The Union Cabinet approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore on January 4, 2023 which was launched by PM Modi on August 15, 2021. The Government aims to make India a global hub for the production of green hydrogen and a big exporter in the field of green energy. It would help India, one of the biggest greenhouse gas (GHG) emitters, achieve net-zero carbon emissions by the year 2070. The ultimate aim of the government is to fuel key sectors of the economy such as oil refineries, automobiles, and steel plants, etc. using carbon-free hydrogen.
Hydrogen is made by splitting water through an electrical process called ‘electrolysis’. Electrolysis process uses a device called electrolyser that is entirely powered by renewable energy. In this process, oxygen is the by-product.
The mission outlay includes an outlay of about Rs 17,490 crore for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT); Rs 1,466 crore for pilot projects; Rs 400 crore for Research and Development (R&D), and Rs 388 crore for other mission components. The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.
In order to achieve its goals, the Mission will be implemented in two phases:
Phase I (2022-23 to 2025-26) Its focus will be on creating demand by increasing the supply of the domestic electrolysers in large numbers. This phase will also lay the foundations for future energy transitions in other hard-to-abate sectors by giving thrust on the R&D. Also, pilot projects will be undertaken to initiate green transition in steel production, heavy-duty mobility, and shipping.
Phase II (2026-27 to 2029-30) In this phase, Green Hydrogen costs are expected to become competitive with fuel based alternatives, resulting in an increment in the growth of production. Pilot projects will be undertaken in the sectors like railways, aviation, etc. R&D will be increased for continuous development of the products.
The National Green Hydrogen Mission would result in the following likely outcomes by 2030:
- Development of green hydrogen production capacity of at least 5 million metric tonnes (MMT) per annum, with an associated renewable energy capacity addition of about 125 gigawatts (GW) in the country
- Creation of over six lakh jobs with an investment of over Rs 8 lakh crore
- Cumulative reduction in fossil fuel imports of over Rs 1 lakh crore
- Abatement of nearly 50 MMT of annual GHG emissions
The mission would have wide ranging benefits including, creation of export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility, and energy sectors; less dependence on imported fossil fuels and feedstock; and development of indigenous manufacturing capabilities. It would also create employment opportunities and would develop cutting-edge technologies.
Potential of Hydrogen as a Clean Fuel
Hydrogen is a clean molecule and it is the most common element in nature. However, it exists only in combination with other elements. It has to be extracted with huge amount of energy from naturally occurring compounds like water (H2O) (a combination of two hydrogen atoms and one oxygen atom).
Since the past 150 years, hydrogen has been considered as a source of clean energy. It was only after the hike in oil prices in the 1970s that the possibility of hydrogen replacing fossil fuels came to be considered vigorously. After that, three car manufacturers, Honda and Toyota of Japan, and Hyundai of South Korea, decided to commercialise this technology, although on a limited scale.
Types of Hydrogen
Hydrogen is categorised into three based on the sources and processes by which hydrogen is derived. Grey hydrogen, which constitutes the bulk of the hydrogen and is generated in the present days, is produced from fossil fuels. Hydrogen generated from fossil fuels with carbon capture and storage options is called blue hydrogen. Green hydrogen, which is clean, is generated using electrolysers, powered by renewable power sources.
Potential of Green Hydrogen
Green hydrogen is a clean burning molecule that can decarbonise iron and steel, chemicals, and transportation. Furthermore, renewable energy could not be stored or used by the grid, but could be channelled to produce hydrogen.
The current cost of green hydrogen in India is 350–400 per kilogram as it is not commercially viable. The National Green Hydrogen Energy Mission aims to make it viable only at a production cost of under Rs 100 per kilogram.
The government also plans to target and drop the cost of renewable power generation with unreserved subsidy support and a government-backed R&D push. Also, the government wants to bring down the cost of electrolysers to make the production of green hydrogen cost-competitive. Green hydrogen has the potential to replace fossil fuels and fossil fuel-based feedstocks in fertiliser production, petroleum refining, steel production, and transport applications. The United States and the European Union have already pledged incentives worth several billions of dollars for green hydrogen projects.
Public-Private Partnership
The government plans an enabling policy framework to set up the green hydrogen ecosystem with a public-private partnership for R&D. In this regard, the Strategic Hydrogen Innovation Partnership (SHIP) would be facilitated. According to the policy, green hydrogen/ammonia manufacturers could set up green energy projects or procure the same from energy exchanges. The policy also includes several waivers such as interstate transmission charges, ease of getting open access, and transmission connectivity, etc.
Many leading corporates have announced either investment or consumption plans for green hydrogen such as Adani Enterprises, Reliance Industries, Tata Group, JSW Energy, Larsen & Toubro, ACME Group, ReNew Power, and others. Ashok Leyland, India’s leading commercial vehicle manufacturer, is looking at a tie-up to run a section of its fleet on green hydrogen. Indian Oil Corporation Ltd’s R&D centre had earlier carried out trials of hydrogen fuel cell buses in collaboration with Tata Motors Limited. India’s first green-hydrogen factory has been commissioned by US-based Ohmium International in Karnataka.
The incentive programme would make the green molecule from India competitive. This would be required for the initial few projects and to create green hydrogen hubs, which would allow supply chains to be established and the scale of production to be increased. Green hydrogen subsidies and support programmes have been offered by several nations.
Fuel Cells and its Working
Hydrogen is an energy carrier and not a source of energy, so it is transformed into electricity by a device, called a fuel cell stack. After the transformation, hydrogen can be used to power an automobile.
A fuel cell converts chemical energy into electrical energy using oxidising agents through an oxidation-reduction reaction. Vehicles based on fuel-cell most commonly combine hydrogen and oxygen and produce electricity to power the electric motor on board. Such vehicles are called electric vehicles (EVs).
Hydrogen fuel cars have a near-zero carbon footprint as electric chemical reaction is much more efficient than combustion.
Way Forward
India’s electricity grid is predominantly coal-based and would continue to be so as coal would have to be burnt to generate the electricity to power these vehicles. Several countries are pushing EVs, for which much of the electricity is generated from renewable such as Norway where around 99 per cent EVSs use hydroelectric power.
A high-level working group has been set up by Kerala for its own Hydrogen Economy Mission to devise a strategic roadmap, policy formulations, and implementation plans to make investments easy in green hydrogen, and to make the state “a green hydrogen hub”.
Hydrogen vehicles could be especially effective in long-haul trucking and other hard-to-electrify sectors, such as shipping and long-haul air travel.
© Spectrum Books Pvt Ltd.