Strategic Intervention for Green Hydrogen Transition –(SIGHT)

Strategic Intervention for Green Hydrogen Transition –(SIGHT)

The goal of decarbonizing the industry by replacing old fossil fuels with green hydrogen would require a great deal of support from the government because it is in the early stage of development. Green Hydrogen is made by splitting water into its elements, oxygen and hydrogen, through a process called electrolysis.

This green hydrogen is anticipated to be a significant component of oil refineries, steel mills, and fertilizer facilities. Additionally, it can substitute coal in steel mills and fossil fuels in long-distance transportation such as trucking and shipping. The government has introduced "The Energy Conservation Bill," which guarantees the effective use of "energy" resources to boost renewable energy. India promised during the 2021 COP-26 session that it might be necessary for initiatives aimed at energy efficiency to lower the economy's carbon intensity by 45% by 2030 compared to 2005 levels and to reduce carbon emissions overall by one billion tonnes by 2030.

Source: World Bank ESMAP Components

 

Classification and Production of  Hydrogen

 

Hydrogen's classification facilitates the prompt identification of the environmental impact of its production by various parties, including policymakers, corporate executives, and environmentalists.

 

 

Grey -Hydrogen- The steam methane reforming (SMR) method uses high-temperature steam (700°C–1,000°C) to manufacture hydrogen from a methane source, like natural gas. These methods mostly tend to use carbon-intensive methods.

Blue-Hydrogen- The same procedure as grey hydrogen is used for blue hydrogen, except this time, carbon is sequestered and kept. This greatly improves its environmental friendliness but also adds significant cost and technological obstacles.

Green Hydrogen - Green hydrogen is produced by splitting water into hydrogen and oxygen through electrolysis instead of burning fossil fuels. Hydrogen is called green if produced using a renewable energy source, such as solar or wind power.

 

 

India's Green Hydrogen Race: Reliance and Adani Enterprise Lead the Charge Towards a Sustainable Future

 

• Reliance Industries

Reliance Industries Chairman Mukesh Ambani announced plans to shift from Grey to Green Hydrogen production starting in 2025. The company has partnered with climate technology company Stiesdal to accelerate cost reduction and deployment of their Pressurized Alkaline Electrolyzer technology.

 

• Adani Enterprises

To decarbonize the world's third-largest polluter, India, the conglomerate of Indian billionaire Gautam Adani and French behemoth Total Energies SE intend to invest $5 billion to generate green hydrogen and associated products in India.

According to a news statement from Total Energies,  Adani New Industries Ltd. would first invest about $5 billion to produce urea and replace fertiliser imports to create 2 gigawatts of hydrogen-producing electrolyzers powered by a 4-gigawatt solar and wind farm. Eventually, the project hopes to produce one million tons of green hydrogen annually by 2030, supported by 30 gigawatts of clean power.

 

 

India's Green Energy Landscape: A Multifaceted Approach

India's comprehensive plan to advance and grow the green energy sector domestically is outlined in the path map. It showcases various key initiatives and schemes encompassing the entire green energy value chain, from production to transmission and distribution.

 

From Policy to Production

The National Green Hydrogen Mission, approved by the Union Cabinet on January 4, 2023, has an outlay of ? 19,744 crore and is being implemented by the Ministry of New and Renewable Energy. The mission's main goal is establishing India as the world's centre for producing, using, and exporting green hydrogen and its by-products. Under the “Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme” of the National Green Hydrogen Mission, a Request for Selection (RfS) has been issued for the selection of Green Hydrogen producers for setting up production facilities of 450,000 tons for Green Hydrogen in India.TheMinister of Petroleum and Natural Gas said India would become the world leader in green hydrogen production.

Oil India Limited has already put into service India's first 99.99% pure green hydrogen facility at Jorhat, eastern Assam, to meet targets by 2030.

Source- Mint

 

The Rise in Demand for Green Hydrogen

The Ministry of New and Renewable Energy estimates that the national hydrogen mission may raise the proportion of green hydrogen to 46% of all hydrogen consumption by 2030, further improving the market share between 2025 and 2030.

India's green hydrogen sector is at a turning point and has room to expand quickly. A report jointly produced by the Rocky Mountain Institute and NITI Aayog predicts that India's hydrogen demand will quadruple by 2050, with 52% of the demand coming from the country's heavy-duty transportation and steel sectors.

 

Challenges and Mitigation Strategy

India's transition to green hydrogen as a leading renewable energy source is marked by challenges and opportunities. While the nation boasts abundant renewable resources, scaling production to match demand requires substantial investment and supportive policies. Developing robust infrastructure for storage and transportation is vital for making green hydrogen accessible and cost-effective. Compared to fossil fuels, high production costs necessitate incentives and technological advancements to level the playing field. To address these challenges, government backing through financial incentives, regulatory fine-tuning, and a clear policy framework is crucial for encouraging investment and innovation. Collaboration between the government and private sector is needed to build a comprehensive network for storage and distribution. Continuous investment in research and development is key to improving efficiency and reducing production costs. Promoting green ammonia production from green hydrogen can address agricultural needs and enhance energy security. International collaboration can facilitate knowledge sharing and technology transfer and create export avenues. Lastly, stimulating demand by identifying industrial users and providing targeted incentives can establish a stable market for green hydrogen, driving down costs through economies of scale.

By addressing these challenges and implementing effective mitigation strategies, India can unlock the immense potential of green hydrogen and accelerate its transition towards a sustainable energy future.