India’s Green Hydrogen Revolution
Target: 10% global market share & 10 MTPA exports by 2030
New Report Highlights: India can emerge as a global leader in the green hydrogen economy — with the potential to capture 10% of the global market and export nearly 10 million tons (MTPA) annually by 2030.
What is Green Hydrogen (GH2)?
Introduction: Green hydrogen is hydrogen produced through electrolysis, where renewable energy sources like solar, wind, or hydropower split water (H2O) into hydrogen (H2) and oxygen (O2). Additionally, biomass gasification can also generate hydrogen-rich gas, yielding GH2.
Key Applications
- Transport: Fuel cell electric vehicles (FCEV), aviation, shipping, and railways
- Industries: Fertilizers, refineries, steel, and other hard-to-abate sectors
- Energy: Long-term energy storage and power generation support
India’s GH2 Ambitions — MAPE
- M – Market Leadership: Capture ~10% of the global GH2 market (100+ MMT projected) by 2030.
- A – Abatement of Emissions: Cut ~50 MMT CO2 annually, aligned with India’s NDC and net-zero goals.
- P – Powering Production: Develop 5 MMT/year domestic GH2 production capacity by 2030.
- E – Employment Creation: Create 600,000+ green jobs in R&D, manufacturing, storage, logistics, and exports.
Key initiatives like the National Green Hydrogen Mission, GH₂ Certification Scheme, and development of GH₂ hubs at Kandla, Paradip, and Tuticorin are shaping this vision.
Other Types of Hydrogen (Overview)
- Grey Hydrogen: From natural gas/coal — high CO2 emissions.
- Blue Hydrogen: Grey + carbon capture & storage (CCS).
- Pink/Purple: From nuclear-powered electrolysis.
- Turquoise: Methane pyrolysis with solid carbon byproduct.
Challenges in India’s GH2 Ecosystem — CAGE
- C – Cost Barrier: Current cost ~US$ 4–4.5/kg, much higher than grey hydrogen.
- A – Access to Capital: Large upfront investments needed for electrolyzers & renewables.
- G – Gaps in Infrastructure: Lack of pipelines, storage, and refueling networks.
- E – Economic Viability: Delays in carbon pricing keep fossil-based hydrogen artificially cheaper.
The Way Forward — POWER Strategy
- P – Pricing Carbon: Implement carbon tax/market mechanisms to ensure a level playing field.
- O – Obligation Mandates: Introduce Green Hydrogen Purchase Obligations (GHRO) in steel, fertilizer, and refining sectors.
- W – Widen Infrastructure Base: Develop electrolyzer manufacturing, storage, pipelines, and export corridors with partners like the EU, Japan, and South Korea.
- E – Economic Reallocation: Redirect fossil subsidies towards GH2, with tax incentives & Viability Gap Funding.
- R – Risk Pooling via Demand Aggregation: Create joint procurement platforms and payment security frameworks for reliable contracts & competitive pricing.
Conclusion
- With clear policy signals, competitive costs, and robust infrastructure, India can lead globally in GH2.
- Overcoming CAGE barriers with the POWER roadmap is the key to success.
- Jobs, exports, and emission reductions — GH2 can be a game-changer for India.
India as a Global Green Hydrogen Leader
A new report has positioned India as a potential global leader in the green hydrogen economy, with the capacity to capture 10% of the global market by 2030 and export 10 million tons annually.
What is Green Hydrogen (GH₂)?
Green hydrogen is hydrogen produced via electrolysis, where renewable energy sources such as solar, wind, or hydro power are used to split water molecules (H₂O) into hydrogen (H₂) and oxygen (O₂).
It can also be produced through biomass gasification, converting biomass into hydrogen-rich gas.
Applications
- Fuel cell electric vehicles (FCEVs)
- Aviation & shipping transport
- Industries: fertilizers, refineries, steel
- Potential in road & rail transport, shipping, and power generation
India’s Green Hydrogen Ambitions (MAPE)
- M – Market Leadership: Capture 10% of global GH₂ market (~100 MMT) by 2030.
- A – Abatement of Emissions: Reduce ~50 MMT CO₂ annually, aligned with India’s NDC and net-zero goals.
- P – Powering Production: Develop 5 MMT/year GH₂ production capacity by 2030.
- E – Employment Creation: Create 600,000+ green jobs across the GH₂ value chain.
Challenges: The CAGE Factors
- C – Cost Barrier: Current cost is ~US$ 4–4.5/kg, higher than grey hydrogen.
- A – Access to Capital: Heavy upfront investment required for electrolyzers & renewables.
- G – Gaps in Infrastructure: Lack of pipelines, storage, refueling networks.
- E – Economic Viability Issues: Delay in carbon pricing keeps fossil-based hydrogen cheaper.
Solutions: The POWER Strategy
- P – Pricing Carbon: Introduce carbon tax/market for fair competition.
- O – Obligation Mandates: Mandate GH₂ purchase in hard-to-abate sectors (steel, fertilizer, refining).
- W – Widen Infrastructure Base: Build electrolyzer capacity, pipelines, storage, export corridors with global partners.
- E – Economic Reallocation: Shift subsidies from fossil fuels to GH₂, provide tax incentives & VGF.
- R – Risk Pooling via Demand Aggregation: Create joint procurement platforms with payment security.