In Pursuit of Decarbonisation: Embracing Green Hydrogen to Power India's Future

[Our on-ground climate journalism needs your insights, ideas, and financial support - as we cover the biggest crisis of our times. Become a member so we can bring more such stories to light.]Green hydrogen has emerged as a focal point in the global pursuit of decarbonisation. The past year has witnessed a surge in political and commercial interest, evidenced by the proliferation of policies and projects worldwide. As nations integrate hydrogen into their decarbonisation strategies, the challenge of producing green hydrogen at scale and cost-competitively with traditional fuels persists. India is at the forefront of this green hydrogen revolution. The country's National Green Hydrogen Mission, launched in January 2023 with a substantial Rs 19,744 crore investment, underscores its ambitious goal of achieving a 5 million tonnes green hydrogen production capacity by 2030.The Ministry of New And Renewable Energy has awarded tenders for 412,000 tonnes of green hydrogen production and 1,500 MW of electrolyser manufacturing capacity to date. At COP26, India has led an ambitious Five-part "Panchamrit" Pledge. It Includes achieving 500 GW of non-fossil electricity capacity and reducing emissions by one billion tonnes by 2030. Kerala’s Climate Crisis: A Dire Need for Climate-Literate and Committed LeadersGreen hydrogen is a clean energy haulier produced from renewable energy sources such as power from PV cells or naturally from wind energy. Usually, conventional hydrogen production is dependent upon fossil fuels. However, green hydrogen is generated through a process called electrolysis. In this method, electricity from renewable sources (wind OR hydro) splits water into hydrogen and oxygen, resulting in zero carbon emissions. Green hydrogen has a wide range of implementations.It can be used for transportation fuel in hydrogen fuel cell vehicles, offering a clean alternative to traditional petroleum products such as diesel. Moreover, green hydrogen can also serve as a means of energy storage, resulting in helping balance supply and demand in renewable energy systems. It is also quite beneficial in various industrial processes, including steel manufacturing and chemical production. This helps reduce dependency on fossil fuels, which is important for having low carbon footprints. Green hydrogen plays a significant role in achieving India's sustainable development aims. Producing and using it will result in zero carbon emissions, contributing to a cleaner and more sustainable energy view. Its adoption can significantly enhance air quality by reducing hazardous pollutants associated with conventional fossil fuels. This upgrade in air quality will promote healthier living conditions, majorly in cities that are hunted by smog and air pollution. India has a target to become a net Zero Country by 2070. Green Hydrogen will play a significant role in achieving this target and embracing living in a cleaner and greener environment. Budget 2024 Has a Green Blueprint for Flood Resilience and Climate ActionThe potential of green hydrogen to reshape the world's energy and utility industry is huge, as indications show that its only market may be valued at $11 trillion by 2050. Global trends are progressing towards less expensive production technologies, and the general acceptance of this transition. Europe is leading this change. In line with its European Green Deal, the EU plans to generate 10 M tons of hydrogen per annum by 2030 to reduce greenhouse gas emissions by 55 percent below their 1990 level year over year. On the other hand, Japan plans to have approximately 10 M vehicles that use hydrogen on its roads. In contrast, South Korea will aim to produce 6.2 M cars running on hydrogen and build a hundred hydrogen fueling stations by 2040.Green hydrogen transforms transportation, providing fuel cells for buses, trucks and cars. By 2050, CO2 emissions could be cut by a third (34 percent) from current levels, whilst hydrogen might meet a quarter (24 percent) of global energy needs under some predictions. Industries such as steel and cement that face challenges in decarbonisation can also see benefits from hydrogen adoption as it helps slash their carbon footprint. Despite challenges like production costs and storage constraints, ongoing research and innovation are anticipated to overcome these hurdles. The International Renewable Energy Agency (IRENA) predicts that production costs for hydrogen could plummet by as much as 85 percent by 2050. According to current technologies and research results, hydrogen fuel emits no emissions, but the cost per km is almost equal to that of petrol vehicles (see figure below). With the progress of technology and the increasing backing of policies, green hydrogen is poised to impact the shift towards sustainable energy. It goes beyond cutting emissions; it's about creating a robust future for all. 'Matter of Necessity': Why Climate Change is Top Issue for Delhi's Gen Z VotersThough Green Hydrogen is needed for a better future, one of the primary challenges is the considerable upfront investment required to establish a robust hydrogen infrastructure. This financial burden can surely hinder the rapid scaling of the hydrogen economy. Moreover, the high production costs of green hydrogen, primarily due to the energy-intensive electrolysis process, make it less economically competitive than traditional fuels. Public awareness of green hydrogen's benefits, usage and safety is a crucial step for the successful adoption of green hydrogen. This group conducted an informal survey (n=99) covering different age groups across male and female respondents, showcasing that 94 percent of the public is interested in Fuel Cell Electric Vehicles (FCEVs). They highlighted the environmental benefits and said fast refuelling will majorly impact adoption.However, few respondents called out key challenges like lack of public awareness (34 percent), high production cost (24 percent), and infrastructure & technological advancement (21 percent). 