Five reasons, Why India should focus on green Hydrogen production?
Five Reasons Why India Should Focus on Green Hydrogen Production
Green hydrogen, which is produced through the electrolysis of water using renewable energy sources, is increasingly being recognized as a critical component of the global energy transition towards a low-carbon economy. With its ample renewable potential, India has a unique opportunity to become a leader in green hydrogen production. In this article, we will explore five reasons why India should focus on green hydrogen production.
- Energy Security
India, as a rapidly growing economy, is heavily reliant on imports of fossil fuels. The country is the third-largest importer of crude oil and the fourth-largest importer of liquefied natural gas (LNG) in the world. This dependence on imports not only poses a risk to energy security but also leaves the country vulnerable to price volatility. By producing green hydrogen domestically, India can reduce its dependence on imports and achieve energy security.
- Economic Development
Green hydrogen production has the potential to create jobs and spur economic growth. The manufacture of electrolysers and fuel cells, which are critical components of the green hydrogen production process, can create new opportunities in manufacturing and R&D. Additionally, the production of green hydrogen can enable the emergence of new industries such as green ammonia and green steel, which can be exported globally.
- Environmental Sustainability
Green hydrogen is a zero-emission fuel and can play a critical role in reducing greenhouse gas emissions. In addition to being used in transportation, green hydrogen can also be used as a feedstock in industrial processes such as steel and cement production, which are otherwise difficult to decarbonize. By transitioning to green hydrogen, India can reduce its carbon footprint and contribute to global efforts to combat climate change.
- Technology Leadership
The global hydrogen market is expected to grow exponentially in the coming years, and green hydrogen is likely to play a significant role in this growth. India has a unique opportunity to become a leader in green hydrogen production by investing in research and development and scaling up the manufacturing of electrolysers and fuel cells. By doing so, India can not only achieve technical capability but also participate in an emerging global market and capture more of the economic gains of this transition.
- Energy and Commodities Trade
A domestic energy carrier that is price competitive globally can also mean a unique opportunity to participate in an energy and commodities trade. As the demand for green hydrogen and hydrogen-embedded low-carbon commodities like green ammonia and green steel is expected to grow, India can shape up its industries around exports of green hydrogen and these commodities, thereby becoming a key player in the global energy transition.
In conclusion, India has a unique opportunity to become a leader in green hydrogen production, which can provide significant benefits such as energy security, economic development, environmental sustainability, technology leadership, and participation in the energy and commodities trade. To realize this potential, it is essential that India invests in research and development, scales up manufacturing, and implements supportive policies and regulations to enable the development of a sustainable hydrogen economy.