India is growing more aware of the need for sustainable solutions in the midst of a climate crisis; progressively experiencing intense droughts, downward shifts in average rainfall and intra-seasonal rainfall, and a higher frequency of cyclones. India’s largest sector (even more so during the pandemic) – agriculture, has been in a vulnerable position due to this, a fact highlighted by the 2019-2020 annual RBI Report. In 2019 alone, eight cyclones along with sharp volatility in rainfall led to “an increase in the extent of crop area damaged.” The costs incurred are manifold; social, economic, and environmental. Saudamini Das, a professor at the Institute of Economic Growth estimates that “around 3% of the GDP will be spent on countering (climate change)’s adverse impact”.
As pollutants wreak havoc on our atmosphere and biosphere, there is also the danger of finite sources being eroded, along with the ignominy of being fuel-dependent on other countries to fulfil domestic consumption. There have been several policies articulated in order to make this clean energy transition, in line with specified targets set under India’s Intended Nationally Determined Contributions (INDCs). One of which is to achieve 40% of electric power installed capacity from non-fossil fuel by 2030 – approximately 450 GW renewable energy by the year 2030. Other intended contributions are: to reduce the emissions intensity of the Gross Domestic Product (GDP), enhance carbon sinks, deploy adaptation strategies for those sectors most vulnerable to climate change, mobilize finance, technology development and transfer, and broad-based ones like promotion of “sustainable lifestyles” and cleaner economic development.
Because hydrogen does not exist freely in nature and is only produced from other sources of energy, it is known as an energy carrier. It is a clean-burning fuel, and when combined with oxygen in a fuel cell, hydrogen produces heat and electricity with only water vapor as a by-product. This gives it immense potential in the world of energy production and decarbonisation.
Among a spate of 2021 Independence Day announcements, Prime Minister Narendra Modi announced the National Hydrogen Mission. This first entered public discourse as a proposal put forth under the Budget 2021. Its complete details are yet to emerge.
For the first phase of the mission, specific activities have been identified and the financial outlay of Rs. 800 crores is proposed from 2021 to 2024, said officials. This public funding support for pilot projects, infrastructure development and R&D is expected to be leveraged with investments of around Rs 11000 crores from industrial and institutional stakeholders.
Earlier this year, Ex-minister of Petroleum and Natural Gas, Dharmendra Pradhan announced pilot projects on Blue Hydrogen, Hydrogen CNG (H-CNG) and Green Hydrogen, underscoring the need to “diversify our energy basket”. Mr. Pradhan said that hydrogen is also capable of aligning with the Ministry’s other flagship schemes, like the promotion of compressed biogas under the Sustainable Alternatives Toward Affordable Transportation (SATAT) scheme, promoting the gas-based economy, and other initiatives on Waste-to-Energy.
The utility of hydrogen is not going to be limited only to the transport and domestic cooking sector. The maturity of the ecosystem can be accelerated through its usage as a decarbonizing agent for a range of sectors, including industry covering chemicals, iron, steel, fertilizer and refining, transport, heat and power. Furthermore, the infrastructure for CNG that is already in place pan-India would come in handy during this transition.
The Ministry of New and Renewable Energy has also been supporting a broad based Research Development and Demonstration (R&D) programme on Hydrogen Energy and Fuel.
According to a recent report by The Energy and Resources Institute (TERI), hydrogen demand in India was close to 6 million ton per year in 2020, with most of the demand coming from ammonia production and refineries. Most hydrogen in the nation is produced using natural gas through steam methane (CH4) reforming and is used in the refinery and fertilizer industries. This hydrogen is “gray,” as the carbon byproduct leads to CO2 generation.
There are 3 main types of hydrogen, differentiated by the processes used to arrive at them:
Grey Hydrogen: Grey Hydrogen is hydrogen produced using fossil fuels such as natural gas. Unfortunately this accounts for roughly 95% of the hydrogen produced in the world today.
Blue Hydrogen: Blue Hydrogen is hydrogen that meets the low-carbon threshold but is generated using non-renewable energy sources (e.g. nuclear)
Green Hydrogen: Green Hydrogen is hydrogen that not only meets the low-carbon threshold but is generated using renewable energy sources such as solar or wind.
Therefore, the production of Green Hydrogen is a priority.
Modi said “green hydrogen will play a crucial role in helping the nation to mitigate climate change”, while also emphasizing that “India should become a global hub for green hydrogen production and exports”. His vision stems from the fact that India annually spends over 12 lakh crore on importing energy, outlining that “we need to become energy independent before 100 years of independence is completed”.
Eight recommendations in the white paper titled ‘India Green Hydrogen Economy Roadmap’, prepared after public-private consultations, include:
- National Hydrogen Policy and Roadmap by 2021 to be prepared
- Creation of IndiaH2 Hydrogen Taskforce and Workgroups to implement roadmap
- Green Hydrogen Investment Fund of $100 million to be deployed through 2025, with a larger Hydrogen Fund to be raised for 2025-2030
- National aspiration for 4 percent hydrogen share in national energy mix by 2030
- Inter-ministerial hydrogen government body for adherence to global harmonised standards
- Green hydrogen production and use cases in key regions, with some coal-gasification and gas-powered grey hydrogen projects as interim step
- Ten potential IndiaH2 national projects identified including 10,000 hydrogen-powered heavy-duty truck fleet and infrastructure on Delhi–Mumbai Industrial Corridor; IndiaH2 industrial clusters in ports, logistics, steel, fertiliser, mining sectors; municipal bio-gas hydrogen projects
- Fiscal incentives for large-scale national H2 projects and formation of industry consortia
This nation is witnessing a lot of movement in the regulatory realm, with a whole host of projects and opportunities to keep an eye out for – particularly in the energy and technology sectors. TLGS Consulting Group would like to help foster innovations at this highly important and increasingly lucrative intersection.
We would also like to hear your thoughts! How could the National Hydrogen Mission help India with its international commitments? What do you think of a GH2-EV (gaseous hydrogen-electric vehicle) national energy transition strategy? How would you disrupt the hydrogen economy?