Countries around the world are facing a shared challenge: a long-term mission for sustainability. To get there, countries will have to delicately balance present-day needs with long-term obligations, including energy security, economic growth, and climate change mitigation.
For India, this includes the journey to net zero by 2070 and to becoming the third-largest economy in the near term. It is imperative to both that it prioritizes climate change mitigation and drastically reduces its carbon footprint. As a result, the need for cleaner and more efficient energy sources has never been more critical.
In this regard, green hydrogen presents a golden opportunity to lead the charge.
Green hydrogen has been lauded as a key energy source for several reasons:
Clean Energy Transition: Green hydrogen is a game-changer in India’s transition to cleaner energy sources. With an ambitious target of achieving 450 GW of renewable energy capacity by 2030, harnessing surplus energy for green hydrogen production is a logical step. It offers a means to store excess renewable energy, assisting grid stability and reducing curtailment issues.
Energy Security: India’s heavy reliance on fossil fuel imports poses a significant economic and strategic risk. By investing in green hydrogen production, India can reduce its dependence on imported energy sources, bolstering energy security and self-reliance.
Job Creation: Developing a green hydrogen ecosystem can generate employment opportunities in research, manufacturing, infrastructure development, and various downstream industries.
Industrial Decarbonisation: Green hydrogen can play a crucial role in decarbonizing energy-intensive industries like steel, cement, and chemicals, which continue to be vital to India’s economic growth. By substituting hydrogen produced from fossil fuels, these industries can significantly reduce their carbon footprint.
By embracing green hydrogen, India can position itself as a global leader in clean energy technologies. At the same time, the nation can export its expertise and related technologies (and of course surplus green hydrogen) thereby boosting the economy and its international standing.
India has approximately 80% import dependency on crude oil, for instance, making it heavily reliant on other nations for its energy needs. Green hydrogen has the potential to help India reduce this import dependency on fossil fuels by providing an indigenous and theoretically infinite source of energy.
Earlier this year, on 4 January 2023, the Government of India launched the “National Green Hydrogen Mission” with a budget of approx. INR 20,000 crore/GBP 2 billion. This program intends to boost annual green hydrogen production capacity to at least 5 million tonnes and the addition of 125 GW of renewable energy capacity by 2030.
The existence of a strong domestic consumption market would aid in the advancement of green hydrogen. A recent UKIBC report anticipates green hydrogen demand to reach 2.85 million tonnes by 2030 as industries transition to cleaner fuels.
Currently, India produces about 6 million tonnes of hydrogen every year. This hydrogen is produced from fossil fuels and is mostly used in the production of ammonia for fertilizers and petroleum refining. Due to its abundance of wind and solar resources, India is well-placed to explore and invest in greener fuels, including green hydrogen.
