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Establishing A Flourishing Green Hydrogen Economy: Lessons From The Solar Story

The global effort to combat climate change has become a race against time. While solar energy, once a niche sector, has emerged as a mainstream energy solution, it took over a decade of sustained effort, investment, and technological advancement to get there. With global warming accelerating, we no longer have the luxury of time for green hydrogen to follow the same timeline.

Green hydrogen, often hailed as the “fuel of the future,” could play a pivotal role in achieving global decarbonisation goals. Yet, as other countries and companies surge ahead in renewable energy deployment, delay in tapping the green hydrogen potential would mean falling behind both environmentally and economically. Global emissions must be cut in half by 2030 to align with a 1.5°C pathway, according to the UNEP Emissions Gap Report 2023. Prioritising green hydrogen is no longer an option; it’s a necessity. (Source)

Two Key Challenges for the Green Hydrogen Industry

Despite its immense potential, green hydrogen faces two critical roadblocks—high costs and technological challenges. Drawing parallels with solar technology provides insight into these challenges while emphasising the need for urgent action.

1. High Costs
  Green hydrogen production is currently expensive due to the high costs of electrolysis and renewable energy sources required for production.
  According to the International Renewable Energy Agency (IRENA), green hydrogen costs range between $3 and $8 per kilogram, whereas fossil-based hydrogen costs under $2. Solar energy had once faced similar challenges in the early 2000s, with photovoltaic (PV) cells costing over $3 per watt. (Source)
  In recent times, thanks to scaling, technological innovation, and supportive policies, PV costs have dropped below $0.20 per watt.
2. Technological Challenges
  Producing, storing, and distributing hydrogen requires innovative technological interventions. Unlike solar energy, where the technological value chain is relatively inherently simple, and has further simplified over the past several years of implementation, hydrogen requires advancements across its whole value chain, including electrolysers, storage systems, transportations solutions, (vessels, pipelines etc), advance metallurgy for storage & transportation, refinement of use cases like SAF and exploring new use cases. (Source)
  We cannot afford to wait another decade for green hydrogen to become competitive; acceleration is required. Solar energy surely took a while to become mainstream and get the momentum to get to where it is now. However, the urgency to scale cost reductions in hydrogen must match—or even exceed—the historical efforts made for solar energy.

Two Solutions to Accelerate Hydrogen Energy Adoption

To make hydrogen technology as mainstream as solar technology—but in half the time—scaling and technological advances must be prioritised.

1. Scaling the Industry
  Scaling production and infrastructure is crucial. Globally, ambitious targets have been announced in relation to green hydrogen production and electrolyser manufacturing capacities. India has set up an ambitious target of producing 5MMTPA of green hydrogen by year 2030. Countries like Japan and Germany have already made significant strides, with Japan targeting 3 million tons of hydrogen use annually by 2030 (Source). Building economies of scale will drive down costs, as seen in the solar industry. For example, through aggressive scaling, China achieved over 70% of the global PV manufacturing capacity, reducing costs globally. (Source)
  Governments and private stakeholders must adopt similar scaling strategies for hydrogen energy by investing in large-scale production facilities and infrastructure. (Source)

Challenge remains, however, to balance public and private interest and investment to ensure that these announced targets are met in the given timelines.

1. Technological Advances
  Continued investment in R&D is critical to overcome the complexities of hydrogen technologies. NGHM announcements have been followed by the formation of empowered task forces to focus on different tenets of the mission. (Source)
  The development of more efficient electrolysers and safe storage solutions, such as advanced solid-state materials, could revolutionise the industry. The United States Department of Energy’s Hydrogen Shot Initiative, which aims to reduce green hydrogen costs to $1/kg by 2030, is an example of how ambitious technological targets can spur innovation. (Source)

There are several technologies available with their own value proposition in specific applications. (Source). It is essential to balance investment in more efficient future ready technologies and the ones that are currently available on a commercial scale.

Supportive Policies: The Role of Government

Government intervention is crucial in establishing the foundation for a successful hydrogen energy sector. Lessons from India’s post-independence economic policies illustrate how strategic nationalisation and later liberalisation fueled industrial growth. Similarly, governments must act decisively to ensure hydrogen energy reaches critical momentum quickly.

