National Green Hydrogen Mission: Some Aspects

10 July 2024

Introduction

The launch of a National Hydrogen Mission (NHM) was first announced by the Government of India on August 15, 2021, on the occasion of India’s 75 years of Independence.

Later, in January 2022, the Union Cabinet under the supervision of the prime minister approved it as the National Green Hydrogen Mission (NGHM). Thereafter, on January 4, 2023, the Government of India launched NGHM with an initial outlay of Rs 19,744 crore. Sharing his vision, the prime minister said that by the 100th year of independence 2047, India should attain self-sufficiency in energy by using electric means of conveyance, producing fuel with renewable sources of energy, installing a network for CNG supply throughout the country and increasing its usage, and mixing 20 per cent ethanol in petrol.

The mission is expected to transform the energy landscape of India.

About the National Green Hydrogen Mission

The NGHM is a significant initiative of the Government of India regarding the green energy. The mission is meant to create awareness about the importance of renewable sources of energy and promote their usage in day-to-day life. It also focuses on reducing carbon emissions. With this mission, India’s initiatives will be aligned with the best practices in policy, regulation, and technology that are followed globally. By using green hydrogen, our country will have a quantum leap in meeting its targets.

Main Objectives of the Mission

To make India a hub of green hydrogen, and become the largest producer and exporter of green hydrogen in the world
To develop opportunities for exporting green hydrogen as well as its derivatives
To decrease the reliance on fossil fuels and feedstock that is imported
To build domestic manufacturing units
To encourage investment in the industry and generate more business opportunities
To generate employment opportunities, which will lead to economic growth and development
To promote research and development projects

Proposed Mission Outcomes by the Year 2030

To build green hydrogen production capacity of minimum 5 million metric tonnes (MMT) annually along with around 125 gigawatts (GW) of the related renewable energy capacity addition in the country
To have cumulative reduction of more than Rs 1 lakh crore in fossil fuel imports
To reduce the greenhouse gas emissions by around 50 MMT annually
To invest more than Rs 8 lakh crore
To generate more than 6 lakh job opportunities

Green Hydrogen and Green Ammonia Policy

Green hydrogen and green ammonia are regarded as the ‘fuels of the future’ that can easily replace fossil fuels in the future. These will ensure sustainable energy security of the nation. International organisations, environmentalists, activists, and the governments around the world have agreed to the fact that certain mandatory measures are required to be taken so that global warming reduces to 1.5 °C.

A number of countries around the world have taken the pledge to contribute nationally so that energy transition can smoothly take place and emissions can be significantly reduced. They have made a commitment of net-zero targets.

Harmful emissions can be reduced mainly by transitioning fossil fuel energy to green hydrogen and green ammonia energy. Several policy measures were considered by the Government of India to enable this transition. Green hydrogen and green ammonia will be used as both ‘energy carriers’ and ‘chemical feed stock’ for different sectors. In this regard, the Ministry of Power has laid down a Green Hydrogen Policy so that the concerned stakeholders can comply with and implement it.

Hydrogen—An Emerging Source of Energy

Apparently, hydrogen can prove to be an important source of energy, for it does not have any carbon content and it does not pollute the environment. On the contrary, hydrocarbons consist of net carbon content of around 75–85 per cent. It is projected that hydrogen will reduce carbon emissions drastically. Hydrogen contains the highest energy content in terms of weight; while in terms of volume, there is the lowest energy content in it.

According to the International Renewable Energy Agency (IRENA), by 2050, around 6 per cent of total energy consumption shall be constituted by hydrogen. At present, the global demand for hydrogen is 70 MMT per annum. Out of this, over 76 per cent is generated from natural gas, 23 per cent is generated from coal, and the remaining is generated from electrolysis of water. The main use of hydrogen is in petrochemicals and fertiliser industry.

Types of Hydrogen

Hydrogen can be classified into three types—grey, blue, and green hydrogen—on the basis of the method of its extraction.

Majority of hydrogen is produced from natural gas in industries, which releases massive quantities of carbon dioxide into the atmosphere. This type of hydrogen is known as grey hydrogen.

Blue hydrogen is that type of hydrogen that is produced with carbon capture and storage technology, i.e., a carbon offset technology. This is eco-friendlier than the grey one.

Green hydrogen is that type of hydrogen which is produced using renewable energy sources and which does not emit any carbons. This is the most eco-friendly hydrogen.

Production of green and blue hydrogen is emphasised because of the aforementioned reasons. Besides, a number of major organisations are working on developing the technology that is capable of transforming plastic and bio waste into hydrogen. This type of technology will serve two purposes–energy production and, waste management.

Importance of Green Hydrogen

Green hydrogen is produced with the help of renewable energy sources—by electrolysis of water through renewable electricity. It is expected to play an important role in dealing with climate change, thereby leading to a sustainable energy future.

In today’s times, people are more aware of environmental issues and are investing in renewable energy sources, including wind, solar, and hydroelectric power. As they cannot be consistently available, they cannot fulfil the demands of heavy industries. So, there are certain limitations of these sources. Therefore, hydrogen is a promising energy source, which is not only environmentally friendly but also multipurpose.

Green hydrogen can be extremely beneficial for India considering the ever-increasing population and rising energy demands. Green hydrogen can meet these demands along with regulating carbon emissions and reducing the dependence on fossil fuels.

Strategic Intervention for Green Hydrogen Transition (SIGHT) Programme

The main element of this mission is the SIGHT programme, which will enable the development of the green hydrogen ecosystem. Besides, it will assist India in obtaining self-reliance in energy and environmental sustainability.

This programme clearly defines the objectives and allocates adequate finances to various aspects of hydrogen development. It is evident from the SIGHT programme that the government is committed to producing green hydrogen and locally developing electrolysers for the same. Thus, SIGHT plays a vital role in reshaping the energy landscape of India. One of the most important goals of SIGHT is to promote the manufacturing of electrolysers and production of green hydrogen within the country itself by giving guidance and incentives.

As for transparency and accountability, wide-ranging guidelines for various incentive schemes regarding green hydrogen and electrolyser production have been issued by the government. Thus, the stakeholders get a defined roadmap for their work. Besides, these guidelines form the basis for the growth of green hydrogen sector in India.

Potential Uses of Hydrogen Energy

In industry sector Hydrogen can be used in the manufacturing of iron and steel instead of coal and coke. While manufacturing steel, a large amount of carbon is emitted into the atmosphere. Hydrogen can decarbonise the industry sector, which will considerably change the climatic condition of the world.
In reducing import of fossil fuel Currently, nitrogenous fertilisers and petrochemicals are being produced by mainly using grey hydrogen. If green hydrogen replaces the grey one, renewable energy will be used in these sectors, which will reduce the reliance on import of fossil fuels. Besides, coking coal imports can also be reduced by using hydrogen in the steel industry.
Similarly, green ammonia should be used to reduce the natural gas import.
In transport sector Hydrogen fuel is used to run fuel cell electric vehicles (FCEVs). For a few passengers travelling for a shorter distance, battery electric vehicles (BEVs) are the most appropriate. But for carrying heavy loads for a longer distance, FCEVs are better suited.
BEVs require cobalt and lithium for lithium-ion batteries, which need to be imported. However, hydrogen fuel cell can be produced domestically, which will make India self-reliant in the clean transportation sector.
For integrating renewable energy Intermittent renewable energy can be stored using hydrogen so that its output can become stable. Surplus energy can be converted into hydrogen which can later be used for grid support and other purposes.

Green Hydrogen Production in India

In 2020, the demand for hydrogen in India was 6 million tonnes (MT) per annum. The costs of hydrogen will expectedly reduce to half of what it is at present by 2030.
By 2050, the demand for hydrogen will be 28 MT, i.e., five times of the current demand. Some 80 per cent of such a demand will possibly be of green hydrogen.
India aims to export hydrogen to Japan, Europe, and South Korea.
Several leading multinational corporations, such as Gas Authority of India Limited (GAIL), Indian Oil Corporation (IOC), National Thermal Power Corporation (NTPC), Reliance Industries Limited (RIL), and Larsen and Toubro (L&T), have planned to venture into green hydrogen sector. RIL has decided to transform itself into a net-zero carbon firm by 2035. So, the company has decided to invest around Rs 750 billion in renewable energy in the next three years.
lSo far, some industries have manufactured different hydrogen-driven vehicles. For example, IIT Delhi together with Mahindra & Mahindra manufactured two hydrogen-fuelled Internal Combustion Engine Buses; Tata Motors Ltd., developed six–cell Buses; and Indian Oil Corporation (IOC) in coordination with the Government of NCT of Delhi has manufactured 50 buses powered by H-CNG, i.e., CNG rich in hydrogen.

Conclusion

Among other advantages, the National Hydrogen Mission of India will make India to be energy independent. It will also decarbonise the important sectors of the economy. To fulfil the objectives of the mission, central and state governments, their related departments, ministries, institutions and agencies will have work in coordination with one another. The mission will be coordinated and implemented by the Ministry of New and Renewable Energy (MNRE).