Green Hydrogen Energy: India plans to produce 5 million tonnes of green hydrogen by 2030

Energy revolution: Green Hydrogen Energy
Energy revolution (Image: Canva)

Green Hydrogen Energy: India is the third-largest consumer of fossil fuels in the world. The Indian government is aiming to drastically boost India’s dependence on green fuel.

According to reports, the Ministry of Power on Thursday, 17 February 2022 said that India plans to produce 5 million tonnes of green hydrogen per annum by 2030.

On 17 February, the Ministry of Power launched the first phase of the Green Hydrogen Policy to meet the target of 5 million tonnes of green hydrogen by 2030 as a first step to enabling the hydrogen ecosystem.

The price of fuel in India is increasing from June-July 2021, its main reason is the increasing demand for fuel and the need to import crude oil. According to the Indian Oil Corporation Limited (IOC), the GHP measures will reduce the cost of green hydrogen production by up to 50%.

India has to face a lot of significant barriers to this hydrogen economy parasite, its challenges are high cost, and lack of public awareness.

India’s most significant challenge is to develop and demonstrate such green hydrogen technology which is economically viable, cost-competitive, and environmentally sustainable.

It takes about 50 kWh of electricity to produce 1 kg of green hydrogen with an electrolyzer efficiency of 70%.

It is also essential to create a robust delivery mechanism for these technologies so that they are available to the public.

According to the reports, currently, all hydrogen in India is made from fossil fuels and no company generates a major portion of revenue from green hydrogen. But by 2050, three-quarters of the hydrogen will be made from green sources.

Many companies are focusing on producing Green Hydrogen Energy. Together with that, this step can also help in making India a Green Hydrogen Exporting Country.

What is Green Hydrogen Energy?

Hydrogen energy is a type of clean energy that has a very wide range of applications. Hydrogen is divided into three categories:

  1. Green Hydrogen: Produced by renewable electricity.
  2. Blue Hydrogen: This is produced by the combustion and storage of fossil fuels with carbon.
  3. Grey Hydrogen: This is produced by the combustion of fossil fuels.

India’s Green Hydrogen Policy

According to reports, further India is aiming to incentivize green hydrogen and green ammonia production according to its new plans. Separate manufacturing zones will be set up in the country, no transmission fee will be charged between the states for 25 years and priority connectivity will be given to this industry for grid supply.

Access cost of electricity determines the cost of production which ranges from ₹3.70 to ₹7.14 per kWh, at this rate green hydrogen will be made at a cost of about ₹500 per kg, which is about 3.5 times the cost of gray hydrogen.

If a hydrogen ammonia manufacturing company wants to go towards green energy, then it can purchase renewable power from power exchange or can set up new capacity anywhere on its own.

In the new policy, the Port Authority will make land available to Green Hydrogen and Green Ammonia producers so that they can use that land as storage before export.

According to a part of the new policy, such renewable energy plants that will be set up before July 2025 will be given free power transmission for 25 years to supply power to green hydrogen energy production.

Apart from this, producers will not need to pay any charges for transfers between states. This will make the users of hydrogen and ammonia such as steel manufacturing, oil refineries, and fertilizers very economical.

This policy is a major step in building a competitive green hydrogen sector in India. The green hydrogen policy can reduce the cost of green hydrogen production and it can make India the cheapest green hydrogen producer globally.

Green hydrogen can be the future of energy and many companies are exploring its potential, it is being seen as the best solution to achieve zero-emission. Green hydrogen is created through electrolysis and requires only water, a large atelier, and electricity.

The electric current splits water into its two components hydrogen and oxygen. According to reports, Currently, over 2% of total global CO2 emissions come from hydrogen production.

The Prime Minister of India has said, “We have to make India a global hub of green hydrogen production and export.” The Indian government has proposed to spend Rs 800 crore on green hydrogen energy production.

The Indian hydrogen market was valued at $50 million in 2017 and is expected to grow to $81 million by 2025. In this way, the CAGR calculation for the next 5 years comes to 6.3%.

India’s import dependence can be reduced by reducing the dependence on fossil fuels in hydrogen production and this will reduce the existing annual import bill.

The steel industry, fertilizers, and refineries are significant hydrogen consumers in India. India is currently in the early stages of Green hydrogen development.

According to reports, it is predicted that by 2050 the demand for green hydrogen will be 23 metric tonnes. India’s young demography and thriving economy, there is a huge market opportunity for the government.

The applications of green hydrogen will be governed and there will be long-term benefits for this market.

India has the potential to reduce the cost of green hydrogen. This is possible because India can use the experience gained from low-cost renewable generating plants and solar and wind reverse options to save money and create green energy.

Apart from this, the new green hydrogen policy announced by the government can make India the globally cheapest green hydrogen producer.

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FAQs about India’s Green Hydrogen Policy

When was India’s Green Hydrogen Policy launched?

On Thursday, 17 February 2022, the Ministry of Power launched the first phase of the Green Hydrogen Policy to meet the target of 5 million tonnes of green hydrogen by 2030 as a first step to enabling the hydrogen ecosystem.

How many rupees has the Government of India proposed to spend on green hydrogen power generation?

The Indian government has proposed to spend Rs 800 crore on green hydrogen energy production.

How much is the Indian hydrogen market expected to be by 2025?

The Indian hydrogen market was valued at $50 million in 2017 and is expected to grow to $81 million by 2025.

What will be the demand for green hydrogen by 2050?

According to reports, it is predicted that by 2050 the demand for green hydrogen will be 23 metric tonnes.

How much electricity does it take to produce 1 kg of green hydrogen?

It takes about 50 kWh of electricity to produce 1 kg of green hydrogen with an electrolyzer efficiency of 70%.