Green Hydrogen Is Critical to India’s Economic Development:NITI Aayog

In News 

Recently ,NITI Aayog released a report titled  Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India .

  • The report, co-authored by NITI Aayog and RMI.

RMI

  • RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5° C future and secure a clean, prosperous, zero carbon future for all.

Major Highlights 

  • It provides a pathway to accelerate the emergence of a green hydrogen economy, which is critical for India to achieve its net-zero ambitions by 2070.
  • It highlights that green hydrogen can substantially spur industrial decarbonisation and economic growth for India in the coming decades.
    • It can potentially provide a replacement of fossil fuels in industrial processes.
  • Its underscores that green hydrogen  will be crucial for achieving decarbonisation of harder-to-abate sectors such as fertilisers, refining, methanol, maritime shipping, iron & steel and transport. 
  • The report concludes that hydrogen demand in India could grow more than fourfold by 2050, representing almost 10% of global demand
    • Given that the majority of this demand could be met with green hydrogen in the long term, the cumulative value of the green hydrogen market in India could reach US $8 billion by 2030.

Suggestions /Pathways

  • The report describes pathways that can capture the benefits of green hydrogen
    • Near-term policy measures can bring down the current costs of green hydrogen to make it competitive with the existing grey hydrogen (hydrogen produced by natural gas) prices.
    •  Medium-term price targets should be set to guide the industry towards making green hydrogen the most competitive form of hydrogen.
    • Governments can encourage near term market development by identifying industrial clusters and enacting associated viability gap funding, mandates and targets.
    • Opportunities around research and development and manufacturing of components like electrolysers need to be identified and appropriately encouraged with adequate financial mechanisms such as production-linked incentive (PLI) schemes to enable 25 GW of manufacturing capacity of electrolysers by 2028.
    • A globally competitive green hydrogen industry can lead to exports in green hydrogen and hydrogen-embedded low-carbon products like green ammonia and green steel that can unlock 95 GW of electrolysis capacity in the nation by 2030.

Green Hydrogen

  • It is produced through electrolysis using renewable sources of energy such as solar, wind or hydel power.
  • Green hydrogen gas is produced by splitting water into hydrogen and oxygen using an electrolyzer that may be powered by electricity generated from renewable energy sources.
  • The rapidly declining cost of renewable energy is one reason for the growing interest in green hydrogen.
  • Green Hydrogen is one of the most popular and demanding fields in the current times and considered to be the next carrier of energy.
  • India’s Green Hydrogen production  :India has just begun to generate green hydrogen with the objective of raising non-fossil energy capacity to 500 gigawatts by 2030. On April 20, India’s first 99.99% pure green hydrogen pilot plant was set up in eastern Assam’s Duliajan.

Why is India pursuing green hydrogen?

  • Under the Paris Agreement of 2015, India is committed to reducing its greenhouse gas emissions by 33-35% from the 2005 levels.
    • It is a legally binding international treaty on climate change with the goal of limiting global warming to below 2°C compared to pre-industrial levels. 
  • At the 2021 Conference of Parties in Glasgow, India reiterated its commitment to move from a fossil and import-dependent economy to a net-zero economy by 2070
  • India’s average annual energy import bill is more than $100 billion.
  • The increased consumption of fossil fuel has made the country a high carbon dioxide (CO2) emitter, accounting for nearly 7% of the global CO2 burden. 
  • In order to become energy independent by 2047, the government stressed the need to introduce green hydrogen as an alternative fuel that can make India the global hub and a major exporter of hydrogen.
  • It will benefit India’s transportation sector (which contributes 1/3 of India’s greenhouse-gas emissions), iron and steel and chemical sectors.
  • Hydrogen energy can provide impetus to India’s aim to decarbonise by 2050 and attain 175 GW of renewable energy capacity by 2022.
  • The energy in 2.2 pounds (1 kilogram) of hydrogen gas contains about the same as the energy in 1 gallon (6.2 pounds, 2.8 kilograms) of gasoline.

Other types of Hydrogen: 

Image Courtesy: WEF 

Source:PIB

 
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