Green Hydrogen: Powering India's Clean Energy Transition

As global energy demands soar, the need for sustainable solutions like Green Hydrogen, is rapidly becoming an imperative. Derek M Shah , Sr. Vice President & Head, L&T Energy - Green Mfg. & Development shares insights on the fast-evolving sector.

The global shift towards sustainable energy is crucial for mitigating climate change and securing a greener future. Key trends include moving away from fossil fuels—such as coal, oil, and natural gas—towards renewable sources like solar, wind, hydro, and geothermal energy. In this scenario, Green Hydrogen, produced through electrolysis using renewable energy, is fast emerging as a pivotal solution for decarbonising sectors like transportation, industry, and power generation. Its versatility makes it a key player in achieving a resilient and sustainable energy landscape.

As the world increasingly recognises the potential of Green Hydrogen, the global market is projected to reach $30.6 billion by 2030, growing at a remarkable Compound Annual Growth Rate (CAGR) of 61.1% (according to MarketsandMarkets). This meteoric rise is akin to witnessing a sapling transform into a towering tree in a remarkably short span.

Green Hydrogen has the potential to help achieve net-zero emissions systems by 2050 and restrict global warming by 1.5 degree C. Studies suggest that a complete switch to Green Hydrogen could potentially reduce CO2 emissions between 8-11% by 2050.

However, this path to energy transition is not without its challenges. At the heart of this transition lies a disruptive technology known as electrolysis, which is essential for producing Green Hydrogen.

In India, companies across various sectors are already making progress in the Green Hydrogen domain. All major Public Sector Refineries are planning to blend Green Hydrogen for their operations. Fertiliser companies are planning to replace imported ammonia with domestically produced Green Ammonia. Steel giants are exploring the use of Green Hydrogen in their steelmaking processes, aiming to reduce their carbon footprint and produce ‘green steel’. These companies are actively collaborating with electrolyser manufacturers and research institutions to develop and implement Green Hydrogen technologies. Commercial vehicle manufacturers are working on developing hydrogen-powered trucks, utilising PEM fuel cells. Players across maritime industries are planning to replace marine fuels with e-Methanol and Green Ammonia.

The Indian Government's National Green Hydrogen Mission with a $2.4 billion outlay supports this transition. The mission targets not only production but also demand creation. The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme offers financial incentives for the manufacturing of electrolysers and the production of Green Hydrogen and its derivatives. Additionally, the Government has announced plans to provide subsidies and tax breaks to industries adopting Green Hydrogen technologies.

L&T: A Green Hydrogen Leader

Larsen & Toubro (L&T) has taken a significant step forward in Green Hydrogen production by partnering with McPhy Energy, a leading European electrolyser technology company, to manufacture electrolysers in India, catering to the growing demand for Green Hydrogen plants. The state-of-the-art manufacturing facility, already operational, produces advanced pressurised alkaline electrolysers. These electrolysers will be made available for purchase by companies establishing Green Hydrogen production facilities, both within India and internationally.

In recognition of these efforts, L&T has been allocated a significant 300 MW/annum capacity under the Production Linked Incentive (PLI) of the National Green Hydrogen Mission, launched by Government of India. This allocation underscores L&T’s potential to emerge as a key player in electrolyser manufacturing. The company is at the forefront of efforts to indigenise the production of electrolysers, a crucial step in reducing the costs of Green Hydrogen production and enhancing India's #Atmanirbharta in this critical technology. By focusing on technological advancements in electrolyser design, materials, and manufacturing processes, L&T aims to drive continuous improvement and scale-up efficiency. L&T's Green Energy Business aligns with global decarbonisation initiatives and India's Green Hydrogen Mission. The business focusses on the entire green energy value stream, including Green Molecules and their derivatives (Hydrogen, Ammonia, Methanol, etc).

L&T offers comprehensive solutions for Green Hydrogen plants and its derivatives, going beyond just manufacturing electrolysers, to include a comprehensive Engineering, Procurement, and Construction (EPC) solution for Green Hydrogen plants.

L&T is also actively engaged in R&D to enhance electrolyser efficiency and explore next-generation hydrogen production technologies, consolidating our position as a complete Green Hydrogen solutions provider, and supporting the broader goal of making Green Hydrogen a viable and sustainable energy solution for various applications. L&T's commitment extends beyond simply building plants for the Green Industry. It is also strategically investing in building and operating its own Green Hydrogen production facilities. This allows it to leverage its competence and expertise in manufacturing & EPC to development, to capitalise in such Green Hydrogen plants for value creation & superior returns on investment.

The Green Hydrogen produced at these facilities will be supplied to meet the growing demand across various sectors both domestic & international.

Simultaneously, to address the global demand for green molecules, L&T is in process to establish large-scale Green Ammonia and Green Methanol plants along the east and west coasts of India, strategically located near major commercial ports. L&T has already secured substantial land parcels in these strategic locations and has completed comprehensive feasibility studies. The company is now progressing towards initiating the Front-End Engineering Design (FEED) for these projects. Furthermore, L&T is engaged in advanced discussions with various offtakers who are formulating plans to decarbonise industries through the importing Green Hydrogen and Green Ammonia. These initiatives underscore L&T's commitment to driving sustainable development and facilitating the global transition towards clean energy solutions.?

Conclusion

India's ambitious Green Hydrogen goals require strategic government interventions. A multi-pronged approach focusing on robust financial ecosystems, regulatory certainty, and technology adoption is necessary.

As the world grapples with the urgent need to decarbonise and mitigate the impact of climate change, Green Hydrogen emerges as a promising solution. The roadmap to harness this potential involves a seamless integration of strong government support, industry collaborations, and technological progress. By leveraging these opportunities and fostering collaboration, India can play a pivotal role in the Green Hydrogen revolution, paving the way for a sustainable future.