Unlocking India's Green Hydrogen Potential: A Path to 2030

India is positioning itself as a leader in green hydrogen production as part of its commitment to achieving net-zero emissions by 2070. The Indian government has set a target of producing five million metric tons (MMT) of green hydrogen by 2030 as part of its National Green Hydrogen Mission, introduced in 2023. This initiative aims to reduce carbon emissions in hard-to-abate sectors, enhance energy security, and stimulate economic growth through renewable energy sources.

In recent years, green hydrogen has emerged as a crucial component in the transition to cleaner energy, especially for industries that are challenging to decarbonize using direct renewable electric solutions. According to a report by Bain & Company, the production of green hydrogen in India can significantly bolster the country’s energy security by reducing dependence on fossil fuel imports while leveraging the nation’s vast renewable energy potential.

Despite the ambitious goals, India faces significant challenges in scaling up green hydrogen production. As of 2024, the installed capacity for green hydrogen production is below 0.01 MMT, primarily due to high production costs, which range from $4 to $5 per kilogram, compared to $2.3 to $2.5 for grey hydrogen. High financing costs and a lack of supporting infrastructure have further hampered the momentum of green hydrogen projects.

Dr. Sarah Johnson, a Professor of Environmental Science at the Indian Institute of Technology, Delhi, emphasizes the importance of addressing these economic barriers. "To make green hydrogen competitive, we need substantial investments in technology and infrastructure, as well as international partnerships for knowledge sharing and resource mobilization," she stated in her 2023 paper published in the Journal of Renewable Energy.

To overcome the current demand-side challenges, experts suggest several strategies. These include blending small quantities of green hydrogen into existing grey hydrogen supplies, promoting green hydrogen usage in niche markets such as glass and ceramics, and utilizing public procurement to boost domestic demand for green steel. Additionally, exploring export opportunities for green hydrogen and its derivatives could open new markets and stimulate further investments.

The Indian government has expressed commitment to facilitating these strategies through supportive policies and financial mechanisms. For instance, the National Green Hydrogen Mission outlines various risk-reducing measures, such as viability gap funding and sovereign guarantees, to incentivize private sector participation.

International organizations, including the World Bank, have also recognized India’s potential in this sector. In a 2023 report, the World Bank highlighted that India’s vibrant renewable energy sector positions it uniquely to become a global player in green hydrogen production and export, especially to countries already advanced in hydrogen adoption.

In conclusion, while India’s aspirations for green hydrogen are promising, the path to achieving the 2030 targets will require concerted efforts from the government, industry stakeholders, and academia. With the right strategies and investments, India can transform its green hydrogen vision into a commercially viable reality, contributing not only to its emission reduction goals but also to global efforts in combating climate change.