Challenges and Opportunities in Green Hydrogen Production: Insights from India and Europe
Key Ideas
  • Indian industry raises concerns about the delegated legislation following the European Union's Renewable Energy Directive (RED II) and its impact on green hydrogen production.
  • Issues such as geographic and temporal correlation, single bidding zones, and additionality are highlighted, with the hope of further discussions with the European Commission for clarification.
  • European criteria for defining 'green' hydrogen, focusing on the source of electricity for the electrolyser, are discussed by Jorgo Chatzimarkakis from Hydrogen Europe.
  • The potential for India as a single bidding zone to lower production costs of green hydrogen, enhance export opportunities to Europe, and leverage its synchronized interconnected electricity grid is emphasized.
Power Secretary Pankaj Agarwal of India addressed concerns raised by the Indian industry regarding the European Union's Renewable Energy Directive (RED II) during the International Conference on Green Hydrogen. The industry is troubled by aspects like geographic and temporal correlation, single bidding zones, and additionality in the delegated legislation following RED II. Jorgo Chatzimarkakis from Hydrogen Europe explained the European criteria for classifying hydrogen as 'green,' emphasizing the importance of real-time renewable electricity for the electrolyser. Furthermore, discussions highlighted the hindrance caused by single bidding zones in Europe and the potential benefits of considering India as a single bidding zone to reduce production costs and facilitate exports of green hydrogen to Europe. The Indian government sees an opportunity in meeting Europe's green hydrogen demand by leveraging India's large synchronized interconnected electricity grid and low quantum of uncleared electricity. This aligns with Europe's target to import 10 million tonnes of green hydrogen by 2030. The sentiment in the article is positive, with an emphasis on mutual cooperation between India and Europe to address regulatory challenges and enhance the green hydrogen market.
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