Decoding the Green Hydrogen Push

Green hydrogen, the buzz-worthy fuel of the moment, is gaining attention.

Hydrogen has the potential to be a major industrial fuel in the 21st century, similar to how coal and oil drove industry in previous centuries. Decarbonized hydrogen, produced through the process of splitting water into hydrogen and oxygen, offers a renewable source of electricity.

In India, a country facing energy shortages as it aims to grow its manufacturing capabilities and transition to greener energy, green hydrogen may play a crucial role. India is targeting carbon neutrality by 2070 and will need a mix of energy sources to achieve it. According to Niti Aayog, a $3.1 trillion economy requires 1,650 billion units of power, generated from nearly 400 GW of capacity. Currently, green electricity only accounts for 17% of this.

As the economy is expected to double in the next decade, energy consumption is projected to grow 5-10x. This will lead to a significant increase in energy imports, unless more green resources are harnessed. Green hydrogen not only provides an economically viable option, but also helps reduce carbon emissions, making it a potential game-changer in strengthening energy security and driving the energy transition.

India is working towards reducing its reliance on fossil fuels and increasing the use of green fuels. One advantage the country has is its low cost of green hydrogen production, which is expected to drop to about one-fourth of global levels, making it a potential low-cost producer in the world. The National Hydrogen Mission has proposed the construction of giga factories for the production of green hydrogen.

However, there are several important factors to remember:

1. The cost of electrolysis: Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolysis process. The cost of hydrogen production through electrolysis currently ranges from $4 to $10 per kg, depending on the technology used.
2. Water availability: Large-scale electrolysis requires a significant amount of water input; a 1 GW electrolyzer, for example, would consume about 3 million tonnes of water to produce 0.15 million tonnes of hydrogen. This could be a limitation for hydrogen manufacturing in regions with water shortages.
3. Combustibility: Hydrogen is highly flammable and requires proper handling. The higher energy content of hydrogen fuel cells poses risks as an auto fuel, and hydrogen stations will need to adapt to more stringent safety measures.

It's important to note that the transition to green hydrogen will take time, similar to how energy transitions have happened in the past. It took 60 years for coal to go from 5% of the world's energy supply to nearly 50%, and natural gas took 60 years to reach just 20%. India, however, has an opportunity to take the lead in green hydrogen production.