What is Green Hydrogen
National Green Hydrogen Mission (NGHM):
- The objective of the programme is to promote industrial green hydrogen production and make India a net exporter of the fuel. The Mission will encourage the growth of the market for green hydrogen, as well as its creation, consumption, and export.
NGHM Sub-Programs:
- Strategic Interventions for the Program for the Transition to Green Hydrogen (SIGHT) It will generate clean hydrogen and offer money for domestic electrolyser manufacture.
- It will be determined which states and regions can support extensive hydrogen production and/or consumption, and these places will be developed into Green Hydrogen Hubs.
- The nodal ministry for the programme is the Union Minister of New and Renewable Energy (MNRE).
The significance of green hydrogen for India:
- India has promised that as part of its nationally decided contributions, it will produce 50% of its electricity from non-fossil sources by 2030. (NDC under the Paris climate agreement). However, the industrial sector must transition to a more energy-efficient model. The industries in India that emit the greatest greenhouse gases are steel, cement, fertilisers, and petrochemicals.
What is green hydrogen?
- Hydrogen and oxygen must be separated from water, which requires a lot of energy. When this energy is obtained from non-fossil, renewable sources, we obtain green hydrogen. It can serve as a carrier and an energy source (for heavy industry, long-distance travel, flying, and power storage), all at the same time (as green ammonia or blended with natural gas).
- Green hydrogen holds the promise of fostering industrial growth while also reducing industrial pollutants. Due to its large wind energy resources and an abundance of sunshine, India is geographically lucky to become one of the lowest-cost producers of green hydrogen.
- India intends to produce at least 5 million tonnes (MTs), more than any other nation, by 2030.
There would be increased demand for:
- A fleet of electrolyzers with a capacity of 60–100 GW and 100–125 GW of renewable energy.
- There is an investment opportunity of Rs. 8 lakh crore.
- Decrease annual emissions by 50 MMT.
Moving ahead:
- Industry and the government must collaborate on five objectives for the vision to become a reality.
Domestic Demand:
- If we are not a significant player at home, we cannot be a significant player in the global market. The mission introduces the Strategic Interventions for Green Hydrogen Transition (SIGHT) fund, which for 5 years at a cost of Rs. 13,000 crore would directly assist the usage of green hydrogen. Because of the increase in demand for heavy industries, suppliers will be able to charge less because of economies of scale.
- Another tactic is to use government procurement as leverage. Can India, the second-largest steel producer in the world, work to lead the pack of green steel producers? Although the cost of green steel, which is made from green hydrogen, is currently significantly higher, it might be reduced with improved manufacturing efficiency and technological breakthroughs.
Attracting foreign investment:
- In comparison to other countries, India has far less declared or ongoing green hydrogen generating activities. Green hydrogen transportation is difficult and expensive. Green hydrogen centres with integrated production, consumption, and export are what are intended. A mission secretariat can make sure that project clearance is accelerated and reduce financial risks to entice FDI and FII into the industry.
Putting value enhancement first:
- And last, the SIGHT fund’s performance-linked incentive (PLI) scheme contributes Rs. 4,500 crore to the manufacture of electrolysers. Currently, manufacturers import stacks and assemble them. We must increase our degree of competitiveness in the manufacture of the most significant and priceless electrolyser components in India with targeted public funding.
- Electrolyser technology must be improved in order to meet stringent application requirements, better efficiency goals, the capacity to use non-freshwater, and the ability to substitute necessary minerals.
Form bilateral partnerships to create resilient supply chains:
- Globally, there have been over 63 bilateral alliances, with Germany, South Korea, and Japan having the most. Using loans denominated in yen or euros, respectively, for sales to Japan or the EU, could reduce our cost of capital and increase our export competitiveness. 400 crores are allocated for research and development by the mission, which can be utilised to entice private funding for collaborative technical advancement. Indian companies should consider partnering on initiatives in countries with an abundance of renewable energy sources and accessible financing.
The creation of a global framework for green hydrogen:
- India must work with other major economies to develop legislation for a global green hydrogen economy. Without it, groups of private companies instead of official intergovernmental processes are in charge of endeavours to develop rules and standards. Protectionist policies and conflicting regulations are already showing up in significant markets. This put India’s goals in danger.
Conclusion:
- During India’s G20 presidency, there is a potential to create rules for a global green hydrogen economy. Green hydrogen will play a significant role as an industrial fuel in the 21st century. India is in a good position to lead, both for the good of the world and for the sake of our common goals.
