{"id":230276,"date":"2023-03-07T20:41:38","date_gmt":"2023-03-07T15:11:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=230276"},"modified":"2023-03-07T20:41:38","modified_gmt":"2023-03-07T15:11:38","slug":"how-to-become-a-green-hydrogen-superpower","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-to-become-a-green-hydrogen-superpower\/","title":{"rendered":"How to become a green hydrogen superpower"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cHow to become a green hydrogen superpower\u201d <\/strong>published in The Hindu <\/strong>on 7th March 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Infrastructure: Energy<\/p>\n

Relevance: <\/strong>Non-fossil sources of energy<\/p>\n

News- <\/strong>The 2023 Union Budget has allocated \u20b919,700 crore for the National Green Hydrogen Mission.<\/p>\n

What is the potential of green hydrogen for India?<\/strong><\/h2>\n

India has committed to 50% electricity capacity from non-fossil sources by 2030<\/strong>. But an energy transition in industry<\/strong> is needed at the same time. Most industrial greenhouse gas emissions in India come from steel, cement, fertilizers and petrochemicals.<\/p>\n

Green hydrogen can lead to industrial growth <\/strong>while simultaneously reducing industrial emissions.<\/strong> It can serve as an energy source for heavy industry, long distance mobility, aviation, and power storage. It can also serve as an energy carrier.<\/strong><\/p>\n

India is targeting at least five million tonnes of production by 2030.<\/strong> This would create demand for 100\u00ad-25 gigawatts of renewable energy, 60\u00ad100 GW of electrolysers, investment opportunity of \u20b98 lakh crore, and cut 50 MMT of annual emissions.<\/strong><\/p>\n

India has abundant sunshine and significant wind energy resources. It is geographically blessed <\/strong>to become one of the lowest cost producers of green hydrogen.<\/strong><\/p>\n

What should be the priorities of the government for the success of the mission?<\/strong><\/h2>\n

First<\/strong>, domestic demand <\/strong>is critical. If we are not a big player domestically, we cannot be a major player in the international market.<\/p>\n

The mission introduces a Strategic Interventions for Green Hydrogen Transition fund<\/strong> for five years, with \u20b913,000 crore as direct support to consume green hydrogen. This will encourage heavy industries to increase demand, offering economies of scale.<\/strong><\/p>\n

Blending mandates for refineries<\/strong> can be another demand trigger. Urea plants have been exempted.<\/p>\n

Another approach is to leverage government procurement<\/strong>. India is the second\u00ad largest steel producer in the world. Costs of green steel<\/strong>, made from green hydrogen<\/strong>, are currently much higher.<\/p>\n

But, this could be reduced with economies of scale and changes in production technologies<\/strong>. A share of government procurement of steel may be green steel. <\/strong><\/p>\n

Second<\/strong>, India can be an attractive destination for domestic and foreign investment<\/strong>. GreenHydrogen production projects in India are far fewer compared to others. Green hydrogen is difficult and expensive to transport. <\/strong><\/p>\n

The mission envisions green hydrogen hubs to consolidate production, end use and exports<\/strong>. A mission secretariat<\/strong> can ensure project clearance is streamlined and reduce financial risks.<\/strong><\/p>\n

Third<\/strong>, the SIGHT fund offers \u20b94,500 crore<\/strong> to support electrolyser manufacturing<\/strong> under the performance linked incentive scheme<\/strong>. Currently, manufacturers are importing stacks and assembling them.<\/p>\n

India must become more competitive<\/strong> with targeted public funding<\/strong> in manufacturing the most critical and high value components of electrolysers in India.<\/p>\n

Electrolyser technology <\/strong>must be improved to achieve higher efficiency goals, specific application requirements<\/strong>, be able to use non freshwater, and substitute critical minerals.<\/strong><\/p>\n

Fourth<\/strong>, establish bilateral partnerships to develop resilient supply chains<\/strong>. Globally, about 63 bilateral partnerships have emerged; Germany, South Korea and Japan have the most.<\/p>\n

Using yen\u00ad or euro denominated loans for sales to Japan or to the EU, could reduce the cost of capital <\/strong>and help us become export competitive.<\/strong><\/p>\n

Many bilateral deals focus on import \u00adexport but few deal with technology transfer or investments<\/strong>. India must cooperate with like minded countries<\/strong> on trade, value chains, research and development, and standards.<\/p>\n

The mission allocates \u20b9400 crore for R&D<\/strong>, which can be leveraged to crowd in private capital into technology co\u00addevelopment.<\/strong><\/p>\n

Indian companies should consider joint projects<\/strong> in countries with good renewable energy resources and cheap finance.<\/p>\n

Finally<\/strong>, India must coordinate with major economies to develop rules for a global green hydrogen economy. <\/strong><\/p>\n

In the absence of common global frameworks<\/strong>, rules and standards are being driven by collectives of private corporations rather than through structured intergovernmental processes.<\/strong><\/p>\n

There are already signs of conflicting regulations and protectionist measures<\/strong> in majormarkets. These put India\u2019s ambitions at risk.<\/p>\n

India\u2019s G20 presidency is an opportunity to craft rules for a global green hydrogen economy.<\/strong>These rules must address operational threats, industrial competitiveness and strategicthreats. <\/strong><\/p>\n

India should promote a global network on green hydrogen<\/strong> via which companies couldcollaborate.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cHow to become a green hydrogen superpower\u201d published in The Hindu on 7th March 2023. Syllabus: GS3- Infrastructure: Energy Relevance: Non-fossil sources of energy News- The 2023 Union Budget has allocated \u20b919,700 crore for the National Green Hydrogen Mission. What is the potential of green hydrogen for… Continue reading How to become a green hydrogen superpower<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,10498],"class_list":["post-230276","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/230276","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=230276"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/230276\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=230276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=230276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=230276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}