With green hydrogen emerging as a transformative solution to mitigate environmental impact and foster sustainable development, India stands at a pivotal point in its energy transition journey.

Green hydrogen which is produced through electrolysis using renewable energy sources such as solar and wind has gained global recognition as a clean and versatile energy carrier.

According to a report by International Energy Agency, seventeen national governments and the European Union adopted targets for deploying electrolysis capacity by 2030. These targets account for 140- 150 GW of capacity by 2030, mainly coming from the announcements by India (54 GW of estimated capacity).

Backed by abundant renewable resources and ambitious renewable energy targets, India is strategically positioned to play a key role in the global green hydrogen market.

Green hydrogen, also known as renewable hydrogen, is generated through electrolysis, a process where water is split into hydrogen and oxygen using electricity from renewable sources such as solar photovoltaic (PV) and wind turbines.

Unlike conventional grey hydrogen derived from natural gas, green hydrogen does not emit greenhouse gases during production, making it a zero-emission fuel with immense potential to decarbonise various sectors, including transportation, industry, and power generation.

Challenges

As the country is witnessing the dawn of green hydrogen movement in the backdrop of the National Green Hydrogen Mission (NGHM) and Strategic Interventions for Green Hydrogen Intervention (SIGHT) getting notified by the centre, there is a long way to go and the widespread adoption of green hydrogen in India faces several significant challenges that span across economic, infrastructural, and environmental domains.

According Saarthi GreenTech, a company that transforms diesel engine into a hydrogen-diesel hybrid instantly, the production of green hydrogen relies on establishing solar and wind energy ecosystems capable of providing uninterrupted power to electrolyzers, ensuring minimal CO2 emissions. However, the high upfront costs associated with setting up such infrastructures, coupled with the lengthy return on investment, deter many potential investors. This financial barrier inhibits the scalability of green hydrogen production in India.

Alok Kumar, Co-founder, Saarthi GreenTech said, "India's renewable energy infrastructure, while expanding, still grapples with issues of availability, reliability, and transmission. Insufficient infrastructure, including pipelines and storage facilities, adds complexity to the storage and distribution of green hydrogen."

Assessing the current cost competitiveness of green hydrogen compared to traditional fossil fuels in India involves considering various factors such as production costs, infrastructure, and market dynamics. As of now, green hydrogen production remains more expensive than traditional fossil fuels due to the high upfront costs associated with renewable energy infrastructure and electrolysis technology.

For instance, the cost of green hydrogen production in India is estimated to be around INR 250 to INR 450 per kilogram, significantly higher than the production cost of grey hydrogen derived from fossil fuels, which ranges from INR 110 to INR 180 per kilogram. This cost disparity poses a challenge to the widespread adoption of green hydrogen, especially in sectors where cost competitiveness is crucial.