Green hydrogen mission: A green promise

Source: The post is based on the following articles

“A green promise – Small enterprises can be the mainstay of the green economy” published in The Hindu on 6th January 2023.

“Green hydrogen has got a spark that it deserves” published in the Livemint on 6th January 2023.

Syllabus: GS 3 – Indigenization of technology and developing new technology.

Relevance: About green hydrogen mission.

News: The Union Cabinet has recently approved the National Green Hydrogen Mission.

About the National Green Hydrogen Mission.

By 2030, the mission aims to have at least 5 million metric tonnes of annual green hydrogen production, electrolyser capacity of 60-100 gigawatts and a 125-gigawatt renewable energy capacity for green hydrogen and its associated transmission network.

What is green hydrogen?

What is the need for a green hydrogen mission?

a) Green hydrogen holds the promise of global leadership as the industry is still nascent worldwide, b) The EU, US and others have allocated big budgets for cleanly made hydrogen that can fuel vehicles, furnaces and other fuel-guzzlers, and c) Hydrogen is an essential industrial fuel that has a range of uses from producing ammonia, making steel and cement, to powering fuel cells that can run buses and cars. But, the cheapest way to manufacture this is to rely on fossil fuel. With a dedicated green mission India can generate it without any concerns of global warming.

What are the potential uses of Green Hydrogen?

a) Ideal way to decarbonize transport and other sectors like steel, b) Provide much-needed policy flexibility for the government. For instance, as technology widens India’s fuel choice set, the government will get more space to manage external trade balances.

What are the potential challenges in implementing the green hydrogen mission?

High cost: Right now, an estimated ₹300-400 is required to produce a kilogram of green hydrogen. This must be brought down to under ₹100 for Indian output to be globally competitive.

Issue of efficiency: To improve efficiency every link of the supply chain has to be kept secure, that includes cheaply made but dependable electrolysers. Domestic energy deficiency has been a constraint in India.

India’s potential to deliver: Despite policies, India has not managed to be a net exporter of solar cells, semiconductors or wind power components. This is because India’s underlying manufacturing base continues to be weak and unable to efficiently absorb and utilise global capital.

What should be done to achieve green hydrogen mission targets?

India should move towards decarbonization. This is because at present decarbonization is a big policy focus around the world. For that, the green hydrogen mission is a good step. But it should be accompanied by a) Extension of production-linked incentive schemes to the green hydrogen sector, b) Investment in Cutting-edge R&D technologies, and c) Strengthening small manufacturing and allied enterprises’ infrastructure. This will create a strong manufacturing base as small enterprises will be the mainstay of any green economy.