Decoding India's Strategy for Green Hydrogen Success
Key Ideas
- India aims to generate incremental renewable electricity to produce green hydrogen, avoiding diversion from existing capacity.
- Cost reduction is crucial for green hydrogen to be commercially viable, with investments needed in technology and partnerships.
- Addressing hydrogen leakage risks through better infrastructure and monitoring is essential to maximize climate benefits.
- India's potential to export green hydrogen presents economic, environmental, and strategic advantages, especially to high-cost renewable energy markets.
Green hydrogen is gaining attention in India as a solution to high energy needs where electricity is not efficient. The country's strategy involves focusing on generating additional renewable electricity specifically for green hydrogen production, rather than diverting existing capacity. To achieve commercial viability, the cost of green hydrogen production needs to decrease significantly from the current $5/kg to below $1.50/kg, necessitating investments in technology and collaboration across sectors. Energy security is emphasized, with India aiming to manufacture a significant portion of electrolysers domestically to reduce dependence. The risk of hydrogen leakage, which can offset climate benefits, needs to be addressed through improved infrastructure and monitoring. Moreover, India sees potential in exporting green hydrogen, particularly to markets with high renewable energy costs. By aligning its priorities with environmental goals, economic development, and strategic positioning, India is poised to make significant advancements in the global green hydrogen market.