India's Path to Net Zero: Strategies for Green Hydrogen Production
Key Ideas
  • Learning from successful solar mission, India aims to attract private capital for green hydrogen projects through long-term supply contracts.
  • TERI suggests a competitive industry structure and sector-specific pilot projects as critical milestones.
  • Procurement of green hydrogen through competitive bidding and creation of Special Purpose Vehicles are recommended.
  • Pilot projects for green steel, green urea, and hydrogen heavy-duty trucks are proposed to drive innovation and market competitiveness.
The Energy and Resources Institute (TERI) in India has proposed adapting the successful strategies of the country's Solar Mission to accelerate the production of green hydrogen and downstream green products as part of the National Hydrogen Mission. By leveraging long-term supply contracts similar to Power Purchase Agreements (PPAs), India aims to attract private investment in green hydrogen projects, reducing market risks and ensuring a competitive market for green hydrogen production. The strategy includes setting up sector-specific pilot projects and creating Special Purpose Vehicles under the Ministry of New and Renewable Energy for procurement and supply of green hydrogen. One of the key recommendations is the establishment of a one million tons per annum green steel pilot plant, with potential government funding to de-risk the investment. Additionally, a pilot plant for green urea production and the implementation of hydrogen heavy-duty trucks on busy routes are proposed to drive innovation and market adoption of green technologies. These initiatives are designed to create globally competitive capacities in zero-carbon products and encourage market participants to prioritize green products for potential export markets. The approach outlined by TERI aims to discover the actual cost of zero-carbon products, discuss inter-sectoral priorities, and facilitate the scaling up of green hydrogen production in India.
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