80 percent of the public is optimistic about government support to boost adoption. In another survey with industry experts (n=12), there were almost similar responses, with 90 percent being confident about the future of green hydrogen. Key benefits chosen were Zero tailpipe emissions (33 percent), reduced dependency on fossil fuel (33 percent), and more and more use of renewable sources (25 percent). On the other hand, challenges include high production costs (50 percent), infrastructure unavailability (25 percent), and safety concerns (17 percent). Experts also believe government incentives and support for better consumer awareness will play a vital role. A focused approach, constituting a dedicated team of specialised members, formulating much-needed supportive policies, and initiating public campaigns involving famous screen personalities will help gain momentum in FCEV adoption. 'Health Goes for a Toss': How Extreme Heat Wreaks Havoc on Daily Life For WomenIndia has ambitious energy independence and net-zero goals for 2047 and 2070, respectively. The National Green Hydrogen Mission was announced in 2023 to act on these goals. This mission aims to establish a robust green hydrogen ecosystem, targeting the production of 5 MMTPA of green hydrogen by 2030.India seeks to position itself as a global leader in green hydrogen by developing indigenous technologies and localising electrolyser production. This is supported by a 125 GW renewable energy target for green hydrogen.The mission is backed by a comprehensive incentive framework, including financial incentives and policy support such as purchase obligations, infrastructure development, and R&D. The government fosters market creation through joint ventures, public procurement, and international collaborations. An outlay of Rs 17,490 crore is proposed for electrolyser manufacturing incentives, with an additional Rs 1066 crore for pilot projects and Rs 400 crore for green hydrogen hub projects. To achieve 50 MMT of carbon reduction (which requires 8.3 billion Trees) cumulatively, the mission aims to create 600,000 new green jobs while addressing India's over 40 percent reliance on imported energy. Green hydrogen is poised to replace fossil fuels, making India self-reliant and resilient in international energy market crises. What Pune Floods Are Teaching Us About Building Climate-Resilient CitiesGreen hydrogen has many applications, extending beyond the transport sector to various industries. Numerous initiatives are underway to introduce green hydrogen-powered vehicles and establish refuelling infrastructure, promoting sustainable transportation solutions. These vehicles emit only water vapour, making them environmentally friendly alternatives to traditional cars. However, widespread adoption requires a robust refuelling station network for user convenience and accessibility. As a potential fuel for power generation, green hydrogen offers a clean and reliable energy source. It can be used in fuel cells to generate electricity without harmful emissions, providing a sustainable alternative to fossil fuels. Industries, such as steel and chemicals, can integrate green hydrogen into their processes to reduce carbon emissions and decrease their overall carbon footprint.Though green hydrogen has a wide range of uses, we must focus on scaling the production and infrastructure to cope with the requirements. Enhancing the efficiency and cost-effectiveness of production methods ensures a steady supply. India has started increasing the scaling production and infrastructure expansion to meet the growing demand from various sectors, including transportation and industry. Building a comprehensive network of refuelling stations and distribution centres is vital for adopting hydrogen technology. Strategic planning and investment are essential to manage the supply chain effectively. The green hydrogen industry can create many manufacturing, engineering, and construction jobs. New hydrogen technology encourages innovation, helping countries like India lead the global shift to sustainable energy. This boosts economic growth, creates a skilled workforce, and advances technology. India can also lead to an export market with a potential of 300 billion dollars annually.Green hydrogen provides a pathway for decarbonising sectors dependent on fossil fuels like steel, fertilisers, maritime shipping, and long-haul road transportation. With the large availability of various renewable energy sources in India, Green Hydrogen is strategically important for reducing dependence on fossil fuels and corresponding fuel imports. While it states many benefits, it outlays a few challenges, like high production costs and infrastructure limitations. Countries like India lead the charge with ambitious targets and policies to promote green hydrogen. Green hydrogen can become a cornerstone of a sustainable future by addressing challenges and fostering collaboration. Acknowledgement This write-up is part of the Emerging Leaders Programme (ELP) at the Indian School of Business (ISB). The program is designed to cultivate future-ready leaders with the technological acumen and interpersonal skills to navigate complex business landscapes. [Anjal Prakash is a Clinical Associate Professor (Research) at Bharti Institute of Public Policy, Indian School of Business (ISB). He teaches sustainability at ISB and contributes to IPCC reports. Anil Kumar Golla is a Leadership Student at ISB and a technocrat working as a Software Engineering Leader managing Global DevOps portfolios at AstraZeneca India Pvt Ltd. Kavitha Doddapaneni is a Leadership Student at ISB and is currently working as a Senior Engineering Management Specialist at Hashedin by Deloitte, with nine years of industry experience. Mohd Owaish is an assistant manager in Cognitio Analytics with years of industry experience in delivering predictive analytics solutions. Priyam Dutta is a seasoned Engineering Manager working at Apple with 17+ years of industry experience, currently managing the APAC data analytics portfolio from India. Rajashri Kolli has 13+ years of experience in engineering design and industrial operations management from Machine tools, Oil & Gas, Printing, & Packaging industries. Swapnil Hire is a leadership student at ISB and Commercial Director at Alumil India. He has 14+ years of experience in Sales and Operations in Facade and Fenestration. Vaibhav Mittal is a Test Engineering Manager at Broadcom with 20+ years of experience managing Enterprise Products's QA and Release portfolio. He is currently an ELP student at ISB.] Explained: Is Climate Change Fueling More Turbulence in the Skies?

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In Pursuit of Decarbonisation: Embracing Green Hydrogen to Power India's Future

The potential of green hydrogen to reshape the world's energy and utility industry is huge.

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Topics: Climate Change