Green Hydrogen | 01 Jul 2021
Why in News
According to the International Renewable Energy Agency (IRENA), hydrogen will make up 12% of the energy mix by 2050.
- The agency also suggested that about 66% of this hydrogen used must come from water instead of natural gas.
- Recently, IRENA has released the 'World Energy Transitions Outlook' Report.
Hydrogen
- Hydrogen is one of the most abundant elements on earth for a cleaner alternative fuel option.
- Type of hydrogen depend up on the process of its formation:
- Green hydrogen is produced by electrolysis of water using renewable energy (like Solar, Wind) and has a lower carbon footprint.
- Electricity splits water into hydrogen and oxygen.
- By Products : Water, Water Vapor.
- Brown hydrogen is produced using coal where the emissions are released to the air.
- Grey hydrogen is produced from natural gas where the associated emissions are released to the air.
- Blue hydrogen is produced from natural gas, where the emissions are captured using carbon capture and storage.
- Green hydrogen is produced by electrolysis of water using renewable energy (like Solar, Wind) and has a lower carbon footprint.
- Uses:
- Hydrogen is an energy carrier, not an energy source and can deliver or store a tremendous amount of energy.
- It can be used in fuel cells to generate electricity, or power and heat.
- Today, hydrogen is most commonly used in petroleum refining and fertilizer production, while transportation and utilities are emerging markets.
- Hydrogen and fuel cells can provide energy for use in diverse applications, including distributed or combined-heat-and-power; backup power; systems for storing and enabling renewable energy; portable power etc.
- Due to their high efficiency and zero-or near zero-emissions operation, hydrogen and fuel cells have the potential to reduce greenhouse gas emission in many applications.
Key Points
- Current Status Worldwide:
- Less than 1% of hydrogen produced is green hydrogen.
- Manufacturing and deployment of electrolysers will have to increase at an unprecedented rate by 2050 from the current capacity of 0.3 gigawatts to almost 5,000 gigawatts.
- Indian Scenario:
- Consumption of Hydrogen: India consumes about six million tonnes of hydrogen every year for the production of ammonia and methanol in industrial sectors, including fertilisers and refineries.
- This could increase to 28 million tonnes by 2050, principally due to the rising demand from the industry, but also due to the expansion of transport and power sectors.
- Cost of Green Hydrogen: By 2030, the cost of green hydrogen is expected to compete with that of hydrocarbon fuels (coal, Crude Oil, natural gas).
- The price will decrease further as production and sales increase. It is also projected that India's hydrogen demand will increase five-fold by 2050, with 80% of it being green.
- Exporter of Green Hydrogen: India will become a net exporter of green hydrogen by 2030 due to its cheap renewable energy tariffs.
- Consumption of Hydrogen: India consumes about six million tonnes of hydrogen every year for the production of ammonia and methanol in industrial sectors, including fertilisers and refineries.
- Benefits of Using Green Hydrogen for India:
- Green hydrogen can drive India’s transition to clean energy, combat climate change.
- Under the Paris Climate Agreement, India pledged to reduce the emission intensity of its economy by 33-35% from 2005 levels by 2030.
- It will reduce import dependency on fossil fuels.
- The localisation of electrolyser production and the development of green hydrogen projects can create a new green technologies market in India worth $18-20 billion and thousands of jobs.
- Green hydrogen can drive India’s transition to clean energy, combat climate change.
- Potential:
- India has a favourable geographic location and abundance of sunlight and wind for the production of green hydrogen.
- Green hydrogen technologies are being promoted in sectors where direct electrification isn't feasible.
- Heavy duty, long-range transport, some industrial sectors and long-term storage in the power sector are some of these sectors.
- The Ministry of New and Renewable Energy (MNRE) has circulated a draft cabinet note to establish a hydrogen ecosystem in the country.
- The nascent stage of this industry allows for the creation of regional hubs that export high-value green products and engineering, procurement and construction services.
- Challenges:
- Economic Sustainability: One of the biggest challenges faced by the industry for using hydrogen commercially is the economic sustainability of extracting green hydrogen.
- For transportation fuel cells, hydrogen must be cost-competitive with conventional fuels and technologies on a per-mile basis.
- High Costs and Lack of Supporting Infrastructure:
- Fuel cells which convert hydrogen fuel to usable energy for cars, are still expensive.
- The hydrogen station infrastructure needed to refuel hydrogen fuel cell cars is still widely underdeveloped.
- Economic Sustainability: One of the biggest challenges faced by the industry for using hydrogen commercially is the economic sustainability of extracting green hydrogen.
- Step Taken:
- The Union Budget for 2021-22 has announced a National Hydrogen Energy Mission (NHM) that will draw up a road map for using hydrogen as an energy source.
- Indian Initiatives for Renewable Energy:
Way Forward
- Set a national target for green hydrogen and electrolyser capacity: A phased manufacturing programme should be used to build a vibrant hydrogen products export industry in India such as green steel (commercial hydrogen steel plant).
- Implement complementary solutions that create virtuous cycles: For example hydrogen infrastructure can be set up for refueling, heating and generating electricity at airports.
- Decentralised Production: Decentralised hydrogen production must be promoted through open access of renewable power to an electrolyser (which splits water to form H2 and O2 using electricity).
- Providing Finance: Policymakers must facilitate investments in early-stage piloting and the research and development needed to advance the technology for use in India.