Introduction
In the visionary words of the Indian Prime Minister spoken from the ramparts of Red Fort on 15 Aug 2021, ‘Not only will Green Hydrogen be the basis of green growth through green jobs but it will also set an example for the world towards green energy transition.’ This resounding statement from the highest echelons of Indian leadership underscores the nation’s commitment to embrace green hydrogen as a transformative energy source. In a world grappling with environmental challenges and seeking sustainable energy solutions, green hydrogen emerges as a beacon of hope and innovation. The Indian National Green Hydrogen Mission, launched in Jan 2023 aims to make India energy independent, decarbonise major economic sectors and turn nation into a global hub to produce, utilize export Green Hydrogen and its derivatives. In a world grappling with environmental challenges and seeking sustainable energy solutions, green hydrogen emerges as a beacon of hope and innovation.
What is Green Hydrogen and why is it important?
Hydrogen is the most abundant element in the universe. However, it does not exist in the earth’s atmosphere and is required to be produced through artificial means. Green Hydrogen specifically relates to hydrogen production methods using only renewable energy. Operating at scale, Green Hydrogen and hydrogen-based fuels could play a central role in decarbonization of the global energy system and energy transition.
One of its key advantages of Hydrogen is that it is the perfect complement to renewable sources like wind, solar and hydel owing to its capability to generate on-demand power when output from renewable sources cannot match demand. Hydrogen is the only non-carbon fuel which can potentially decarbonize sectors like industries, mobility and power generation. Hydrogen could help decarbonize hard-to-electrify heavy mobility sectors like shipping, railways, heavy trucks and buses. The International Energy Agency’s (IEA) Global Hydrogen Review 2022 notes positive signs of progress in this field recently, as the first fleet of trains powered by hydrogen fuel cells began operating in Germany. India has already launched Hydrogen Fuel Cell buses in Delhi and will be rolling out its first domestically designed and built hydrogen-powered train by December 2023. Today, most of the hydrogen is used by refining and chemical industry. Demand for industrial use has tripled since 1975 and its potential as an energy transition fuel could see demand grow exponentially.
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Advancements in Green Hydrogen Technologies- Global Scan
The global quest for clean energy is disrupting the fossil fuel-based world order. Hydrogen could account for up to 12% of global energy use by 2050, leading to the rise of new energy superpowers. But who are the frontrunners in the race to adopt and scale up green hydrogen and other low-carbon fuels affecting political and economic changes in the energy landscape. A report from the International Renewable Energy Agency (IRENA), called ‘Geopolitics of the Energy Transformation: The Hydrogen Factor’ lists leaders in developing policy initiatives, technology and export facilities to promote green hydrogen value chains – all of which are needed if the world is to decarbonize sectors like steel making, shipping and transportation.
(a) China. China consumes and produces more hydrogen than any other country – its current annual usage is more than 24 million tons. Most of the country’s production is ‘grey’ hydrogen, generated using fossil fuels like coal, however, more than 30 green hydrogen projects have been setup since 2019. China announced first hydrogen roadmap in 2016. It has the world’s third-largest fuel cell electric vehicle (FCEV) fleet and is a pioneer in developing fuel cell trucks and buses. China’s five-year economic plan recognizes hydrogen as one of the six industries of the future.
(b) The European Union. Having issued its National Hydrogen Strategy in 2020, the EU has recognized hydrogen as a key technology for achieving policy goals such as the ‘European Green Deal’. The bloc’s strategy is heavily focused on emissions-free green hydrogen, with a target to install 40 gigawatts of renewable hydrogen electrolyzer capacity by 2030. However, with Europe’s green hydrogen capacity set to reach just 2.7 gigawatts by 2025, achieving such an ambitious goal will be a challenge. The ‘European Clean Hydrogen Alliance’ was launched to support investment and large-scale deployment of Green hydrogen projects as the EU aims to become the industrial leader in Green Hydrogen. Within the bloc, different member states look set to become large-scale hydrogen importers, exporters or transit hubs.
(c) Japan. In 2017, Japan became the first country to formulate a National Hydrogen Strategy in order to become the world’s first ‘hydrogen society’ by adopting the fuel across all sectors. The country lacks the natural resources needed to deploy sufficient levels of wind or solar to generate green hydrogen at scale, therefore developing long term supply agreements to import Green Hydrogen from overseas. Alongside government investment in hydrogen and fuel cell technologies totaling $670 million in 2020, policymakers have set mobility targets of 800,000 FCEVs and 900 hydrogen refueling stations by 2030.
