Why is it in the news?
- The World Economic Forum (WEF) has issued a comprehensive report titled ‘Green Hydrogen: Enabling Measures Roadmap for Adoption in India.’
|About Green Hydrogen
· Green Hydrogen is hydrogen produced using renewable energy sources such as electrolysis or the conversion of biomasses.
· India’s current hydrogen production stands at 6.5 million metric tonnes per annum (MMTPA). This hydrogen is primarily utilized in crude-oil refineries and fertilizer production.
Need for Adoption of Green Hydrogen:
· The adoption of Green Hydrogen is imperative to decarbonize critical sectors like transportation, shipping, and steel, aiming to achieve net-zero emissions by 2070.
· Additionally, with an estimated 35% growth in energy demand by 2030, there is a pressing need for sustainable energy solutions.
Concerns with Green Hydrogen:
· The cost of producing green hydrogen is currently around $4-5 per kilogram, posing economic challenges.
· Irregular availability of renewable energy and a lack of economical battery storage infrastructure create obstacles.
· Trade barriers with countries like Europe, Korea, and Japan, which are expected to emerge as crucial markets for green hydrogen, present additional challenges.
Key Goals to Accelerate Green Hydrogen Ecosystem in India
On the Supply Side:
- Reduce the cost of producing green hydrogen to less than $2 per kilogram.
- Eliminate costs associated with green hydrogen conversion, storage, and transportation.
On the Demand Side:
- Capitalize on India’s export potential for green hydrogen derivatives by developing conversion and storage facilities at ports.
- Introduce penalties on the use of carbon-intensive alternatives such as natural gas to incentivize the adoption of green hydrogen.
|National Green Hydrogen Mission
· The National Green Hydrogen Mission is designed to position India as a Global Hub for producing, utilizing, and exporting Green Hydrogen.
· It comprises two sub-missions:
1) Strategic Interventions for Green Hydrogen Transition (SIGHT): Focused on strategic measures to facilitate the transition to green hydrogen.
2) Strategic Hydrogen Innovation Partnership (SHIP): Aimed at fostering innovation in the hydrogen sector through strategic partnerships.