India’s Green Hydrogen Mission: Hype or reality?

India’s Green Hydrogen Mission is one of the most ambitious and forward-thinking projects the government has embarked upon, aiming to transform the country into a global leader in green energy. As part of its vision, India plans to produce 5 million tonnes of green hydrogen annually by 2030, which is in line with its broader climate goals of achieving net-zero emissions by 2070. But while the intent is clear and commendable, the road to achieving these ambitious targets is fraught with significant challenges. This article explores the objectives, hurdles, and the ways forward to ensure the mission’s success.

The Intent Behind the Green Hydrogen Mission

The Green Hydrogen Mission, launched in 2021, forms part of India’s strategic push toward sustainable energy. Hydrogen, particularly green hydrogen, which is produced through electrolysis powered by renewable energy, is seen as a clean fuel that can decarbonize sectors that are otherwise difficult to electrify, such as heavy industry, shipping, and transportation.

Key goals of the Green Hydrogen Mission include:

1. Decarbonizing Industries: Hydrogen offers a viable alternative to fossil fuels in sectors like steel, cement, and chemicals, where electrification is not feasible.

2. Energy Independence: By reducing reliance on imported fossil fuels, India aims to secure its energy future while fostering self-reliance.

3. Global Leadership: The mission is also seen as a step toward establishing India as a global leader in green hydrogen technology and export.

4. Job Creation & Economic Growth: The green hydrogen economy is expected to generate thousands of jobs, stimulate new industries, and boost the domestic manufacturing sector.

Challenges in Realizing the Targets

While the government’s intentions are clear, the journey to realizing these goals is marred by several obstacles. Here are some of the primary challenges:

1. High Production Costs: Green hydrogen is still significantly more expensive to produce than grey hydrogen (produced from natural gas). The cost of electrolysers, renewable electricity, and the infrastructure needed for production are key drivers of the high costs. In India, where the demand for energy is growing rapidly and costs of renewable energy generation are volatile, reducing the cost of green hydrogen will be critical to making it a viable option.

2. Scaling Up Infrastructure: India currently lacks the necessary infrastructure for hydrogen production, storage, and distribution. Developing hydrogen pipelines, refuelling stations, and ensuring a stable supply chain are massive undertakings that require substantial investment and time.

3. Access to Affordable Renewable Energy: The success of green hydrogen depends on cheap and abundant renewable energy. While India has made significant progress in solar and wind energy generation, the intermittency of these energy sources and regional imbalances in production could impact the steady supply needed for hydrogen production.

4. Technological Barriers: The electrolysers used to produce green hydrogen are expensive and not yet efficient enough at scale. India lacks a domestic manufacturing ecosystem for these critical components, making the country reliant on imports. Furthermore, advances in storage and transportation technology are needed to ensure hydrogen can be safely and efficiently distributed.

5. Policy and Regulatory Hurdles: Despite the Green Hydrogen Mission’s launch, there is a lack of clear and consistent policies surrounding the production, distribution, and use of hydrogen. Additionally, the regulatory frameworks around safety standards, carbon pricing, and incentives for private investment remain undefined, leading to uncertainty in the market.

Key Solutions:

To address these challenges and move beyond the hype, India needs a well-coordinated strategy involving policy reforms, technological innovation, and collaboration across sectors. Here are some ways the government and industry can work together to achieve the targets set by the Green Hydrogen Mission:

1. Government Incentives and Policy Support: The government needs to create a conducive policy environment for green hydrogen. This can include subsidies or tax incentives for hydrogen production, storage, and transportation, as well as investments in research and development to drive down production costs. Streamlining regulations and creating a clear roadmap for the industry will give investors the confidence to commit long-term capital to this space.

2. Partnerships with Private Sector & International Cooperation: Public-private partnerships (PPPs) can help pool resources and expertise, particularly in the early stages of hydrogen production. Additionally, India could benefit from collaborating with international players who have more advanced technology and experience. Joint ventures and collaboration with global leaders in green hydrogen technology could help accelerate local innovation.

3. R&D and Innovation: Significant investments in R&D are required to reduce the cost of electrolysers and improve their efficiency. Moreover, breakthroughs in hydrogen storage, transport technologies, and fuel cell innovations will be pivotal in scaling the sector. India should focus on creating innovation hubs that bring together academia, research institutions, and the private sector.

4. Building a Robust Infrastructure: Developing the hydrogen ecosystem will require creating storage and transportation networks. The government can encourage the development of hydrogen refuelling stations, pipelines, and distribution systems through public-private partnerships and funding for infrastructure projects. Collaboration with state-owned enterprises like Indian Oil Corporation or NTPC, who have experience in energy infrastructure, could expedite the process.

5. Localized Green Energy Solutions: Harnessing regional renewable energy resources like solar power in Rajasthan or wind power in Tamil Nadu can help ensure a more stable and localized supply for green hydrogen production. Grid balancing techniques, including battery storage systems, could also mitigate intermittency issues and support consistent production.

6. Export Potential and International Markets: One of the most exciting aspects of India’s green hydrogen mission is the potential for exports. India could become a major exporter of green hydrogen to energy-hungry countries like Japan, South Korea, and parts of Europe. To do so, the government should push for international partnerships, build export infrastructure, and meet international standards for hydrogen quality and safety.

Conclusion: Moving from Hype to Reality

India’s Green Hydrogen Mission holds enormous potential to reshape the energy landscape, address climate change, and position India as a global player in clean energy. However, the mission is not without its challenges—ranging from cost competitiveness and infrastructure deficits to technological barriers and regulatory complexities. To turn the vision into a reality, India will need to foster a collaborative ecosystem involving governments, industry, and research bodies. Through a combination of supportive policies, technological innovation, and robust infrastructure development, the Green Hydrogen Mission can catalyse India’s transition to a sustainable energy future. With the right investments and strategies in place, India’s green hydrogen dream can evolve from hype to tangible, transformative reality.

Views are personal. The author is AVP - Strategic Investments, AMPIN Energy Transition