Building a Globally Competitive Green Hydrogen Industry for Decarbonization
Key Ideas
- TERI's paper highlights Green Hydrogen as crucial for achieving net zero in hard to abate sectors, aiming for competitive global carbon-free production capacities.
- The strategy involves implementing sector-specific pilot projects to drive down costs and become the least cost producers of green hydrogen.
- Emphasis is put on well-funded technology development and competitive domestic industry structure to achieve desired outcomes in creating a competitive green hydrogen industry.
- The paper emphasizes the importance of repeated bids driving firms towards cost efficiency and innovation in the green hydrogen sector.
The paper 'Green Hydrogen: Path to Decarbonization' by TERI examines the role of Green Hydrogen in achieving net zero emissions in hard to abate sectors. It emphasizes that Green Hydrogen is a means to an end, not an end in itself, due to limited government finances. The focus is on creating globally competitive carbon-free production capacities in downstream hard to abate sectors through a competitive industry structure. The strategy involves implementing sector-specific pilot projects to drive down costs and become the least cost producers of green hydrogen. The aim is to then use green hydrogen for carbon-free production of goods and services. The paper advocates for well-funded technology development and deployment by a competitive domestic industry structure to achieve these goals. By encouraging firms to bid repeatedly, the industry is expected to move down the cost curve, driving innovation and cost efficiency in the green hydrogen sector.