According to Reuters, India is in negotiations with other countries governments about exporting green hydrogen produced in the South Asian country. “We are in a position to make green hydrogen our primary source of energy in the future,” Prabhat Kumar, an additional secretary in the External Affairs Ministry, said at an industry event.
Green hydrogen is created by breaking down water with renewable electricity, which is critical for decarbonizing difficult-to-abate heavy industries. The Indian government is planning a significant increase in green hydrogen generation to reduce its reliance on energy imports and wean the economy off fossil fuels in order to meet climate commitments.
New Delhi wants 25 million tons each year by 2047, according to sources familiar with the plans. However, the figure could alter in the future, depending on technology and the country’s demand projections, they noted. India’s present output of fuel is quite limited and comes from a few test projects.
Green hydrogen may be a solution to pollutants, but scaling up and making it cost-effective are still challenges. It is not assured that demand will increase, and fuel may not become the preferred choice in transportation and industry.
Zero emissions target
The potential for low-cost renewable energy generation in India, the world’s third-largest producer of greenhouse gases, has been a driving force behind the government’s carbon-free hydrogen goals. India’s objective of reaching net zero emissions by 2070 has received backing from business tycoons such as Gautam Adani and Mukesh Ambani, as well as state-run energy heavyweights such as NTPC Ltd. and Indian Oil Corp.
Adani has vowed to invest $70 billion in clean energy assets, including green hydrogen, while Ambani’s Reliance Industries Ltd., one of India’s most valued firms, wants to expand the production of solar panels, clean hydrogen electrolyzers, and rechargeable batteries. TotalEnergies SE, a subsidiary of Total SA, has committed to collaborate with Adani on hydrogen projects in India.
The government is contemplating further ways to boost the sector, such as granting production-linked incentives to manufacturers of electrolyzers.
Green hydrogen is created by splitting hydrogen and oxygen in water using electrolyzers fueled by renewable electricity. In refineries and fertilizer factories, the product can replace hydrogen obtained from some fossil fuels. It has the potential to replace coal in steel mills and oil products in long-haul transportation.
The green hydrogen ambitions are part of a bigger strategy for 2047, India’s centennial year of independence. The plan also aims to boost energy efficiency, power markets, and renewable energy equipment production, according to the persons.
Conglomerates headed by India’s two richest men, Gautam Adani and Mukesh Ambani, as well as state energy heavyweights, have committed major investments in the green hydrogen value chain. This is in response to Prime Minister Narendra Modi’s aim to make the country a global powerhouse in this sector.
What is GH2?
Green hydrogen (GH2 or GH2) is hydrogen produced using renewable energy or low-carbon power. It produces less carbon dioxide than grey hydrogen, which is produced by steam-reforming natural gas and dominates the hydrogen market.
Green hydrogen produced by water electrolysis accounts for less than 0.1% of overall hydrogen generation. It could reduce climate change by decarbonizing steel and cement production, which are hard to electrify.
The high cost of production is the primary reason for the poor utilization of green hydrogen. Nonetheless, the hydrogen market is predicted to expand, with some projections predicting that the cost of hydrogen production will reduce from $6/kg in 2015 to roughly $2/kg by 2025. Major European corporations declared plans to convert their truck fleets to hydrogen power by 2020.
Green hydrogen can be combined into natural gas pipes to generate green ammonia, a major fertilizer ingredient. Green ammonia is expected to be cost-competitive with conventionally generated ammonia (gray ammonia) by 2030, according to hydrogen industry organizations.
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