The Green Hydrogen Policy notified on February 17 is another step by India to meet its climate targets. It is part of the National Hydrogen Mission announced last year, and one in a series of measures providing a set of concessions for making renewable energy (RE) available at almost generation cost for hydrogen production. This policy does not address developmental issues confronting the mainstreaming of hydrogen energy.
Despite its unique advantages and possibilities, supply challenges and cost-economics have held back replacement of fossil fuels, and augmentation of RE with green hydrogen (GH), hydrogen produced via RE sources. At current prices, the estimated cost of GH (produced from solar power at ₹2 per unit) and ammonia produced from GH, is 4-6 times that of hydrogen produced by fossil fuels. Most reports, such as those by the International Energy Agency (IEA) and International Renewable Energy Agency (IRENA), suggest that if cost-reduction trends continue, GH and green ammonia could be cost-competitive by 2030.
Almost all major economies have declared GH strategies. These strategies primarily focus on developmental challenges of reducing production cost and achieving scale of GH; demand creation, fiscal and financial incentives; public funding for hydrogen infrastructure development, and demonstration projects in mobility, industry and energy sectors. Japan spends around $500 million annually, and has aimed to achieve hydrogen power generation cost of $0.16 per unit by 2030. Australia has set a target of GH production cost less than $1.40 per kg.
For India, addressing developmental challenges related to cost, efficiencies and infrastructure will be crucial. This will also help curb import dependency for crucial components such as electrolysers and fuel cells. In this context, it is critical to learn from the National Solar Mission. Twelve years after the mission was launched in 2010, India is still struggling to keep pace with global technology trends and production at globally competitive rates. So much so that GoI is compelled to enhance allocation to ₹19,500 crore for a production-linked incentive (PLI) to enthuse domestic manufacturing.
Read More at https://economictimes.indiatimes.com/industry/renewables/what-india-should-do-to-become-a-leader-in-green-hydrogen/articleshow/89907786.cms