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These issues have been highlighted by officials, especially at major energy public sector undertakings (PSUs), for the slow pace of green hydrogen adoption in the country | Photo: Bloomberg
India’s ambitious green hydrogen production target remains subject to various demand and supply-side constraints, the Economic Survey 2023-24 released on Monday said.
While India’s Green Hydrogen Mission targets five million metric tonnes of green hydrogen by 2030, the survey points out that this target is subject to factors such as the cost of production and delivery on the supply side, and the readiness to consume green hydrogen in traditional industrial processes on the demand side.
It also stresses that production costs remain high, especially regarding electrolysers and renewable energy used as inputs. The cost of capital, water supply and treatment, storage and distribution, conversion of hydrogen to suitable derivatives, and enabling infrastructure also contribute to the final delivered cost of green hydrogen for any particular application.
These issues have been highlighted by officials, especially at major energy public sector undertakings (PSUs), for the slow pace of green hydrogen adoption in the country despite a push from the top echelons of government.
A few small pilot projects for green hydrogen are already operational in parts of the country. Gail has commissioned a 4.3 tonnes per day (TPD) green hydrogen plant in Vijaipur, Madhya Pradesh, while Oil India Limited (OIL) commissioned India’s first 99.99 per cent pure green hydrogen plant, with an installed capacity of 10 kg per day, at its Jorhat Pump Station in Assam in 2022.
“As green hydrogen is produced using renewable energy, the sector inherits all the limitations of the renewable sector, including the issue of intermittency and the huge requirement of land for solar and wind energy generation,” the survey noted.
The government has also awarded tenders for selecting green hydrogen producers and electrolyser manufacturers under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme for a total capacity of 4,12,000 tonnes.
Diversified energy mix
However, the survey continues to advocate for the need to have a diversified mix of energy sources, including renewables (solar, wind, large and small hydro), green hydrogen, nuclear, and biofuels. “Such diversification will help minimise risks associated with energy systems while pursuing low-emission pathways in line with national commitments. The diversification also includes a significant role for thermal power in providing the base load to support large-scale deployment of renewables,” it said.
The survey also stated that given the close linkage between energy consumption and various social indicators, the government prioritises ensuring access to sustainable and clean energy sources. However, it also noted that non-fossil fuel sources are critical to India’s ambitious nationally determined contributions and net zero commitments under its climate change goals.
Many technologies required for global net zero are currently commercially unavailable, it said. These include hydrogen-fuelled steel and cement production, and steel and aluminium production with Carbon Capture Utilization and Storage technology.
“There is a need to enhance international cooperation in research and development (R&D), especially in the domains of distributed renewable energy spanning offshore wind, geothermal, tidal energy, biofuels, compressed biogas, green hydrogen, energy storage, electrolysers, and nuclear power including small modular reactors,” the survey said.
First Published: Jul 22 2024 | 2:34 PM IS