1. Aggregation of Demand and Central Agencies
  At current level of prices and technological awareness, the demand is only from small pockets of early adapters that are often fragmented. It is not economically efficient to serve these demands for private producers. Governments can stimulate demand by creating markets for hydrogen in transportation, industry, and power generation. Central agencies should coordinate large-scale projects by aggregating demand ensuring efficiency and risk-sharing among stakeholders. (Source)
2. Innovative contracting
  Innovative contracting methods can be deployed to mitigate the cost challenges with hydrogen technology. Long term purchase agreements, carbon credit linked purchase models, Opex models will allow expediting final investment decision at a price point that allow availability of working capital with the producers and rationalise the total cost of ownership for the purchasers.
3. Tax Incentives
  Tax incentives are the most efficient alternative to direct government funding. It allows the companies to converge to most promising solutions, establishing a suitable value chain of supply & demand. Tax breaks for hydrogen producers and subsidies for R&D projects can lower entry barriers and give the necessary push for private enterprises’ participation. (Source)
4. Funding
  Hydrogen projects often entail high risks – often perceived risks, due to lack of understanding- and long gestation periods. Governments can mitigate these challenges by offering financial incentives to banks and other financing institutions to provide loans for hydrogen-related projects. Risk management mechanisms, such as government-backed insurance schemes, can further reduce uncertainties and attract private investment. Consistent communication from government assuring commitment to hydrogen is necessary to retain interests of funding agencies, especially international agencies to invest in long gestation projects in the country.
  Countries like Australia have already committed $1.4 billion in funding to develop hydrogen hubs, serving as an example for others to follow. (Source)
5. Regulations
  Robust regulations are essential to address safety, efficiency, and interoperability challenges in hydrogen energy. Governments must establish standards for hydrogen production, storage, and transport to ensure safety while encouraging innovation. There are also startup fundings that can enable a greater growth opportunity for the industry. (Source) Additionally, creating markets for hydrogen, through mechanisms like renewable energy certificates or hydrogen credits, can incentivise adoption and promote competition.
6. Global Collaboration
  Mobilising global support is essential to fast-track hydrogen adoption. Hydrogen energy’s potential extends beyond borders, making international cooperation critical. Free trade agreements and specific bilateral agreements for focused technological and economic exchange could include hydrogen-specific chapters, encouraging technology transfer and financing. Initiatives like the Mission Innovation Hydrogen Valley Platform, which connects global hydrogen valleys, demonstrate how international cooperation can amplify results. (Source)

After independence, India nationalised key industries such as banking, insurance, and heavy manufacturing to ensure economic self-reliance, channel funds into critical sectors, and achieve minimum industrial momentum. However, inefficiencies in this model led to the economic reforms of 1991, which liberalised industries, encouraged private investment, and opened India’s markets globally. (Source)

For hydrogen energy, a similar strategy is essential but must be expedited. Initial government intervention—through infrastructure development, subsidies, and market creation—should establish momentum. Once stable, gradual liberalisation can enable private investment, innovation, and global competitiveness, ensuring rapid growth in response to the climate crisis.

Understanding the Differences Between Hydrogen and Solar Energy

While the solar and hydrogen industries share the goal of decarbonisation, their value chains, technological complexities, and public perceptions differ significantly:

- Value Chain: Solar energy relies on manufacturing PV cells and deploying them, while hydrogen demands a more intricate chain, including production, storage, transport, and end-use.
  Additionally, hydrogen production methods like electrolysis are energy-intensive, requiring renewable power to ensure true sustainability. The infrastructure for hydrogen distribution, such as pipelines and fueling stations, is still in its infancy, adding further challenges.

- Technological Complexity: Solar energy’s challenges were primarily cost-related, whereas hydrogen involves overcoming handling, storage, and distribution barriers amongst others.
  Innovations in electrolyser efficiency and the development of durable materials for storage tanks are critical to progress. Furthermore, hydrogen’s role across sectors—from transportation to heavy industry—means that technological advances must cater to diverse applications simultaneously.

