How is green hydrogen contributing to India's sustainable energy transition as outlined in recent policy initiatives? | Q & A

Green hydrogen is playing a pivotal role in India's sustainable energy transition, as outlined in recent policy initiatives and government strategies. The Indian government has positioned green hydrogen as a cornerstone of its net-zero emissions goals and energy independence by 2070. Here’s a detailed breakdown of how green hydrogen is contributing to India’s sustainable energy landscape, based on recent policy developments:

Launched in 2023 by the Ministry of New and Renewable Energy (MNRE), the National Green Hydrogen Mission is a flagship initiative aimed at accelerating the production, use, and export of green hydrogen in India. The mission has a total outlay of ₹19,744 crore (approximately USD 2.4 billion) and is structured around the following key objectives:

• Goal: Achieve 5 million metric tonnes (MMT) of annual green hydrogen production capacity by 2030.
• Impact: This will reduce 50 MMT of CO2 emissions annually and position India as a major global exporter of green hydrogen and its derivatives.

• Strategic Interventions for Green Hydrogen Transition (SIGHT): A financial incentive program worth ₹17,490 crore supports:
  • Electrolyser manufacturing: Incentives for setting up electrolyser manufacturing units to reduce dependency on imports.
  • Green hydrogen production: Direct production incentives for companies to produce green hydrogen at competitive prices.
• Pilot Projects: The mission includes ₹455 crore for low-carbon steel projects, ₹496 crore for mobility pilot projects, and ₹115 crore for shipping pilot projects.

• The mission aims to identify and develop at least two Green Hydrogen Hubs in the initial phase to support large-scale production and utilization of hydrogen.
• Outlay: ₹400 crore for hub development and related infrastructure.

India's abundant renewable energy resources—solar and wind—are critical to the success of green hydrogen production. The country has already installed 223 GW of renewable energy capacity, including 108 GW from solar and 51 GW from wind [4]. This renewable base provides the clean electricity needed for electrolysis, the process that splits water into hydrogen and oxygen.

• Target: Reach 500 GW of renewable energy capacity by 2030 to support green hydrogen production at scale.
• Impact: This will enable India to produce green hydrogen at low costs, making it competitive globally.

Green hydrogen is a key enabler for decarbonizing hard-to-abate sectors such as steel, cement, ammonia, and long-haul transport, where direct electrification is not feasible.

• Steel and Cement: Green hydrogen can replace coal and natural gas in steelmaking and cement production, significantly reducing carbon emissions.
• Ammonia Production: Green ammonia, produced from green hydrogen, is a zero-emission alternative to grey ammonia, used in fertilizers and energy storage.

India aims to become a major global exporter of green hydrogen and its derivatives by 2030. The government is actively pursuing international partnerships to expand its export capabilities.

• Ports as Green Hydrogen Hubs: Kandla, Paradip, and Tuticorin ports have been identified for development as green hydrogen export hubs, equipped with storage and transportation infrastructure.
• International Collaboration: India is collaborating with the European Union and other countries to enhance green hydrogen cooperation, including technology transfer, infrastructure development, and regulatory alignment.

The government is taking steps to create domestic demand for green hydrogen to ensure a stable market for producers.

• Mandatory Consumption: The government will specify a minimum share of green hydrogen consumption by designated industries, such as steel and transportation.
• Green Hydrogen Certification Scheme: A certification framework has been launched to ensure the quality and sustainability of green hydrogen and its derivatives.

The adoption of green hydrogen is expected to yield significant environmental and economic benefits for India.

• CO2 Emission Reduction: The mission aims to reduce 50 MMT of CO2 emissions annually by 2030.
• Job Creation: The mission is projected to generate over 600,000 jobs in manufacturing, production, and infrastructure development.
• Investment Inflows: The mission is expected to attract USD 100 billion in investments by 2030, boosting India's green economy.

Despite its potential, green hydrogen faces several challenges in India, including high production costs, lack of standardized frameworks, and infrastructure limitations. The government is addressing these through:

• Subsidies and Incentives: Financial support for electrolyser manufacturing and green hydrogen production to reduce costs.
• Policy Framework: Streamlining regulations and providing exemptions for green hydrogen and green ammonia plants from environmental clearance.
• Research and Development (R&D): The Strategic Hydrogen Innovation Partnership (SHIP) will facilitate public-private R&D collaborations to drive technological advancements.

• Tender Awards: The government has awarded 862,000 tonnes per annum (TPA) of green hydrogen production capacity to 19 companies and 3,000 MW of electrolyser manufacturing capacity to 15 firms.
• Pilot Projects: Green hydrogen pilot projects are underway in steel, mobility, and shipping sectors to test and scale up applications.
• State-Level Policies: 15 states have announced policies to support green hydrogen development, creating a favorable regulatory environment.

Green hydrogen is a strategic pillar of India's sustainable energy transition, aligning with the country's net-zero goals and energy independence ambitions. Through the National Green Hydrogen Mission, India is positioning itself as a global leader in green hydrogen production and export, leveraging its renewable energy potential, industrial demand, and international partnerships. The government's proactive policies, financial incentives, and infrastructure development efforts are laying the foundation for a thriving green hydrogen economy in India.