{"id":133035,"date":"2021-09-10T20:11:47","date_gmt":"2021-09-10T14:41:47","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=133035"},"modified":"2021-09-13T18:34:54","modified_gmt":"2021-09-13T13:04:54","slug":"making-green-hydrogen-viable-demands-financial-tech-support-to-lower-costs","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/making-green-hydrogen-viable-demands-financial-tech-support-to-lower-costs\/","title":{"rendered":"Making green hydrogen viable demands financial, tech support to lower costs"},"content":{"rendered":"\n<p><strong>Synopsis<\/strong>: Bringing down the cost of producing Green Hydrogen in India will require a mix of financial and technological interventions.<\/p>\n<h5><strong>Background<\/strong><\/h5>\n<ul>\n<li><strong>Read here<\/strong>: <span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/forumias.com\/blog\/green-hydrogen-explained-pointwise\/\" target=\"_blank\" rel=\"noopener\">Green Hydrogen &#8211; Explained, pointwise<\/a><\/strong><\/span><\/li>\n<\/ul>\n<h5><strong>What is the major issue with Green Hydrogen adoption?<\/strong><\/h5>\n<p><strong>Cost<\/strong>: According to The Energy and Resources Institute (TERI), the cost of green hydrogen production is $5-6 a kg, approximately thrice the cost of predominant technology that uses fossil fuels and is called \u201cgrey hydrogen\u201d.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Note<\/strong><\/span>: According to a compilation by the Scientific Information Re\u00adso\u00adurce Division at the Bhabha Atomic Re\u00adsearch Centre, most of the world\u2019s hydrogen production is grey.<\/p>\n<h5><strong>What is the present global scenario wrt Hydrogen production?<\/strong><\/h5>\n<p><strong>Scale<\/strong>: According to the International Renew\u00ada\u00adble Energy Agency\u2019s World Energy Transi\u00adtions Outlook report, <strong>less than 1%<\/strong> of annual global hydrogen production is green<\/p>\n<p><strong>Efforts<\/strong>: Investments are under way to ramp up green hydrogen manufacturing. In December 2020, seven companies \u2014 ACWA Power, CWP Re\u00adn\u00adewables, Envision, Iber\u00addrola, \u00d8rsted, Snam and Yara \u2014 announ\u00adced a <strong>global coalition<\/strong> to acce\u00adlerate the production of green hydrogen 50-fold in the next six years.<\/p>\n<p>These companies have targeted the deployment of 25 GW thro\u00adu\u00adgh 2026 of renewab\u00adles-based hydrogen production.<\/p>\n<h5><strong>At what price point will adoption of Green Hydrogen be feasible for industry?<\/strong><\/h5>\n<p>An analysis by the <strong>Hyd\u00adrogen Council<\/strong>, a Belgium-headquartered initiative to promote hydrogen adopt\u00adion, found that it will be feasible for steel and fertiliser production, power generation and long-range shipping to adopt green hydrogen if it is available at <strong>$2 per kg price.<\/strong><\/p>\n<h5><strong>What steps is India taking to push for Green Hydrogen?<\/strong><\/h5>\n<p>India is taking its first few steps.<\/p>\n<p>IndianOil recently anno\u00adunced that it is setting up the country\u2019s first green hydrogen plant at its <strong>Mathura refinery<\/strong>.<\/p>\n<p>IndianOil\u2019s R&amp;D centre has been working since the early 2000s to <strong>explore the use of hydrogen as a fuel<\/strong> by mixing it with compressed natural gas (CNG) to make H-CNG.<\/p>\n<p>In November 2020, govt announced the<strong> launch of the National Hydrogen Energy Mission.<\/strong><\/p>\n<p>In terms of government support for green hydrogen, a <strong>cabinet note proposing to make it mandatory for fertiliser plants and oil refineries<\/strong> is in the works.<\/p>\n<p>The govt also <strong>aims to extend the production-linked incentive (PLI) scheme<\/strong> for manufacturing electrolysers to produce green hydrogen.<\/p>\n<h5><strong>What are future projections for India wrt Green Hydrogen?<\/strong><\/h5>\n<p>According to industry body India Hyd\u00adrogen Alliance (IH2A), the annual demand for hydrogen in the country is around six million tonnes (MT), mostly from fertiliser plants and refineries.<\/p>\n<p>It needs to go up to 28 MT by 2050 and 40 MT by 2060 if the net-zero carbon target is to be achieved. However, by 2050, nearly 80 per cent of India\u2019s hydrogen is projected to be green \u2014 produced by renewable electricity and electrolysis.<\/p>\n<h5><strong>What steps India must take?<\/strong><\/h5>\n<p><strong>Reducing expenditure on Electrolysers<\/strong>: Indigenous development of critical materials and local innovation for components can help reduce electrolyser capital expenditure to below $300 per kilowatt.<\/p>\n<p><strong>Attractive financial incentives<\/strong> like the PLI scheme for electrolysers.<\/p>\n<p><strong>National H2-themed Energy Transition Fund<\/strong>: India should create a national H2-themed Energy Transition Fund, with co-funding partnerships with sovereign partners, multi-lateral agencies, clean energy\u00a0funds and industry, with the aim to raise $1 billion by 2030 for deployment towards national hydrogen projects of a certain scale.<\/p>\n<p><strong>Source<\/strong>: This post is based on the article \u201c<strong>Making green hydrogen viable demands financial, tech support to lower costs<\/strong>\u201d published in <strong>Business Standard<\/strong> on <strong>10<sup>th<\/sup> Sep 2021<\/strong>.<\/p>\n<p><strong>Terms to know<\/strong><\/p>\n<ul>\n<li><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/forumias.com\/blog\/hydrogen-council\/\">Hydrogen Council<\/a><\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis: Bringing down the cost of producing Green Hydrogen in India will require a mix of financial and technological interventions. Background Read here: Green Hydrogen &#8211; Explained, pointwise What is the major issue with Green Hydrogen adoption? Cost: According to The Energy and Resources Institute (TERI), the cost of green hydrogen production is $5-6 a&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/making-green-hydrogen-viable-demands-financial-tech-support-to-lower-costs\/\">Continue reading <span class=\"screen-reader-text\">Making green hydrogen viable demands financial, tech support to lower costs<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[768,216,8884,9632,3222],"class_list":["post-133035","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-energy","tag-gs-paper-3","tag-hydrogen","tag-hydrogen-fuel-economy","tag-renewable-energy","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700800796,"cached_date":1704609259},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/133035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=133035"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/133035\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=133035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=133035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=133035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}