- Public Perception: While solar energy is widely perceived as safe and sustainable, hydrogen faces misconceptions about its safety and viability, requiring robust education and awareness campaigns.
  Clear communication about the differences between hydrogen’s risks and benefits is essential to gaining widespread acceptance. (Source)

Prioritising Hydrogen Energy: The Time Is Now

Technology evolution and market creation is not a new phenomenon for Hydrogen. It is the standard organic formula for any new idea/concept/technology to establish its roots and become a way of life.

Making solar energy mainstream took over a decade, but we cannot afford the same timeline for hydrogen energy. The stakes are higher, the challenges more complex, and the clock is ticking. Urgent action is needed to support scaling, technological advancement, and policy support to ensure hydrogen energy becomes a cornerstone of our decarbonised future.

Learning from the lessons of the solar revolution and adapting them to hydrogen’s unique context, we can achieve faster, more impactful results. As the global fight against climate change intensifies, hydrogen energy must rise to the forefront—because waiting another decade is simply not an option.

The Rise of Green Hydrogen: Exploring the Costs, Applications, and Future

As the world grapples with growing concerns about climate change and the quest for sustainable energy, an innovative playbook of solutions combining solar, wind, geothermal, hydroelectric, nuclear, hydrogen and carbon capture is emerging with powerful and scalable alternatives to play a critical role in reducing our carbon footprint and transitioning to a cleaner energy future.

At GreenH Electrolysis, we are passionate about climate change and provide innovative solutions to tackle pressing environmental challenges.

When we refer to green hydrogen, we’re talking about hydrogen produced without any pollutant emissions, making it a truly sustainable energy vector or carrier.

Hydrogen is versatile and truly completes the sustainable solutions landscape as fuel for mobility, as a feedstock in hard-to-abate industries, and as a storage medium for intermittent renewable energy sources.

Read on to explore the rise of green hydrogen, its associated costs and applications, and the potential it holds for our future.

Understanding Green Hydrogen

Green hydrogen is created by splitting water into hydrogen and oxygen, using electricity from renewable sources like wind or solar power. This process, known as electrolysis, produces hydrogen without carbon emissions, referred to as the term “green hydrogen” or “renewable hydrogen”.

While the technical know-how of hydrogen as industrial feedstock has been around for decades, the urgent need to combat climate change and reduce greenhouse gas emissions has brought green hydrogen back into focus, on a broader sense, as an energy carrier. Countries and companies globally are now investing actively in green hydrogen technologies and infrastructure, recognizing its potential to transform the energy sector.

Game-Changing Electrolyser Technologies in the Green Hydrogen Market

Electrolysers are the devices that produce green hydrogen by splitting water into hydrogen and oxygen using electricity. Today, electrolysers based on different technologies are available for deployment at a scale ranging from few kW to several MWs depending on the requirement.  Here’s how the various types of electrolyser technologies are transforming the market:

Alkaline Electrolysers

Alkaline electrolysers are the oldest commercially available electrolysis technology, known for their cost-effectiveness. They use a 30-40% potassium hydroxide (KOH) solution as an electrolyte. These are the most deployed electrolysers to date and have reached a level of technological maturity that makes it most attractive in terms of initial capex requirement.

Their wide adoption and relatively low costs are driving significant advancements in hydrogen production. While efficient, this technology can cause component corrosion over time, leading to potential contamination from fine particles. Hydrogen purity in this process ranges from 99.5 to 99.9998%. (Source)
The footprint of Alkaline electrolysers is quite large at 5-10 m² / MW and also offers the lowest efficiency in the long term.

PEM (Polymer Electrolyte Membrane) Electrolysers

PEM electrolysers are known for their high efficiency and ability to operate at higher current densities compared to alkaline electrolysers. This technology uses a solid polymer electrolyte and is suitable for applications requiring quick responses to fluctuations in renewable energy sources. PEM electrolysers are advancing rapidly, offering more compact and efficient solutions for hydrogen production. Hydrogen purity in this technology ranges from 99.9 to 99.9999%. (Source)
PEM Electrolyser footprint is significantly lower at 3-6 m²/ MW making it amenable to modularized solutions.

