Energy independence through hydrogen
Hydrogen plays a major role in the decarbonization of India’s transport sector. Hydrogen, a new age fuel, is touted as India’s gateway to energy independence. Hydrogen has a multifaceted role in the energy landscape of the future, whether it is energy storage, long-distance transportation, or the decarbonization of the industrial sector.
India’s per capita energy consumption is about one-third of the global average and one-twelfth that of the USA.
India’s per capita energy consumption is about one-third of the global average and one-twelfth that of the USA.
Green Hydrogen Policy-
• Green hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity.
• It was issued on February 17, 2022, addressed several key challenges like Open access, Waiver of inter-state transmission charges, Banking, and Time-bound approvals and is expected to boost India‘s energy transition.
Hydrogen-A game changer
The two major fuels are hydrogen and electricity. Although both are energy carriers, hydrogen can be stored on larger scales and for longer periods. This clearly says to be a great balance for the growing supply of convertible renewable energy.
The advantages of fuel cell vehicles over battery electric vehicles are-
1. Faster refuelling
2. Longer driving range
3. Long-distance transportation
In the industrial segment, hydrogen can de-carbonize ‘hard-to-abate’ areas like iron and steel, aluminium, and copper etc., It has great potential to produce fuels such as methanol, synthetic kerosene, green ammonia etc.,
• India’s hydrogen consumption stood at around 7 million tonnes in 2020 and may increase to 28 million tonnes in 2050, according to The Energy and Resources Institute(TERI).
• Assuming 25% export capacity, the requirement may reach 35 million by 2050.
• India may need an electrolyzer capacity of 640 to 750 times the current global capacity by 2050.
• This would lead to a rapid increase in electricity demand to around 1,500 to 1,800 TWH, meaning only for hydrogen production. India will need 110-130% of its current total electricity generation by 2050.
• Green hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity.
• It was issued on February 17, 2022, addressed several key challenges like Open access, Waiver of inter-state transmission charges, Banking, and Time-bound approvals and is expected to boost India‘s energy transition.
Hydrogen-A game changer
The two major fuels are hydrogen and electricity. Although both are energy carriers, hydrogen can be stored on larger scales and for longer periods. This clearly says to be a great balance for the growing supply of convertible renewable energy.
The advantages of fuel cell vehicles over battery electric vehicles are-
1. Faster refuelling
2. Longer driving range
3. Long-distance transportation
In the industrial segment, hydrogen can de-carbonize ‘hard-to-abate’ areas like iron and steel, aluminium, and copper etc., It has great potential to produce fuels such as methanol, synthetic kerosene, green ammonia etc.,
• India’s hydrogen consumption stood at around 7 million tonnes in 2020 and may increase to 28 million tonnes in 2050, according to The Energy and Resources Institute(TERI).
• Assuming 25% export capacity, the requirement may reach 35 million by 2050.
• India may need an electrolyzer capacity of 640 to 750 times the current global capacity by 2050.
• This would lead to a rapid increase in electricity demand to around 1,500 to 1,800 TWH, meaning only for hydrogen production. India will need 110-130% of its current total electricity generation by 2050.
LIMITATIONS-
• In addition to the ever-increasing demand for electricity, the high cost of hydrogen manufacturing and water scarcity may also pose a challenge.
• About 9 litres of water is required to produce 1kg of hydrogen by electrolysis.
• Hydrogen projects should be targeted in water-rich areas.
• Consumers want low costs that may be possible with scalability and large investments, but producers want assured demand from them.
FIVE-STEP STRATEGY-
IN TERMS OF DEMAND
• Firstly a mantle should be given to the industries like refining and fertilizers, with adequate incentives, to generate initial demand.
• Second, industries manufacturing low-emission hydrogen-based products are to be encouraged by the government.
• Third, blending hydrogen with natural gas could serve as a big booster shot, which could be facilitated by framing blending mandates, and regulations, and promoting H-CNG stations.
• In addition to promoting FCEVs, hydrogen fueling stations may be planned on dedicated corridors where long-distance trucking is widespread.
• Finally, the concept of carbon tariffs needs to be introduced.
IN TERMS OF SUPPLY-
• Investment in R & D must be accelerated so that its cost can be at par with fossils.
• The Sustainable Alternative Towards Affordable Transportation (SATAT) scheme aims to produce 15 MMT of compressed biogas, which can be achieved by exploring biogas conversion to hydrogen.
• A Viability Gap Funding(VGF) scheme may be introduced for hydrogen-based projects for the commercialization and enhancement of emerging technologies.
• To secure affordable financing, electrolyzer manufacturing and hydrogen projects need to be brought under Priority sector Lending(PSL).
• Since the two major factors for green hydrogen are renewable energy tariffs and electrolyzer costs, and India has the advantage of one of the lowest renewable tariffs; the emphasis should be on reducing the cost of electrolyzer by implementing the Production Linked Incentive(PLI) scheme.
• This can help India become a global hub for electrolyzer manufacturing and green hydrogen.
• Investment in R & D must be accelerated so that its cost can be at par with fossils.
• The Sustainable Alternative Towards Affordable Transportation (SATAT) scheme aims to produce 15 MMT of compressed biogas, which can be achieved by exploring biogas conversion to hydrogen.
• A Viability Gap Funding(VGF) scheme may be introduced for hydrogen-based projects for the commercialization and enhancement of emerging technologies.
• To secure affordable financing, electrolyzer manufacturing and hydrogen projects need to be brought under Priority sector Lending(PSL).
• Since the two major factors for green hydrogen are renewable energy tariffs and electrolyzer costs, and India has the advantage of one of the lowest renewable tariffs; the emphasis should be on reducing the cost of electrolyzer by implementing the Production Linked Incentive(PLI) scheme.
• This can help India become a global hub for electrolyzer manufacturing and green hydrogen.
On the transportation front, ammonia with energy density could be promoted as a means of transportation. A hydrogen transportation system could be built on a foundation for natural gas using its existing infrastructure.
Hydrogen could completely transform India‘s energy ecosystem by shifting its trajectory from an energy importer to an exporter.
With hydrogen, India could lead the world in achieving the Paris Agreement goal of limiting global warming to 2 C compared to pre-industrial levels.
Hydrogen could completely transform India‘s energy ecosystem by shifting its trajectory from an energy importer to an exporter.
With hydrogen, India could lead the world in achieving the Paris Agreement goal of limiting global warming to 2 C compared to pre-industrial levels.
