has committed $10 billion toward renewable energy and green hydrogen initiatives. The company aims to produce green hydrogen at under $1 per kilogram by 2030. RIL is also setting up a state-of-the-art electrolyzer manufacturing facility in Jamnagar, Gujarat.
Adani Group: The Adani Group has pledged $50 billion over the next decade to develop green hydrogen projects. It plans to establish one of the world’s largest integrated green hydrogen ecosystems, leveraging its renewable energy portfolio.
Indian Oil Corporation Limited (IOCL): IOCL, in collaboration with other public sector undertakings (PSUs), is working on establishing green hydrogen production units at its refineries. The company has also partnered with NTPC Limited to explore renewable energy-powered hydrogen production.
Greenko and John Cockerill: Greenko, a renewable energy firm, has partnered with John Cockerill, a global leader in electrolyzer technology, to establish one of India’s largest electrolyzer manufacturing units in Telangana.
Gujarat and Rajasthan Projects: Both states have emerged as green hydrogen hubs due to their favorable policy environment and renewable energy resources. Gujarat has announced plans for hydrogen valleys, while Rajasthan is attracting investments for large-scale solar and wind-to-hydrogen projects.

Despite the enthusiasm, the path to a green hydrogen economy is strewn with challenges. The primary concern is the cost of production; green hydrogen currently stands at about $4–5 per kilogram, significantly higher than grey hydrogen, which is derived from natural gas. Reducing this cost to around $2 per kilogram is essential for economic viability, necessitating advancements in renewable energy costs and electrolyzer efficiency. Additionally, the infrastructure for storage, distribution, and consumption of hydrogen needs extensive development. Hydrogen’s unique properties, like its high flammability, require stringent safety protocols and specialized equipment, which add to the initial capital outlay.

Challenges in Scaling Green Hydrogen

Like every new technology, green hydrogen also has its challenges, that will keep on evolving, as the technology is scaled.

High Production Costs: The cost of green hydrogen production, primarily due to the high price of electrolyzers and renewable energy, is currently higher than that of grey hydrogen.
Infrastructure Gaps: A robust supply chain, including storage and transportation infrastructure, is essential for scaling green hydrogen adoption.
Technological Limitations: Electrolyzer technology is still evolving, and achieving economies of scale remains a challenge.
Policy Uncertainty: While the government has announced ambitious targets, consistent policy support and clarity on regulations are crucial.
Water Scarcity: Electrolysis requires substantial amounts of water, which could be a concern in water-stressed regions of India.

Impact on Industry and Environment

The adoption of green hydrogen could revolutionize several sectors. In steel manufacturing, green hydrogen can replace coal in direct reduced iron (DRI) processes, significantly cutting down carbon emissions. The transport sector sees potential in hydrogen fuel cells, especially for heavy-duty vehicles where battery solutions might not be as feasible. The maritime industry in India is also exploring green hydrogen to meet international emission standards, given that shipping contributes a notable amount to global CO2 emissions.

From an environmental perspective, if India scales up to its 2030 target, it could abate nearly 50 MMT of annual greenhouse gas emissions, contributing substantially to its net-zero by 2070 commitment. This shift could also lead to a reduction in India’s fossil fuel import bill, thereby enhancing energy security and economic savings.

Societal and Economic Implications

The green hydrogen push is not just about environmental benefits; it’s also about socio-economic transformation. The development of green hydrogen infrastructure promises job creation across various skill levels – from technical roles in new industries to positions in research, development, and maintenance of hydrogen facilities. The mission aims to generate over 600,000 jobs, tapping into India’s demographic dividend while promoting sustainable livelihoods.

Looking Ahead

India’s green hydrogen narrative is one of ambition, innovation, and strategic foresight. The country is at a critical juncture where policy, technology, and industry converge to forge a sustainable future. However, the success of these projects will hinge on global cooperation, especially in technology transfer, and the continuous evolution of green hydrogen technologies both domestically and internationally.

As India navigates through these challenges, it remains a case study of how emerging economies can lead in green technology while balancing growth with sustainability. The green hydrogen story in India might just be beginning, but its implications are vast, potentially setting a benchmark for the world in the clean energy paradigm.

In conclusion, India’s green hydrogen projects are a testament to its commitment to combat climate change while fostering economic growth. With strategic investments, policy support, and a focus on innovation, India is poised to become a significant player in the global green hydrogen market, potentially leading the charge towards a more sustainable and energy-secure future. Read more: Understanding the Gini Index: Measuring Income Inequality