SOEC (Solid Oxide Electrolyser Cell) Electrolysers

SOEC technology operates at high temperatures, utilizing a solid oxide electrolyte to achieve higher efficiency in hydrogen production. By leveraging heat, SOEC electrolysers reduce electrical energy requirements, making them a promising option for integrating with industrial processes and waste heat recovery systems. Their development is crucial for achieving high-efficiency hydrogen production.

SOEC technology is unique as it can also operate in reverse mode as a solid oxide fuel cell, enabling energy storage applications. 

Although this technology is expensive at the current stage of development & deployment, but given its high efficiency and very low dependence on rare earth materials, it has the potential to become a cost-effective solution in due course of time.

AEM (Anion Exchange Membrane) Electrolysers

AEM electrolysers are an emerging technology that combines the benefits of both alkaline and PEM electrolysers. They use an anion exchange membrane as the electrolyte, which allows for higher operational efficiency and lower costs. This technology is gaining attention for its potential to offer a balance between performance and affordability in green hydrogen production.

Each of these electrolyser technologies is contributing to the growth and evolution of the market, making green hydrogen more accessible and commercially viable.

The Cost of Green Hydrogen

Currently, the production cost of green hydrogen in India stands at approximately INR 300 (US$3.60) per kilogram. The majority of this cost (50-70%) is for round-the-clock renewable electricity, with the remaining 30-50% for electrolysers investment cost (CapEx). 

According to a report by the Institute for Energy Economics and Financial Analysis, the levelised cost of green hydrogen in India could drop by up to 40%. This reduction would be supported by incentives, low-cost renewable electricity, waivers on Inter-State Transmission System or ISTS open access, distribution and transmission charges, and a reduced GST (Goods and Services Tax) rate of 5% for hydrogen.

Factors affecting the cost:

Electricity Costs:

- Price of renewable energy (wind and solar)

- Choice between direct connection or grid-supplied power

- Regional differences and capacity factors

Electrolyser Costs:

- Type of electrolyser (alkaline, PEM, SOEC, AEM)

- Technology performance and future improvements

- Variability in projected costs

Capital Costs:

- Financing through equity and debt

- Additional costs due to offtake and technology risks

Regulatory Requirements:

- Alignment with renewable energy usage regulations

- Future impacts of hourly matching requirements for grid-connected PPAs

Note: (Power Purchase Agreement, a long-term contractual agreement between a buyer and a seller to purchase and sell the project’s energy at a fixed price, the energy being a renewable asset that is connected to the grid.) 

Applications of Green Hydrogen

Green hydrogen is gaining recognition for its versatility and potential to decarbonize multiple sectors. Here are key applications where green hydrogen is making a significant impact: 

1) Transportation:

Green hydrogen is a promising fuel for Road, Rail, Air, and Water modes of transport, producing zero greenhouse gas emissions.  

Hydrogen Fuel Cell Vehicles (FCVs): FCVs convert green hydrogen into electricity to power electric motors, offering long ranges and quick refuelling. Companies like Toyota, Honda, and Hyundai have introduced hydrogen FCVs. These FCVs only produce water vapour as tail-end emissions. 

Hydrogen-based Internal Combustion Engines (ICEs): Several automotive companies have demonstrated successful internal combustion engines based on hydrogen. Vehicles incorporating hydrogen-based ICEs promise to be cheaper than FCVs and battery-operated electric vehicles as well. This intermittent solution also allows an option that does not require a huge ICE-based industry to be decommissioned threatening existing investment and employment in these sectors. (Source)

Public Transport: Many cities are adopting green hydrogen-powered buses, which emit only water vapour and are quieter than diesel buses, being able to handle any kind of route and condition (hilly route, whole-day route, low and high temperatures). Hydrogen trains are also being developed for clean rail transportation, substituting diesel-driven lines.

Hydrogen Stations: Fueling stations for hydrogen vehicles are becoming more popular, making it easier for the public to refuel hydrogen-powered cars. 

2) Industrial Processes:

Green hydrogen helps reducing emissions in traditionally heavy-polluting sectors. 

Refining: Used to remove impurities from crude oil in processes like hydrocracking and hydrotreating. Green hydrogen can significantly lower the carbon footprint of refineries. 

