The World Economic Forum (WEF) has emphasized that green hydrogen has the potential to not only fulfill the energy needs of key sectors in India, such as fertilizers, chemicals, refining, and iron, but also contribute to carbon emissions reduction compared to conventional fossil fuels.
In a comprehensive analysis of the factors crucial for establishing green hydrogen as a viable energy pathway in India, the report asserted that green hydrogen can play a pivotal role in supporting India’s transition to a net-zero economy by 2070 while meeting its escalating energy requirements.
Green hydrogen, generated through the electrolysis of water and powered by renewable energy sources, is acknowledged as a clean, adaptable, and versatile energy carrier. It has the potential to address the challenges posed by the intersection of energy supply and climate change.
India, currently the world’s third-largest economy in terms of energy needs, is projected to witness a 35% growth in energy demand by 2030. In 2022, India’s energy import expenses stood at $185 billion, a figure that is anticipated to rise if traditional energy methods continue to meet the escalating demand.
The report underscored the significance of green hydrogen in aligning with India’s commitment to achieve net-zero emissions by 2070, as declared at the United Nations Climate Change Conference in Glasgow (COP26) in 2021. As reported by PYNR, the National Green Hydrogen Mission, initiated by the Indian government in early 2022, aims to stimulate green hydrogen production and consumption through incentive funding totaling approximately USD 2.3 billion distributed between 2022 and 2030.
Currently, India produces 6.5 million metric tons per annum (MMTPA) of hydrogen, primarily for utilization in crude oil refineries and fertilizer production. The majority of the current hydrogen supply in the country is categorized as grey hydrogen, produced using fossil fuels and contributing to CO2 emissions.
The National Green Hydrogen Mission has set an ambitious target of producing 5 MMTPA of green hydrogen by 2030, equivalent to approximately half of India’s projected overall hydrogen demand of 11 MMTPA at that time. Crucially, the production of green hydrogen necessitates a substantial supply of renewable energy to facilitate the electrolysis process.
