Green Hydrogen Policy
With an annual output target of 5 MMT by 2030, the National Green Hydrogen Mission (2022) sees India as a global centre for the production and export of green hydrogen. This mission marks a major shift in India’s energy security and climate policy, and it is consistent with the country’s goal of reaching net zero by 2070.
Opportunities in India’s Energy Transition
Green hydrogen offers a solution to decarbonise industry, particularly in industries where renewable electricity is insufficient, such as steel, fertiliser, and refineries. By lowering reliance on petrol and oil imports, it increases strategic autonomy and protects India from geopolitical shocks. Additionally, it makes India more competitive in international trade, especially in light of the EU’s carbon border tax system. Additionally, it has the ability to innovate and create jobs; according to NITI Aayog, over six lakh new jobs might be created. Additionally, the policy positions India as a leader in the global energy transformation.
Challenges in Implementation
The mission has a lot of obstacles in spite of its promise. The present production cost ($4–5/kg) is significantly greater than the $1–2/kg worldwide competitiveness target. India still depends on imports for technology and has infrastructure deficiencies in the areas of storage, transportation, and electrolyser production. With over 9 litres needed for every kilogramme of hydrogen, the process is also water-intensive, which puts areas that are already water-stressed at risk. Scalability is also hampered by the lack of explicit safety laws and carbon pricing schemes.
Contemporary Developments
Strong private sector involvement has been observed in India, as evidenced by the significant investments announced by Reliance, Adani, NTPC, and Indian Oil. India has international green hydrogen trade agreements with the UAE, Japan, and the EU. The initial phases of practical acceptance are seen in pilot projects, such as hydrogen-powered buses in Gujarat and Kerala.
Critical Analysis
Although ambitious, India’s green hydrogen strategy runs the risk of becoming subsidised rather than self-sustaining if costs are not reduced. To guarantee ecological sustainability, the objective also needs to be integrated with storage capacity, water management regulations, and the growth of renewable energy. Critics contend that rather from becoming a hub, India would become reliant on imports if it does not have strong R&D leadership and domestic manufacturing.
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About the Author: Jyoti Verma
