In a groundbreaking collaboration, the World Economic Forum and Bain & Company have released a pivotal report titled “Green Hydrogen: Enabling Measures Roadmap for Adoption in India.” The report delves into the crucial role of green hydrogen, produced through water electrolysis powered by renewable energy, in transforming India’s energy landscape. Not only does green hydrogen present a sustainable alternative for sectors such as fertilizers, chemicals, refining, and iron, but it also stands as a key player in reducing carbon emissions compared to conventional fossil fuels.
India, currently ranking as the third-largest global economy in terms of energy needs, is poised to witness a staggering 35% surge in demand by 2030. As of 2022, the nation’s energy import bill reached a substantial $185 billion, a figure expected to escalate if traditional energy methods persist. In response to the escalating energy challenge and in alignment with global climate commitments, India has committed to achieving net-zero emissions by 2070.
Recognizing the indispensable role of green hydrogen in meeting energy security needs and mitigating emissions in challenging industrial sectors, the Indian government launched the National Green Hydrogen Mission in early 2022. With an allocated incentive funding of approximately $2.3 billion spanning the years 2022 to 2030, the mission aspires to produce 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030.
Despite India’s vast renewable energy potential, encompassing an estimated 748 gigawatts (GW) of solar capacity at full potential, on-the-ground traction for green hydrogen remains limited. Challenges include addressing the cost of production and delivery on the supply side and ensuring the readiness of Indian industries to embrace green hydrogen on the demand side.
The report puts forward five strategic goals designed to expedite the adoption of green hydrogen in India. These goals include achieving a cost of $2/kg to attain parity with grey hydrogen on the supply side and creating incentives for end industries to seamlessly integrate green hydrogen into their processes on the demand side. By focusing on these goals, the report aims to propel the growth of the green hydrogen demand-and-supply ecosystem, facilitating India’s trajectory towards a net-zero emissions future by 2070.
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