(d) South Korea. South Korea’s 2019 Hydrogen roadmap hailed Green hydrogen as a key driver of economic growth and job creation. The nation has its sights set on becoming a global leader in producing and deploying FCEVs and large-scale stationary fuel cells for hydrogen power generation. Its ‘Green New Deal’ contains an ambitious target of deploying 200,000 FCEVs by 2025. Last year, South Korea passed the Economic Promotion and Safety Control of Hydrogen Act- the world’s first law aimed at promoting hydrogen vehicles, charging stations and fuel cells. Plans are in place for hydrogen to provide 10% of the energy needs of its cities, counties and towns by 2030, with its share rising to 30% by 2040 before it becomes the country’s largest single energy carrier by mid-century.
(e) The United States. The US is the world’s second largest producer and consumer of hydrogen after China, accounting for 13% of global demand. States such as California supported the country’s FCEV market growth for more than a decade with initiatives like the ‘Clean Vehicle Rebate Program’. The US led the world in this field until 2020. When the government passed law- ‘Infrastructure Investment and Jobs Act of 2021’. It contained a $9.5 billion budget to boost Green hydrogen development. This was followed by the launch of the government’s Hydrogen Earthshot program aimed at bringing down the cost of Green Hydrogen to $1 per 1 kilogram in 1 decade.
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Why Green Hydrogen in India’s Energy Porfolio?
Green hydrogen’s emergence as the fuel of the future for India is rooted in a multitude of reasons and compelling arguments that make it an indispensable component of the nation’s energy landscape as discussed hereinunder:-
(a) Abundant Renewable Resources. India is blessed with abundant solar and wind resources, making it well-suited for green hydrogen production. Harnessing these renewable energy sources through electrolysis allows India to produce hydrogen with minimal environmental impact, positioning the nation as a global leader in sustainable energy production.
(b) Decarbonisation Imperative. India, like the rest of the world, faces the pressing need to reduce carbon emissions to combat climate change. Green hydrogen provides a pathway to decarbonize various sectors.
(c) Energy Storage and Grid Balancing. Green hydrogen offers a unique solution to the intermittent nature of renewable energy sources. Excess electricity generated during peak periods can be used for electrolysis to produce hydrogen, which can then be stored and used during periods of high demand or low renewable energy generation. This enhances grid stability and energy security.
(d) Versatility and End-Use Flexibility. Green hydrogen is remarkably versatile. It can be used as a fuel for vehicles, as a feedstock in industrial processes, or to generate electricity through fuel cells. This versatility allows India to address multiple energy needs simultaneously, reducing reliance on imported fossil fuels in various sectors.
(e) Technological Advancements. Advancements in green hydrogen production technologies, including electrolysers and hydrogen storage solutions, have made the process more efficient and cost-effective. As technology continues to improve, the economic viability of green hydrogen becomes increasingly attractive.
(f) Economic Growth and Job Creation. Investing in the green hydrogen sector can stimulate economic growth and job creation. The development of a robust hydrogen ecosystem, from production to infrastructure deployment, will create a multitude of employment opportunities fostering economic prosperity.
(g) International Collaboration and Trade. Green hydrogen presents opportunities for international collaboration and trade. India can export green hydrogen and related technologies to other nations, enhancing its standing in the global energy market and fostering diplomatic ties.
Green Hydrogen’s Role in Achieving India’s Energy Goals
Green hydrogen, produced through the process of electrolysis using renewable energy sources like wind and solar power is hailed as the fuel of the future for several compelling reasons. Firstly, it is a clean and sustainable energy carrier, emitting only water vapours when burned or used in fuel cells, thus combating greenhouse gas emissions and addressing climate change. Secondly, it can be efficiently stored and transported, offering flexibility in energy distribution. Thirdly, it is incredibly versatile and can be used across various sectors, including transportation, industry and power generation. For India, it’s a strategic tool to achieve energy security, energy independence by 2047 and net-zero emissions by 2070.
(a) Energy Security. As India’s growth story unfolds, energy requirement is likely to grow by at least 25% by 2030. India is currently importing over 40% of its primary energy requirement, worth over USD 90 billion every year. This necessitates diversification of National energy portfolio towards green hydrogen technologies to progressively reduce share of imported fossil fuels. India, by harnessing abundant renewable energy resources can produce green hydrogen domestically, ensuring a stable and secure energy supply.
(b) Energy Independence by 2047. India’s aspiration to attain energy independence by its centenary in 2047, the 100th year of independence, is an ambitious yet achievable goal. Green hydrogen holds the key to this aspiration by offering a clean, indigenous energy source that can replace fossil fuels in various sectors. By investing in green hydrogen infrastructure and technology, India can reduce its reliance on imported fossil fuels and move closer to energy independence.
(c) Net Zero by 2070. India’s commitment to achieving net-zero emissions by 2070 is a testament to its dedication to combating climate change. Green hydrogen is a crucial enabler in this journey. When used as a clean fuel or feedstock, green hydrogen can significantly reduce greenhouse gas emissions across sectors, such as transportation, industry and power generation. Its carbon-neutral nature aligns perfectly with the goal of eliminating net emissions. Carbon-free steel, ammonia, fuel cell based power generation and hydrogen based transportation systems will assist in reduction of fossil fuel based carbon emissions.
