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Hydrogen – Making India self-reliant: Alok Sharma, Director (R&D), IndianOil
India’s journey towards energy self-reliance is being significantly bolstered by the potential of hydrogen as a sustainable energy source. The hydrogen market outlook is promising, with key insights from industry experts and strategic national missions setting the stage for a transformative energy landscape.
Hydrogen Market Outlook
The global hydrogen market is experiencing a dynamic shift, primarily driven by advancements in green hydrogen technology and supportive policy frameworks. According to BloombergNEF, the levelized cost of hydrogen (LCOH2) has seen a slight increase due to inflation and higher financing costs. However, green hydrogen is expected to become competitive with grey hydrogen (produced from natural gas) in several key markets by 2030. This competitiveness is attributed to technological advancements and economies of scale, which are projected to reduce the cost of green hydrogen production significantly.
Green hydrogen, produced through the electrolysis of water using renewable energy, is set to undercut grey hydrogen as early as the end of this decade in major economies such as Brazil, China, India, Spain, and Sweden. This shift is crucial for decarbonizing industries and achieving net-zero targets, especially for a country like India, which has a large industrial base dependent on fossil fuels.
National Green Hydrogen Mission
India’s National Green Hydrogen Mission is a strategic initiative aimed at positioning the country as a global hub for green hydrogen production and export. Launched by the Indian government, this mission underscores the country’s commitment to reducing its carbon footprint and achieving energy independence. The mission includes various policy measures and financial incentives to promote the adoption of green hydrogen across different sectors, including transportation, industry, and energy storage. Key components of the mission involve the establishment of green hydrogen production facilities, the development of a robust hydrogen infrastructure, and fostering research and development in hydrogen technologies. The government has outlined specific targets to produce and utilize green hydrogen, which will play a crucial role in reducing greenhouse gas emissions and enhancing energy security.
The initial outlay for the Mission will be INR 197.44 billion, including an outlay of INR 174.90 billion for the SIGHT programme, INR 14.66 billion for pilot projects, INR 4 billion for R&D, and INR 3.88 billion towards other Mission components.
Green Hydrogen Targets
India has set ambitious targets for green hydrogen production to meet its energy and climate goals. The government aims to produce 5 million metric tonnes of green hydrogen annually by 2030. This target is supported by the development of renewable energy capacity, with a focus on solar and wind power, which are critical for producing green hydrogen.
To achieve these targets, India is investing in large-scale green hydrogen projects and forming strategic partnerships with global leaders in hydrogen technology. Additionally, the government is providing financial incentives such as subsidies, tax breaks, and grants to encourage private sector investment in green hydrogen infrastructure. These measures are expected to drive down the cost of green hydrogen production and make it more competitive with traditional fossil fuel
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