Green Hydrogen Is Critical to India’s Economic Development and Net-Zero Ambitions: Report

What is the News?

NITI Aayog has released a report titled “Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India”.

What is Green Hydrogen?

Green hydrogen is hydrogen gas produced through the electrolysis of water — an energy intensive process for splitting water into hydrogen and oxygen — using renewable power to achieve this.

The demand for Green Hydrogen

The report predicted that hydrogen demand in India could grow more than four-fold by 2050, representing almost 10% of global hydrogen demand. 

In the longer term, steel and heavy-duty trucking are likely to drive the majority of demand growth, accounting for almost 52% of total demand by 2050. 

Benefits of Adoption of Green Hydrogen

Adoption of green hydrogen will result in 3.6 giga tonnes of cumulative CO2 emissions reductions between 2020 and 2050.

Energy import savings from green hydrogen can range from $246 billion to $358 billion within the same period.

Beyond the financial savings, the energy security that green hydrogen provides will translate to less volatile price inputs for India’s industries as well as strengthen India’s foreign exchange situation in the long run. 

What are the recommendations given by the report to adopt Green Hydrogen?

Firstly, it has recommended tax breaks like reduction or exemption of GST and customs duties on green hydrogen production.

Secondly, facilitate investment through demand aggregation and dollar-based bidding for green hydrogen.

Thirdly, set up green hydrogen corridors in participation with states starting with three such corridors, and funding startups working in the space.

Fourthly, promote exports of green hydrogen and green hydrogen-embedded products through a global hydrogen alliance.

Fifthly, initiate green hydrogen standards and a labelling programme.

Note: In February 2022, the Centre notified the Green Hydrogen and Green Ammonia Policy.

Source: The post is based on the article “Green Hydrogen Is Critical to India’s Economic Development and Net-Zero Ambitions: Report” published in PIB on 29th June 2022