Green Hydrogen Industry in India 

Do you ever wonder what the world would be like if the energy we use doesn’t negatively impact the environment? It is possible if we aim to achieve a net zero carbon footprint. The climate crisis is now a reality, and addressing it is the need of the hour. Green hydrogen presents a solution to all the problems mentioned.

In this blog, we will discuss the significance of green hydrogen as a solution to the climate crisis. Moreover, we will explore the National Green Hydrogen Mission launched by the Government of India, favorable factors and challenges facing the industry and its future outlook.  

What is Green Hydrogen?

Green hydrogen is a type of renewable energy generated through the electrolysis of water to release hydrogen and oxygen. The carbon footprint of green hydrogen depends indirectly on the source of electricity. 

Overview of the Green Hydrogen Industry in India

The green hydrogen industry is still in its nascent stage in India, with many big players announcing that they will start operations in this industry in the near future. India’s green hydrogen market is expected to be valued at $8 billion by 2030 and $340 billion by 2050.

India aims to become energy-independent by 2047 and achieve net zero emissions by 2070. To accomplish this, India must invest in renewable sources of energy, and green hydrogen is one way to achieve this. India launched the “National Green Hydrogen Mission” on 4 January 2023 with an initial outlay of INR 19,744 core. Let’s explore more about this mission.

National Green Hydrogen Mission

The National Green Hydrogen Mission was launched in 2023 with the aim of reducing the carbon footprint and being more environmentally responsible. It has the following objectives by 2030:

• Establish India as the leading producer and exporter of Green Hydrogen.
• Reduce the import of fossil fuels worth over 1 lakh crore.
• Developing manufacturing capabilities to achieve a production capacity of at least 5 million metric tonnes (MMT) per annum.
• Creating 6 lakh employment opportunities in the green hydrogen sector.
• Providing financial assistance to R&D projects.
• Reduction of nearly 50 MMT of annual greenhouse gas emissions.

Key Project Announcements by Major Indian Companies

Indian companies have realized the potential growth in the green hydrogen sector and now wish to expand their operations in this sector. Some key project announcements were:

• Reliance Industries aims to become a net carbon-zero firm by 2035 and to achieve this; it plans to invest Rs. 750 billion in renewable energy projects.
• Gas Authority of India (GAIL) inaugurated a 10 MW green hydrogen plant in Madhya Pradesh.
• National Thermal Power Corporation will build India’s largest green hydrogen plant in Vizag.
• Indian Oil Corp, Larsen & Toubro and ReNew Power have agreed to start a joint venture to develop green hydrogen manufacturing facilities.

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Favorable Factors for the Green Hydrogen Industry in India

Numerous factors will help India to become a global leader in the green hydrogen industry. Some of these factors are:

• Cost Advantage: India will attract investors due to lower production costs.
• Large Workforce: India has a large working population.
• Government Backing: A favorable regulatory landscape will attract investments.
• Export Opportunity: India aims to produce green hydrogen not just for itself but also for exporting it.

Challenges for the Green Hydrogen Industry

The green hydrogen industry faces the following challenges in the near future:

• High Costs: Currently, green hydrogen manufacturing is quite expensive, making the fuel cost not competitive with regular fuels in many markets.
• Technological Challenges: In order to make green hydrogen cost-efficient, innovative technologies need to be developed.
• Source of Electricity: The electricity used in the electrolysis of water to generate green hydrogen needs to be sourced from renewable sources of energy such as solar energy, wind energy, etc. If the electricity used is generated from fossil fuels, then it doesn’t help in reducing carbon footprint.

Future of Green Hydrogen Industry In India

The future of the green hydrogen industry is looking bright in India due to the following reasons:

• Production Goals: India plans to make 5 million tonnes of green hydrogen each year by 2030, which will help it move towards clean energy.
• Investment: Big companies like Reliance, GAIL, NTPC are putting billions into this, speeding up growth and new tech.
• Government Support: The Government of India has launched the National Green Hydrogen Mission, which will attract investments due to the favorable regulatory environment.
• Global Leadership: India is set to become a top player worldwide in making green hydrogen, cutting down on carbon emissions.

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Conclusion

Green Hydrogen is an exciting sector to watch out for in the future. The government plans to make India the green hydrogen hub by 2030 through policy support and technological advancement to elevate the nascent green hydrogen sector. Increasing demand for clean energy and policy-related support will help firms increase their revenues in the future.

With many prominent companies entering the sector, the future does seem bright, but the way these companies deal with the challenges involved remains to be seen. To conclude, it is the need of the hour to switch to cleaner sources of energy and save the planet, and green hydrogen is an excellent substitute for conventional sources of energy. 

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