New Delhi, Aug 18 (The South India Times): Green Hydrogen has become an integral part of India’s economic development and net-zero plans. Hydrogen will act as a critical enabler to achieving the global targets to limit the increase in temperature to 1.5 degrees Celsius, adapt to adverse impacts of climate change, and foster low greenhouse gas emissions development.
A NITI Aayog report suggests, that it can help abate 3.6 gigatons of cumulative CO2 emissions by 2050, which may prove to be a boon for the country if it succeeds in its endeavors. European countries are seeking to collaborate with India on Green Hydrogen projects. Explaining why India is betting big on hydrogen, an EY report stated the global pandemic has taught nations to diversify their energy demand as well as their geographical availability. The fluctuations in the oil & gas market have disrupted the supply-demand chain and caused variations in fuel costs. Developing countries like India needs to find out an alternative to strengthen their national energy security. India is the third largest global CO2 emitter (7 percent of global CO2 emission) well below China and the US. It has also committed to reducing its emissions intensity by 33-35 percent under the Paris Agreement.
According to the EY report, India is the world’s third-largest crude oil importer with an import dependency of more than 80 percent. It also imports 54 percent of natural gas and 24 percent of coal requirements, which largely affects India’s financial account balance. India’s oil import bill in FY20 and FY19 was around $101.4 billion and $111.9 billion, respectively. A number of sectors like iron ore and steel, fertilizers, refinery, methanol, heavy-duty trucking, aviation, and maritime shipping emit large amounts of carbon dioxide.
According to the NITI Aayog report, if these sectors are helped with carbon-free hydrogen or green hydrogen, the country will be able to keep decarbonizing itself, which may help the country transition to clean energy and meet the net-zero targets by 2070.
The report suggests, that India has its distinct advantage in low-cost renewable energy generation, which makes green hydrogen the most competitive form of hydrogen in the long run and cost parity with natural gas-based hydrogen or grey hydrogen could also be achieved by 2030.
NITI Aayog says with emerging global momentum on hydrogen, India can situate this decarbonization opportunity not just within the context of a low-carbon economy, but also as an enabler of energy security and economic development for the nation.
Green hydrogen can potentially provide a replacement for fossil fuels in industrial processes and the next steps at the policy level could involve arriving at the correct mix between mandates/regulations and price instruments.
The EY report stated India aims for 100 million tonnes of coal gasification by 2030. Therefore, India has an opportunity to support blue hydrogen using carbon capture, utilization, and storage technology. A minimum subsidy can also be allocated for the same and this will create enough hydrogen demand and infrastructure for green hydrogen to enter the market. Eventually, green hydrogen will become prevalent and utilize existing storage, transmission, and distribution infrastructure.
