International Cooperation on Green Hydrogen | 13 Sep 2024

Source: LM

Why in News?

Recently, the Prime Minister (PM) virtually addressed the second International Conference on Green Hydrogen 2024 (ICGH-2024) being held at Bharat Mandapam, New Delhi.

• The PM emphasised the need for international cooperation to scale up green hydrogen production, reduce costs, and promote research and development.

What are Key Highlights of ICGH-2024?

• Counting India’s Achievements: India is among the first G20 nations to fulfil its Paris commitments on green energy. India’s commitments were fulfilled  9 years ahead of the target of 2030.
  • India pledged to increase non-fossil energy capacity to 500 GW (gigawatts) and reduce the total projected carbon emissions by 1 billion tonnes by 2030.
  • Installed non-fossil fuel capacity in India increased by nearly 300% over the past decade.
• Emerging Importance of Green Hydrogen: Green Hydrogen is identified as a key component in the global energy landscape, with potential to decarbonise difficult-to-electrify sectors such as refineries, fertilisers, steel, and heavy-duty transportation.
  • It can also serve as a storage solution for surplus renewable energy.
• Investment in Research: The conference called for investments in cutting-edge research and development, partnerships between industry and academia and encouragement for start-ups and entrepreneurs of the Green Hydrogen.
  • PM urged the domain experts and the scientific community to lead the way in Green Hydrogen adoption.
• G20 Summit Insights: PM underlined the New Delhi G-20 Leaders’ declaration that adopted five high-level voluntary principles on Hydrogen that are helping in the creation of a unified roadmap.
• Critical Questions: PM asked about ways to improve electrolyser efficiency, use seawater and municipal wastewater for production, and explore Green Hydrogen's role in public transport, shipping, and waterways.

Why International Cooperation is Needed in Promotion of Green Hydrogen?

• High Production Costs: According to the International Energy Agency (IEA), the cost of producing green hydrogen can range from USD 3 to USD 8 per kilogram, significantly higher than grey hydrogen produced from fossil fuels.
• Technology and Infrastructure Investment: The cost of alkaline electrolysers has decreased by 40% between 2014 and 2019, but further cost reductions are needed to make green hydrogen competitive.
• Electrolysis Costs: Green hydrogen is produced through electrolysis, which requires substantial amounts of electricity. As of 2023, the production cost of green hydrogen remains high compared to conventional hydrogen.
• Efficiency of Electrolyzers: According to India's Ministry of New and Renewable Energy, current electrolyzers are not yet efficient enough for widespread adoption. Research and development are required to improve efficiency and reduce costs.
• Resource Availability: According to the European Commission, the availability of rare materials for electrolyser and fuel cells presents another challenge. 
  • The need for metals like platinum and iridium can constrain the scalability of green hydrogen technologies.
• Scaling Up Production: Scaling up production to meet global demands poses a significant challenge. 
  • The EU's Hydrogen Roadmap indicates that achieving the necessary scale for green hydrogen production requires coordinated efforts across industries and governments.

How can International Cooperation Help in Promotion of Green Hydrogen?

• Scaling Up Production: An estimate from a recent Hydrogen Council report suggests that Asia will require USD 90 billion investment in hydrogen projects by 2030.
  • According to the IEA, joint ventures and cross-border collaborations can significantly accelerate the scaling of green hydrogen production technologies by leveraging diverse technological capabilities and manufacturing resources.
• Economies of Scale: The European Commission highlights that joint international initiatives can drive down costs through shared investments and bulk purchasing of materials. 
  • For example, a group of 30 pioneering European energy companies officially launched “HyDeal Ambition” with the aim of delivering 100% green hydrogen across Europe at a low cost of Euro 1.5/kg.
• Shared Infrastructure: Shared infrastructure for green hydrogen production, storage, and distribution can lower investment costs and make the technology more economically viable.
  • Collaborative infrastructure projects, like the Asia-Pacific Hydrogen Association's regional networks, illustrate how shared facilities can decrease costs.
• Innovation Through Partnerships: Global partnerships drive innovation by bringing together diverse research perspectives and funding sources. 
  • E.g., the Global Hydrogen Coalition is a prominent example of a platform that brings together governments, industry leaders, and research institutions to drive innovation in hydrogen technologies.
• Unified Policies and Regulations: International collaboration helps in developing cohesive policies and regulations that support green hydrogen development. 
  • The 2023 G20 Summit, under India's presidency, adopted voluntary principles for green hydrogen which would help in creating a common roadmap.
• Investment and Funding: Joint funding initiatives and investment from international sources can accelerate research and deployment.
  • E.g., Several research and innovation projects on hydrogen are ongoing within Horizon Europe, the EU’s Framework Programme for Research and Innovation.
    • These projects are managed through the Clean Hydrogen Partnership (2021-2027), a joint public-private partnership supported by the European Commission.

Conclusion

International cooperation is essential for advancing green hydrogen. By sharing technology, harmonising policies, and pooling investments, nations can overcome production and infrastructure challenges. Collaborative efforts ensure efficient global supply chains, reduce costs, and foster public acceptance. Unified global action accelerates the transition to a sustainable energy future and maximises green hydrogen's potential.