India’s push for green energy has received a fresh boost this week with the Union cabinet approving its outlay 19,744 crore for National Green Hydrogen Mission. A major portion of this will go into strategic interventions for the Green Hydrogen Transition Initiative for production of green hydrogen and manufacturing of electrolyzers (required for this), while some money will be earmarked for pilot projects as well as research and development (R&D). has gone. , The mission aims to take our annual green hydrogen production to 5 million tonnes by 2030, attracting investment. 8 trillion and creating 600,000 jobs along the way. These are goals worth chasing. With decarbonization being a major policy focus across the world, India should also move swiftly in that direction. Green hydrogen stands out because it holds the promise of global leadership. As the industry is still nascent worldwide, the race has only just begun. While the EU, the US and others have allocated huge budgets for cleanly produced hydrogen that could fuel vehicles, furnaces and other fuel-guzzlers, we have mega projects announced by India Inc that reveal dramatic ambitions. Huh. This is a busy area for good reason.
The science of making green hydrogen is simple. The oxygen and hydrogen of water can be split with electricity through a process called electrolysis. If done with electricity generated without emissions, it qualifies as ‘green’. And if the hydrogen thus produced is captured for use, it can be oxidized or ‘burned’ in a chamber to power the engine without any exhaust carbon. What sounds like an ideal way to decarbonize other sectors such as transport and steel, however, is also prohibitively expensive right now. The global race is dependent on innovation to bring down its costs to viability levels in many use cases. Not only have affluent investors like Reliance and Adani (along with France’s Total) entered the sector with big investment plans, other private players like JSW Energy, Larsen & Toubro and Renew Power have also been active. State-run power companies Indian Oil and NTPC also have plans. Can all this money and rivalry make the most of Indian R&D talent to usher in another kind of green revolution?
right now, it takes us an approximate 300-400 to produce one kilogram of green hydrogen. it should be brought down 100 for Indian production to be globally competitive. Reliance set $1 per kilo within a decade as its target. For a chance to take world leadership, India will need to climb the innovation curve faster than other energy players. Since cost is key, it will take high efficiency across the entire ecosystem – every link in the supply chain to be protected – including cheaply made but reliable electrolyzers. As there is a need to promote their local manufacturing, it is logical for the Center to give production linked incentives to the sector even as it promotes adoption of this fuel to create demand. If it goes beyond reducing the carbon intensity of our economy to offsetting our dependence on fossil-fuel imports, this emphasis could pay the country back in a significant way in the coming decades. For decades, the lack of domestic energy has been a hindrance to India’s rise. Should technology widen a country’s fuel choice set, we would also have more room to manage our external trade balance, which in turn would give us policy flexibility as we globalize. Right now, we have a large and volatile oil bill to worry about. Cutting-edge R&D that provides low-cost green hydrogen could change that.
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