India has set an ambitious plan to acquire a share of up to 10% of the global hydrogen market in the coming years, taking advantage of the huge potential of its renewable energy sources.
Plans come in field sustainable energyas part of New Delhi’s efforts to achieve carbon neutrality by 2070, as India is currently the third largest emitter of greenhouse gases in the world, and relies mainly on coal to generate electricity.
Experts expect increased needs India energy than any other country in the next 20 years, which makes the current rapid expansion of renewable energy sources such as solar energy not enough to achieve climate goals.
Green hydrogen plan
The government recently approved $2.3 billion in funding to support production green hydrogenR, its use and export, with the aim of making India a global center for the nascent industry.
Experts say it will take at least 5-7 years for New Delhi to start exporting green hydrogen on the scale the government envisions.
India has set a target until 2030 to produce 5 million metric tons of green hydrogen annually, which will be used mainly for domestic consumption in sectors whose emissions are difficult to mitigate.
What is green hydrogen?
Green hydrogen is hydrogen produced through the electrolysis of water, powered by electricity generated from renewable energy sources.
Green hydrogen now represents a small part of global hydrogen use, which is estimated at about 70 million tons annually, as most of the hydrogen produced commercially is gray hydrogen, which is produced using fossil fuels, and blue hydrogen, which is also made using fossil fuels, but using carbon capture systems to reduce emissions .
Funding targets
The financing initiative aims to make green hydrogen affordable and reduce its cost over the next 5 years, and help India reduce its emissions and become a major green hydrogen exporter.
The financing will help add about 125 gigawatts of renewable energy by 2030, according to data seen by the specialized energy platform.
It is worth noting that India last year produced about 166 gigawatts of electricity from renewable energy sources.
Other goals are to create more than half a million new jobs, attract more private investment into the sector, and reduce imports Fossil fuelsand reduce greenhouse gas emissions by 50 million metric tons, ultimately supporting New Delhi’s plan to capture 10% of the global hydrogen market.
The government’s incentive is aimed at making green hydrogen more affordable and lowering its production cost, which currently ranges between 300 and 400 rupees ($3.68 and $4.90) per kilogram, according to industry sources.
* (1 dollar = 81.57 Indian rupees)
Fertilizer, refining, and iron and steel units currently consume gray hydrogen made from fossil fuels by 5 million tons annually.
The cost of producing gray hydrogen is around 200 rupees/kg, with gas costs driving prices up from 130 rupees/kg.
The government aims to promote the mandatory use of green hydrogen in fertilizer facilities, oil refineries and gas distribution networks in cities.
Attracting private investment
Since green hydrogen requires a lot of capital, the private sector in India has been reluctant to invest in it, so the government hopes that starting the green hydrogen industry will boost investor confidence. Sector experts say a more stable market would attract significant investment from both domestic and foreign capital.
India wants to follow the lead of countries such as China, the European Union and the United States, all of which have introduced some form of government incentive to generate green hydrogen.
So far, international observers expect significant reductions in the price of green hydrogen manufacturing in the coming years.
They also predict a 20-fold expansion of the industry, bringing its value to $80 billion by 2030.
Quit fossil fuels
India aims for hydrogen and ammonia to be the fuels of the future, to replace fossil fuels, and the Energy Ministry said that the production of these two types of fuel from renewable energy, called green hydrogen and green ammonia, is one of the country’s main requirements for environmentally sustainable energy security.
The ministry said the implementation of the policy will provide clean fuels for the general public in the country, reduce dependence on fossil fuels, and reduce imports of crude oil.
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