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.
• 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.
• 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.
• 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.
• 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:
    
    • Jawaharlal Nehru National Solar Mission (JNNSM).
    • International Solar Alliance.
    • PM- KUSUM.
    • National Wind-Solar Hybrid Policy.
    • Rooftop Solar Scheme.

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.

Source: DTE