Green Hydrogen is the newest member added to the list of clean fuels. It is produced by using renewable energy as a resource using the process of electrolysis. For this process of electrolysis, water is used as a primary element. Its further subjected to electric current obtained from a renewable energy source and then broken down into Oxygen and Hydrogen gas. The Hydrogen thus obtained emits no harmful gases or pollutants and is a 100% sustainable source of energy.
Green Hydrogen has a brilliant potential as a fossil fuel. Its the purest and most eco-friendly form of hydrogen. It doesn’t release any harmful gases into the environment.
The electrical source’s carbon neutrality determines the carbon intensity of green hydrogen. The hydrogen produced is “greener” the higher the percentage of renewable energy in the power fuel mix.
The environmental and energy think tank Climate Risk Horizons (CRH) released a report stating that if adequate checks and balances are not in place, India’s plans to produce so-called “green hydrogen” – gas produced without resulting in emissions from fossil fuels – It may end up making pollution worse.
The Ministry of New and Renewable Energy (MNRE) presents it as hydrogen produced with emissions of no more than two kilos of carbon dioxide per kilogram of hydrogen.
This idea is thought to be rather imprecise and open to interpretation, which could lead to variations in the emissions produced by various green hydrogen generation technology.
Why Green Hydrogen?
- It is believed to be a better replacement for fossil fuels.
- It can be easily transformed into green ammonia.
- It can be used for agriculture, fertilizer productions, and refineries.
- Shifting the grey hydrogen to green will be highly effective in bringing down the emissions levels of carbon.
- It is produced by the subsequent procedures of electrolysis of water and using renewable energy, producing hydrogen and oxygen. The hydrogen is consumed and oxygen is released into the atmosphere.
- Its the purest and most eco-friendly hydrogen.
- It doesn’t release any harmful gases into the environment.
- The electrical source’s carbon neutrality determines the carbon intensity of green hydrogen.
- The hydrogen produced is as “greener” as higher the percentage of renewable energy in the power fuel mix.
Challenges for Green Hydrogen in India
The Ministry of New and Renewable Energy (MNRE) is leading India’s National Green Hydrogen Mission, which aims to produce five million tonnes by 2030. To achieve this, 125 GW (one gigawatt is 1,000 megawatts) of renewable energy would need to be installed, and 250,000 gigawatt-hours of power, roughly 13% of India’s current electrical generation, would need to be used.
Green hydrogen is produced using electrolysis, which need a clean, constant power source.
According to the report, there is concern that using India’s coal-powered infrastructure to supply electricity for green hydrogen generation could result in higher carbon emissions, especially at night when solar power isn’t available.
In India, coal accounts for over 70% of the total electricity generated on the grid; this percentage rises during the night when solar power is scarce.
The National Green Hydrogen Mission of India hopes to produce five million tons of green hydrogen by 2030.
To do this, a large increase in the capacity of renewable energy sources is needed. The CRH study does note that India’s present installation of new solar and wind power plants falls short of the yearly benchmarks needed to meet the 2030 targets.
India’s overall renewable energy (RE) capacity as of August 2023 was 131 GW (not including hydropower dams larger than 25 MW); the 2030 green hydrogen plan therefore plans to create an equivalent RE capacity by 2030.
This is in addition to the 500 GW of renewable energy capacity that India has pledged to install by 2030 as part of the Paris Agreement’s Nationally Determined Contribution.
In comparison to the 45 GW annually required to meet the 2030 plan, India constructed only 15 GW of new solar and wind capacity in 2023.
Since electrolysis, which split water to make hydrogen and oxygen, run continuously, it is reasonable to assume that they will continue to function even at night when solar power is not available. The next step would be to connect to traditional coal-fired electricity.
According to the study, another issue is that burning biomass produces carbon emissions, which is why using it to produce green hydrogen is permitted under Indian guidelines. Furthermore, if limited renewable energy capacity is shifted to this production, consumers may not receive enough clean electricity.
There is no certainty under the Central Pollution Control Board Directions in order of the categorization of the industry into red, orange, green and white category. it could be a hustle if such approvals aren’t taken care of.
Hydrogen is categorized as a hazardous substance and listed as ‘Red’ category under CPCB Directions.
There is quite a chance that a goods and service tax of about 12% will be attracted by users, with no clarity on the taxability.
Approach
A number of significant Indian power companies, such as the National Thermal Power Corporation, the Adani Group, and , have made bold announcements about expanding the generation of green hydrogen. The sector will be developed and expanded with over ₹20,000 crore committed by the Center through its green hydrogen program.
“A certain amount of haircut to this estimate is probably necessary given the large scale of renewable energy (125GW) and electrolyzer capacity (60GW) required,” stated the Emkay Global Financial report.
By 2030, a 50% decrease to $2–2.5/kg is feasible based on learning-curve rates observed in solar and wind power.
Emkay outlined the present developments in renewable energy, stating that “LCOH can fall to approximately $2.3/kg by 2030 with a 5% learning-curve rate in RTC RE cost to Rs. 3/kwh, 40% decline in electrolyzer cost, and 15% improvement in its efficiency.”
Emkay cited recent measures to highlight the efforts of the GoI, stating, “Green H2 policies have gathered pace, with the Union Cabinet approving the National Mission in Jan-2023 and a Budget outlay of Rs. 197.4 billion.”
The paper highlighted the investment potential that have emerged from this ecosystem, highlighting companies such as Tata Power, NTPC, RIL, and Adani Enterprises. According to Emkay, “RIL could produce 2.5 GW of electrolyzers and about 1 mmtpa of green H2 by CY30, logging a PAT at Rs 11 billion pa.” Emkay upgraded RIL to a “BUY” rating with a revised target price of Rs 2,730/share for Sep-25E.
In order to consistently reduce emissions, the study highlights the need for a more precise and well-defined definition of green hydrogen. It calls into question the source of electricity and how it can impact carbon emissions, especially at night.
The study emphasizes the difficulties in boosting renewable energy capacity to facilitate the production of green hydrogen and the significance of openness and disclosure in projects to ensure that India’s goals for green hydrogen are environmentally sound.
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