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Europe Sees Huge Hydrogen Opportunity In Asia
Hot on the tail of Europe, which has expanded its green hydrogen production over the last year, Asia is developing its hydrogen industry to become a major producer over the next decade. As several countries announce renewable energy strategies, green hydrogen, as well as hydrogen produced using carbon capture technologies, will play a major role.
Green hydrogen demand is expected to increase dramatically as the world transitions away from fossil fuels to renewable alternatives. Hydrogen demand could reach anywhere between 150 to 500 million metric tonnes per year by 2050, depending on global climate ambitions, according to a PWC report. While green hydrogen is much more expensive to produce than grey hydrogen – derived from natural gas production – the push by governments around the world to curb carbon emissions by the end of the decade is already driving up demand for the green alternative. Companies are now racing to produce low-cost green hydrogen, using new technologies and techniques, in the hope that they can become more competitive.
Last year, India announced a new green hydrogen strategy, although its technology for the production of green hydrogen is still in its infancy. Despite skepticism around the anticipated rapid growth of India’s green hydrogen industry, it has already developed its solar energy sector substantially over the last decade, showing what can be done with enough political will. India now has 50 GW installed solar capacity, adding a record 10 GW in 2021 alone.
India expects to produce 5 million tonnes of the fuel by 2030, promoting the country as a green hydrogen hub. Several initiatives have been seen in recent months supporting this production goal, including an investment of $75 billion by India’s Reliance Industries in the green energy market, including green hydrogen. In addition, in April Greenko group and Belgium-based John Cockerill committed to the construction of a 2GW hydrogen electrolyzer gigafactory in India. This would be the biggest in the world outside of China. The Indian Oil Corporation also announced a partnership with two private firms for green hydrogen production.
Now, European governments are eyeing Asia’s green hydrogen potential, as Germany announces an agreement for German-Indian hydrogen cooperation. This comes as part of the country’s plan for “hydrogen diplomacy” as it seeks to develop more friendly energy allies in the wake of Russian energy provision. Germany’s Minister of Economic and Climate Affairs Robert Habeck stated “As part of our energy partnership with India, we have agreed to work together in more depth on developing innovative solutions for sustainable green hydrogen production. An important milestone in reducing our dependence on fossil fuels.”
With 7,500 kilometers of coastline and an abundance of sun, India is well-located to produce the renewable energy required to support green hydrogen production. Germany and India are now expected to create a task force, which will develop a road map for the development of the green hydrogen industry and how that will look for the two countries.
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