Ammonia Production: It can replace traditional production methods in ammonia production, a major contributor to greenhouse gas emissions, making the fertilizer industry more sustainable. 

Steel Production: It serves as a clean and efficient reducing agent and as a fuel in iron and steel production, reducing emissions and promoting sustainability in this vital industry. 

3) Power Generation:

It is essential for renewable energy storage and enhancing power generation. 

Grid Balancing: It provides a flexible and reliable power source to manage sudden demand surges and balance fluctuations in renewable energy output. By storing excess energy generated during peak renewable production and releasing it during times of high demand, green hydrogen ensures a consistent and dependable energy supply, addressing the variability of solar and wind power systems.

Power Plants: Hydrogen combustion in gas turbines generates electricity, providing a dependable and low-emission power source. This technology enables power plants to produce electricity with minimal environmental impact. 

4) Residential and Commercial projects:

Green hydrogen use in domestic settings as a fuel and heat source is being promoted by various small scale innovation projects.

Hydrogen Boilers: These boilers work like traditional gas boilers but burn hydrogen to produce central heating and hot water. They emit only water vapor, making them an eco-friendly option for residential and commercial heating. 

The Future of Green Hydrogen

Green hydrogen has a bright future ahead, driven by several factors: 

Policy Support and Investments: Most governments across the world have recognized the promise of green hydrogen and are developing policies to attract investment in its production. For instance, launched on January 4, 2023, the National Green Hydrogen Mission has an allocated budget of INR 197,440 million through FY 2029-30. This initiative aims to support India’s objective of becoming self-reliant in clean energy and to inspire the global transition to clean energy. A key goal of the mission is to achieve an annual production of 5 million metric tonnes (MMT) of green hydrogen by FY 2029-30, reinforcing India’s commitment to clean energy leadership.

Technology: Significant advancements in electrolyser technology are driving progress in the green hydrogen sector. Innovations in electrolyser design and efficiency, enhance the production process, leading to greater accessibility and reduced costs for green hydrogen.

Collaboration: National collaboration for large-scale green hydrogen deployment is fait-accompli. Companies are entering into alliances and partnerships to share knowledge, technologies, and resources. This cooperation at the global level will help shape a robust green hydrogen economy. 

Decarbonization Goals: Growing pressure to address climate change and meet global carbon reduction targets is driving countries and companies to accelerate their transition to cleaner energy solutions. Green hydrogen, with its ability to significantly lower emissions across multiple sectors, has emerged as a key strategy for achieving decarbonisation goals. 

Eco-system of Green Hydrogen: In India, the green hydrogen market is gaining depth, with gradual progress being made. Emerging technologies, new companies, and government support are driving innovation and contributing to cost reductions, making green hydrogen increasingly commercially viable.

Challenges and Considerations

Though there exist huge possibilities for green hydrogen, several challenges must be overcome: 

Scale-up: Production of green hydrogen needs to get ramped up at a massive level to meet global demand. This involves billions of dollars of investment in building infrastructure and developing technology. When considering only the renewable energy capacity to power electrolysis processes, it would mean expanding by folds. 

Storage and Distribution: Effective storage and distribution of hydrogen will play a major role in the enhanced use of this fuel. Hydrogen is highly flammable, and therefore, greater precautions are taken. As such, safe and more cost-effective storage and transportation pathways in the marketplace should be developed. 

Solid, Promising Regulatory Frameworks: The establishment of robust, enabling regulatory frameworks is a key condition for the development of the green hydrogen sector. These cover standards related to handling and certification procedures, as well as incentives entailing adoption. 

Public Perception and Acceptance: For the successful execution of green hydrogen technologies, public awareness and acceptance are needed. Raising public awareness about the benefits of green hydrogen will aid in its diffusion.

Conclusion

Hydrogen is the first element in the periodic table and the building block of the very universe. The industrial revolution has already concretised the contribution of hydrogen in the key processes in the value chain.

