Green Hydrogen Initiatives of Indian Government: A Step Towards a Sustainable Future
Green hydrogen is emerging as one of the most promising options for sustainable energy solutions. India, as a developing country, has taken several initiatives to promote the use of green hydrogen as a sustainable energy option. In this article, we will explore India’s green hydrogen initiatives, with a focus on the proposal to produce green hydrogen for fertilizer production, its potential benefits, and the initial outlay for the mission.
About 5 MMT of grey hydrogen is consumed annually in India, with 99% of it used in petroleum refining and the manufacture of ammonia for fertilizers. In the production of ammonia, hydrogen is a key input used to produce urea and other fertilizers. In petroleum refining, hydrogen is mainly used for reducing the sulfur content of fuels and conversion of heavier feedstocks to more valuable products. In both sectors, grey hydrogen can be substituted with green hydrogen, reducing carbon footprint and dependence on imported fossil fuels.
India imports about 10 MMT of urea, 5 MMT of di-ammonium phosphate (DAP), and 3 MMT of ammonia every year. This translates into an annual import value of over USD 6 billion. With the expected reduction in the price of green hydrogen, there will be an economic rationale for producing these fertilizers domestically, using green hydrogen/green ammonia to substitute imports. Accordingly, the government of India has proposed to call for competitive bids for establishing fertilizer plants based on green hydrogen/green ammonia.
The promotion of green hydrogen in India has several potential benefits, both for the environment and the economy. Firstly, the use of green hydrogen can significantly reduce carbon emissions, which is crucial in the fight against climate change. With the expected production capacity of 5 MMT per annum, India’s green hydrogen initiatives could save up to 64% of the country’s carbon emissions by 2050. Secondly, the development of a green hydrogen ecosystem can create new opportunities for investment and employment in India. It is estimated that the implementation of the mission could generate over 4 million jobs by 2030.
The implementation of the green hydrogen mission is expected to create a large-scale ecosystem for green hydrogen production and use in the country. The initial outlay for the mission will be Rs. 19,744 crores, including an outlay of Rs. 17,490 crores for the Sustainable Hydrogen Use in Industry, Transport and Electricity Generation (SIGHT) program, Rs. 1,466 crores for pilot projects, Rs. 400 crores for research and development, and Rs. 388 crores towards other mission components. The Ministry of New and Renewable Energy (MNRE) will formulate schemes and guidelines for the implementation of the respective components.
India’s green hydrogen initiatives are a significant step towards a sustainable energy future. With the expected production capacity of 5 MMT per annum and an associated renewable energy capacity addition of about 125 GW, India has the potential to become a global leader in green hydrogen production. The promotion of green hydrogen in the fertilizer production sector could reduce the country’s dependence on imported fertilizers and create new opportunities for investment and employment. It is hoped that India’s green hydrogen initiatives will pave the way for a cleaner and more sustainable energy future.