Unlocking the potential of green hydrogen 

News: The ongoing Russia-Ukraine conflict has increased the prices of crude oil, natural gas and fertilizers, highlighting India’s vulnerability to geopolitical sanctions.

Therefore, the Union Transport Minister’s statement on hydrogen-powered cars in Parliament has brought the green hydrogen economy into focus. 

Moreover, hydrogen is an important industrial gas. It is used on a large scale in petroleum refining, steel, and fertiliser production. And India already has a large and growing capacity base in all these industries.  

What are the probs with renewable energy (RE) tech?

RE generation is done intermittently. It is because electricity cannot be stored using battery technology at a grid scale. For example, Europe’s renewable generation fell in the last months of 2021.

The financial viability of green power is questionable in India. For example, it is proposed to replace coal-based power which is the cheapest form of energy. In addition, the DISCOMs, the buyer of RE, are not financially sound. 

EV (electric vehicle) technologies have limitations. Much of India’s oil is burnt in heavy trucks (not cars and two-wheelers) which are difficult to run on lithium batteries. 

Electric vehicles require large quantities of critical minerals (like lithium and cobalt). India does not have their domestic reserves. Therefore, India will have to import them, which is prone to supply chains disruptions.  

What are the challenges of creating and distributing hydrogen at a national level? 

It requires creation of large-scale refuelling network infrastructure if green hydrogen is used as the transportation fuel.  

What are the ways to catalyse a hydrogen economy in India? 

Hydrogen-fuelled vehicles (in form of forklifts, cranes, trucks, tractors etc.) can be promoted in some specified gated areas like Airports, ports and warehouses. It will create demand that will allow manufacturers to bring vehicles that can use hydrogen fuel cells into the market. 

Promoting hydrogen blended with natural gas: Many gas-fired power generation plants are operating at a very low-capacity due to the high price of natural gas. Therefore, the hydrogen blended with natural gas can be promoted in these plants. 

– It can be blended with compressed natural gas (CNG). It can then be used as a fuel for vehicles in Delhi, Mumbai and some other cities. This will partly counter the need for imported natural gas 

The government needs to boost private sector participation. For example, start-ups can be promoted in this sector. They should be linked with angel investors, venture capital and private equity backers.  

Also, India needs some specialist players to execute projects as well as finance them.  The CNG networks in Mumbai and Delhi were created by MGL and IGL, and Petronet LNG was set up for creating India’s first LNG terminal.

– Establishing specialised companies with a clear focus has helped projects get off the ground. This approach can be repeated for green hydrogen. However, government participation in such a company must be capped at 50%.

Source: The post is based on an article “Unlocking the potential of green hydrogen” published in the Indian Express on 5th April 2022.