Green hydrogen brings the opportunity to make these processes sustainable and amenable to the goal of a cleaner climate. As technology advances and costs decrease, green hydrogen offers a promising path for decarbonizing industrial processes, transportation, power generation, and heating. Embracing green hydrogen can enhance operational efficiency, meet regulatory requirements, and strengthen the resilience of your energy systems.  

By integrating green hydrogen, industries not only contribute to mitigating climate change but also position themselves as leaders in the transition to a sustainable, low-carbon economy. Investing in green hydrogen today is a strategic move towards a cleaner, more innovative future. 

Beyond Batteries: Why Green-hydrogen is the Hidden Gem of Clean Energy?

The search for sustainable energy alternatives has intensified in recent years due to the growing urgency to combat climate change and reduce reliance on fossil fuels. Green Hydrogen is the future fuel, emerging as a promising solution. In this blog post, we will explore the potential of Green Hydrogen, its benefits and challenges, and the role GreenH Electrolysis, as a leading manufacturer of PEM electrolysers in India, will play in advancing hydrogen technology as a sustainable energy solution.

What is Green Hydrogen?

Green hydrogen is hydrogen produced using renewable energy sources like wind, solar, or hydropower through a process called electrolysis. Electrolysis involves splitting water into hydrogen and oxygen using electricity. When this electricity comes from renewable sources, the hydrogen produced is considered “green” because it is entirely free of carbon emissions. This contrasts with “grey” hydrogen, produced from natural gas and associated with significant carbon dioxide emissions.
Green hydrogen is highly versatile. It can be stored as a gas or liquid, transported easily, and used in various applications, making it a valuable tool in the shift towards a sustainable energy system.

The Environmental Benefits of Green Hydrogen

One of the most significant advantages of Green Hydrogen is its potential to reduce greenhouse gas emissions. Green Hydrogen produces only water vapour as a by-product when used as a fuel, making it an attractive alternative to fossil fuels. According to a 2022 report by the International Energy Agency (IEA), switching to green hydrogen in sectors like transportation, industry, and power generation could reduce global CO2 emissions by up to 6 gigatonnes annually by 2050.

Green hydrogen offers an unparalleled sustainable solution to complement renewable energy installation and help balance electricity grids by storing excess renewable energy. During low grid demand and high renewable energy output, the surplus renewable energy can be used to produce hydrogen. This hydrogen can later be converted back into electricity when grid demand is higher than the direct renewable energy output or used in other applications, providing a flexible energy storage solution.

GreenH Electrolysis is a crucial player in making this process more efficient and scalable, ensuring a stable supply of clean energy.

Why Batteries Aren’t Enough for a Clean Energy Future

Batteries, particularly lithium-ion batteries, have been widely adopted for energy storage and powering electric vehicles. However, they have limitations that make them less suitable for some applications:

Limited Energy Storage Capacity: Batteries are excellent for short-term energy storage but are not efficient for long-term storage due to energy loss over time and capacity degradation. Green hydrogen, however, can be stored for longer periods of time without significant energy loss, making it a better option for storing energy generated by renewables for extended periods.
Energy Density Issues: Battery technology has improved significantly in the past few years, making it a viable solution for smaller, low-range vehicles. This has resulted in the wide adoption of battery-electric vehicles for two-wheelers, three-wheelers and four-wheelers traditionally plying within city boundaries. However, batteries remain an unviable solution for long-range vehicles. Air and ocean transport are also outside the purview of current battery technology because of weight, energy density and capacity degradation issues. Hydrogen offers significantly higher energy density compared to batteries, making it far more suitable for energy-intensive applications like long-haul trucking, shipping, and aviation. With the highest calorific value among common fuels—up to 142 kJ/g—hydrogen contains approximately three times the energy of petroleum and 4.5 times that of coal. If utilized in a hydrogen-based battery, it could achieve an energy density of around 40 kWh/kg, vastly outperforming the typical lithium-ion battery’s 0.25 kWh/kg and even fuel oil’s 12 kWh/kg. This exceptional energy density enables hydrogen to store more energy per kilogram, a critical advantage for heavy-duty and long-distance transport solutions.(Source)

Raw Material Limitations: Manufacturing batteries is a complex chemical process requiring specific raw materials like Lithium, Cobalt, Nickel & