Green hydrogen, produced through the electrolysis of water using renewable energy, holds immense potential for decarbonizing India's energy sector. Given India's abundant renewable energy resources and the strategic push towards a hydrogen economy, green hydrogen could become a cornerstone of India's clean energy transition by 2030.

 

Current Scenario

India is taking significant steps to establish a green hydrogen economy. The government announced the National Hydrogen Energy Mission (NHEM) in 2021, aiming to scale up hydrogen production and utilization. As of 2023, India’s green hydrogen production capacity is still in its nascent stages but is poised for rapid expansion.

Green Hydrogen Production 

• Electrolyzer Capacity: As of mid-2021, the global capacity of electrolyzers was just over 300 MW. India's share in this capacity is minimal, but plans are underway to significantly expand electrolyzer installations. By 2030, India aims to achieve a green hydrogen production capacity of 5 million tons per annum (MTPA).
• Renewable Energy Integration: India’s ambitious renewable energy targets, with 175 GW of installed renewable capacity by 2022 and 450 GW by 2030, provide a strong foundation for green hydrogen production.

Applications and Benefits

• Steel Production: The steel industry is one of the largest emitters of CO2. Replacing coke with green hydrogen in steelmaking can significantly reduce emissions. Projects like those by Tata Steel in Jamshedpur aim to use green hydrogen to cut down emissions by up to 50%.
• Fertilizer Production: Fertilizer plants in India, such as the Namrup plant in Assam, are exploring green hydrogen for ammonia production, potentially reducing CO2 emissions by 2.5 million tons annually across the sector.
• Energy Storage and Grid Balancing: Green hydrogen can serve as a long-term energy storage solution, helping to balance the grid and manage the intermittency of renewable energy sources. Pilot projects are exploring the use of hydrogen for energy storage at solar and wind farms.
• Transport Sector: Fuel Cell Vehicles (FCVs): India is testing hydrogen fuel cell buses and trucks. In Gujarat, hydrogen-powered buses are being deployed, with each bus capable of reducing CO2 emissions by approximately 100 tons annually.
• Hydrogen Trains: Indian Railways is piloting hydrogen-powered trains, which could save about 11.2 kg of CO2 emissions per km compared to diesel trains.
• Power Generation: Hydrogen can be used in gas turbines for power generation, offering a clean alternative to coal and natural gas. NTPC, India's largest power utility, is exploring hydrogen blending with natural gas for power generation.
• Residential and Commercial Heating: Green hydrogen can be used for heating applications, reducing reliance on natural gas. Pilot projects in urban areas are testing hydrogen boilers and heaters.

Key Technology

• Electrolyzer Cost Reduction: The cost of electrolyzers is expected to decrease as, cost of PEM electrolyzers, currently between $800 and $1,400 per kW, could fall to around $300 per kW by 2030 in India.
• Cost of Green Hydrogen: Green hydrogen production costs have already fallen by 40% since 2015, by 2025, the cost in India could reach $2/kg, making it competitive with fossil-based hydrogen, which costs about $1.80/kg.
• Advanced Materials and Technologies: Innovations in catalyst materials and membrane technologies are improving the efficiency of electrolyzers. The Indian Institute of Technology (IIT) Madras is developing new catalysts that could reduce the cost and increase the efficiency of hydrogen production.
• Infrastructure Development: Building a robust hydrogen infrastructure, including storage, transport, and distribution networks, is critical. India plans to develop hydrogen corridors and establish hydrogen refueling stations along key industrial and transport routes.

Case Studies

• Indian Oil Corporation (IOC) Green Hydrogen Project: IOC has launched a pilot project to produce green hydrogen at its Mathura refinery using renewable energy. The project aims to replace fossil-based hydrogen used in refining processes. This initiative is expected to reduce CO2 emissions by approximately 33,000 tons per year.

• NTPC Hydrogen Blending Project: NTPC is conducting trials to blend 20% hydrogen with natural gas for power generation at its Kawas gas power plant in Gujarat.

• Hydrogen Fuel Cell Buses in Delhi: In partnership with Tata Motors, the Delhi government is testing hydrogen fuel cell buses to reduce urban air pollution and greenhouse gas emissions. Each hydrogen fuel cell bus can reduce CO2 emissions by about 25 tons per year compared to diesel buses, contributing to cleaner urban transport.

• Tata Steel Green Hydrogen Project: Tata Steel is piloting the use of green hydrogen in steel production at its Jamshedpur plant. The project aims to replace a portion of the coke used in blast furnaces with green hydrogen, project could reduce the plant's CO2 emissions by up to 50%, equivalent to approximately 1 million tons of CO2 annually.