What is green hydrogen?

Hydrogen is a key industrial fuel that has a variety of applications including the production of ammonia (a key fertilizer), steel, refineries, and electricity. However, all of the hydrogen manufactured now is the so-called "black or brown" hydrogen produced from coal. Grey hydrogen is produced from natural gas while ‘Blue’ hydrogen is from fossil fuel sources where the ensuring carbon emitted is captured via carbon-capture processes. Green hydrogen is when hydrogen is produced via electrolysis, the splitting of water into hydrogen and oxygen with electricity generated from renewable energy sources such as solar or wind. “This is the most environmentally sustainable way of producing hydrogen.

What is National Green Hydrogen Mission?

The intent of the mission is to incentivize the commercial production of green hydrogen and make India a net exporter of the fuel. The mission has laid out a target to develop the green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum. This is alongside adding renewable energy capacity of about 125 GW (gigawatt) in the country. This will entail the decarbonization of the industrial, mobility, and energy sectors; reducing dependence on imported fossil fuels and feedstock; developing indigenous manufacturing capabilities; creating employment opportunities; and developing new technologies such as efficient fuel cells.

By 2030, the Centre hopes its investments will bring in investments worth Rs. 8 trillion and create over six lakh jobs. Moreover, about 50 MMT per annum of CO₂ emissions are expected to be averted by 2030. As per its Nationally Determined Contribution (NDC) to meeting the goals of the Paris Agreement, India has committed to reducing emissions intensity of its GDP by 45% by 2030, from 2005 levels.

Several major industrial houses have announced plans to facilitate India’s adoption of green hydrogen. However, they are all premised on India being able to access a reliable stream of components, upgrading the manufacturing and skill levels of its small and medium manufacturing enterprises, and developing a transmission network that can supply the hydrogen produced from supply-spots to industrial centres across the country. Many advanced economies, which have also announced plans and policies to develop such an economy and given their advanced industrial infrastructure, can steal a march over India.

Green hydrogen development is still in the nascent stages globally and while India can take the lead in being a major producer, provided it develops the necessary infrastructure to execute all these intermediary steps.