India aims to lead Green Hydrogen in 7 years
National Green Hydrogen Mission is a multifaceted long-term programme that aims to support the industry from scratch until global status
The Indian government approved the National Green Hydrogen Mission today with an initial outlay of Rs.19,744 crore, including funds for R&D.
The mission, which was announced by PM Modi on 15 August 2021, is a mega programme aiming to make India a leader in production, utilization and export of Green Hydrogen and its derivatives. Once successful, it could help India be completely energy independent, and turn it into a trade-surplus country, likely permanently.
At present, several countries, namely Japan and South Korea are in advanced stages of use of hydrogen as a fuel in next generation vehicles. However, India is looking at being the leader in the long-term, given its advantages in renewable resources of energy that are important to produce “Green” Hydrogen.
What is Green Hydrogen?
- Liquid hydrogen produced from electrolysis of water using renewable sources
- Fully clean fuel that produces only water after combustion
- Could be a better option for vehicles than conventional fossil fuels
- Refueling is as easy and quick as fossil fuels unlike electric vehicles (EV)
- Safer alternative fuel
- Next big thing in future of fuels
The government said by 2030, it expects:
- Development of Green Hydrogen production capacity of at least 5 MMT (million metric tonne) per annum with an associated renewable energy capacity addition of about 125 GW
- Over Rs. 8 lakh crore in total investments
- 6 lakh jobs
- Cumulative reduction in fossil fuel imports over Rs. 1 lakh crore
- Abatement of nearly 50 MMT of annual greenhouse gas emissions
The opportunity
- US$8bn market in India by 2030
- Hydrogen demand could grow more than fourfold by 2050
- About 10% of global demand
- Huge downstream market
- Fulcrum of green economy
- Significant reduction in dependence on fossil fuels
- All major PSUs in race to lead
Other likely benefits include:
- Export opportunities for Green Hydrogen and its derivatives;
- Decarbonisation of industrial, mobility and energy sectors, including fertilisers, O&G and other hard-to-abate sectors;
- Reduction in dependence on imported fossil fuels and feedstock;
- Development of indigenous manufacturing capabilities and cutting-edge technologies
According to NITI Aayog, Green Hydrogen could drive India’s economic growth for decades and critical to achieve its net-zero ambitions by 2070. Amitabh Kant, CEO NITI Aayog, said, India could emerge as the least cost producer and bring down the price of Green Hydrogen to US$1 per kg by 2030, given its advantages in low-cost renewable electricity.
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