Industrial sectors suitable for early adoption of green Hydrogen
India is embarking on a journey to adopt green hydrogen as a means of decarbonizing its economy. Green hydrogen is produced through the electrolysis of water, powered by renewable energy sources, and emits no carbon dioxide. It is considered a clean fuel and has the potential to replace fossil fuels in various industries.
According to industry experts, the early adoption of green hydrogen will take place across the fertilizer, refining, ammonia, marine, and steel industries in India. These industries have high carbon emissions and require large amounts of energy to operate. The adoption of green hydrogen will help these industries reduce their carbon footprint and make them more sustainable.
One of the industries that will benefit greatly from the adoption of green hydrogen is the fertilizer industry. Fertilizer production is a highly energy-intensive process that relies on natural gas. The production of green hydrogen using renewable energy sources can reduce the carbon emissions from the fertilizer industry significantly.
The refining industry is another sector that can benefit from the adoption of green hydrogen. Refineries consume a significant amount of energy, and the production of green hydrogen can help reduce their carbon footprint. The use of green hydrogen in refining processes can also improve the efficiency of the processes and reduce costs.
The ammonia industry is also a potential user of green hydrogen. Ammonia is an important industrial chemical that is used to produce fertilizers, polymers, and other products. The production of green ammonia using green hydrogen can help reduce the carbon footprint of the ammonia industry.
The marine industry is also a promising sector for the adoption of green hydrogen. Shipping is a significant contributor to global carbon emissions, and the use of green hydrogen as a fuel can help reduce emissions significantly. The development of green hydrogen-powered ships can transform the marine industry and make it more sustainable.
Finally, the steel industry is a significant user of fossil fuels and a major contributor to carbon emissions. The production of green hydrogen can help reduce the carbon footprint of the steel industry significantly. The use of green hydrogen in the production of steel can also improve the efficiency of the processes and reduce costs.
To achieve the adoption of green hydrogen in these industries, India will require an electrolyser capacity of approximately 21 GW to meet the targeted demand of 4 million tons of green hydrogen by 2030. This demand will be fueled by approximately 80 GW of renewable energy sources, backed by 4-5 hour battery energy storage systems. The total capital expenditure required to achieve this target between 2022 and 2030 is estimated to be INR 4.8 trillion.
The early adoption of green hydrogen in India can take place in various industries, including fertilizers, refining, ammonia, marine, and steel. Green hydrogen has the potential to transform these industries and make them more sustainable. The adoption of green hydrogen will require significant investments in renewable energy and electrolysis capacity. However, it is a step in the right direction towards achieving a carbon-free future.
| Industry Type | Application | Expected Results |
|---|---|---|
| Fertilizer | Production of ammonia using green hydrogen | Reduction in greenhouse gas emissions and sustainable production of fertilizers |
| Refining | Hydrocracking and hydrotreating processes using green hydrogen | Reduction in greenhouse gas emissions and lower operating costs due to lower energy consumption |
| Ammonia | Production of green ammonia using green hydrogen | Reduction in greenhouse gas emissions and sustainable production of ammonia |
| Marine | Powering ships using fuel cells that run on green hydrogen | Reduction in greenhouse gas emissions and sustainable transportation |
| Steel | Production of steel using green hydrogen instead of coking coal | Reduction in greenhouse gas emissions and sustainable production of steel |
Early adoption of green hydrogen is expected to take place in the fertilizer, refining, ammonia, marine, and steel industries in India. In the fertilizer industry, green hydrogen will be used to produce ammonia. In the refining industry, green hydrogen will be used in hydrocracking and hydrotreating processes. The ammonia industry will use green hydrogen to produce green ammonia. The marine industry will use fuel cells that run on green hydrogen to power ships. The steel industry will use green hydrogen instead of coking coal in steel production.
The adoption of green hydrogen in these industries is expected to result in a reduction in greenhouse gas emissions and sustainable production processes. India will require an electrolyser capacity of ~21GW to meet ~4 MT of targeted green hydrogen demand by FY30, which will be fueled by ~80GW of renewable energy capacity, with 4-5 hour battery energy storage systems. It entails a Capex of INR4.8trn between FY22 and FY30.