Micro Grid Power Plants for Offgrid Forward Locations of Indian Army
MoU between Indian Army and National Thermal Power Corporation Renewable Energy Limited (NTPC REL). In consonance with the National Green hydrogen Mission, on 21 Mar 2023, Indian Army became first Government entity to ink an MoU with NTPC REL for installation of Green Hydrogen based Micro Grid Power Plants at off grid forward locations along Northern Borders. The plants will provide round the clock clean power supply to the troops deployed in inhospitable terrain, extreme climatic conditions higher Himalayas. The progressive step will reduce Indian Army’s dependence on power being generated by fossil fuel fired Generators.
Pilot Project at Chushul. The 200 KW pilot project at Chushul will be the first operational green hydrogen-based power plant in India. NTPC REL will develop the project on Build, Own and Operate (BOO) model, wherein investment, construction, operation and maintenance post commissioning will be the responsibility of NTPC REL and Indian Army will provide land on 25 on lease for 25 years and pay the tariff as per Power Purchase Agreement. NTPC REL has conceptualized and designed the pilot project and has completed the tendering formalities. Work on site is likely to commence by December 2023.
Design & Configuration. The plant has been designed on the basic concept of producing power by installing Solar Photovoltaic panels to capture solar energy and directly supply the same to consumer through a micro grid during solar hours. Also, a part of solar energy will be used to run electrolysers which will break water into hydrogen and oxygen and hydrogen will be compressed and stored in cylinders. The stored hydrogen will be used to run fuel cells which will provide power during non-solar hours. Besides, a four-hour battery backup will be provided though a Battery Energy storage system, which will also cater to intermittency and fluctuations in solar energy required to power electrlysers. The layout of the pilot project is given as under:-
(a) Solar Plant. The solar plant will comprise of a Solar PV modules for a DC capacity of 3200 kW. The power will be evacuated from Solar plant directly into local AC grid at 415 V during solar hours. The electrolysers and BESS would be fed by DC power from the solar plant through a unique system of DC-DC conversion to save on energy losses. Metering, protection and Energy Management System (EMS) will be installed for safe and smooth operations
(b) Hydrogen Plant. Hydrogen generation of 160 kg/day with 1000 kW of Proton Exchange Membrane (PEM) type electrolyser will be installed. Electrolysers are envisaged to interface directly with DC grid through DC/DC converter. Hydrogen compression system will be installed to the required pressure of 250 bar for storage. Hydrogen storage facility will have at least 200 kg of usable hydrogen required for fuel cell in a Type-IV hydrogen gas cylinders. Heat exchangers will be installed in closed loop system.
(c) Battery Energy Storage System (BESS). BESS for the capacity of 300KW/1200KWHr will be installed for storing of un-utilised/surplus power from solar plant by charging the battery system. Power to be extracted or discharged from the battery to existing load (200KW) at any time. BESS will support Hydrogen Plant and load during the fluctuation in solar plant due to weather conditions. BESS will cater to the power requirement of emergency load (max 80 kW) for one hour and lighting load for three hours of operation. It shall have battery and thermal management system for its effective operation. BESS is envisaged to interface directly with DC grid through DC/DC converter and also operate in standalone mode as well as in tandem operation with local grid comprising Solar PV & Fuel Cell. BESS discharging energy capacity at the end of 10 Years shall be 90% of rated energy capacity with 90% annual utilization factor.
(d) Fuel Cell System. Electrical power to be generated for Net capacity of 200 KW using a PEM type Fuel Cell. Fuel Cell will interface directly with DC grid through DC/DC converter. Fuel Cell shall operate in standalone mode as well as in tandem operation with local grid comprising Solar PV & BESS. Fuel Cell has been designed to operate based on the load condition and maintain the power quality in the system.
Challenges in Making India a Global Green Hydrogen Hub
While the future of green hydrogen is promising, India faces several challenges on its path to becoming a global green hydrogen hub. These challenges include the following:-
(a) High production costs.
(b) The need for significant infrastructure development for creation of hydrogen Eco-system.
(c) Intermittency issues with renewable energy sources.
(d) Need for indigenization and mass production of hydrogen technologies.
(e) Collaboration between public and private sectors along with incentive based supportive policies will be crucial in overcoming these challenges.
Conclusion
Green Hydrogen represents an extraordinary opportunity for India and the world to transition towards a sustainable, low-carbon future. With its clean and versatile nature, it has the potential to address climate change, enhance energy security and drive economic growth. Despite the existing challenges, the future of green hydrogen is filled with optimism, driven by innovation and a shared commitment to a greener and more sustainable world.
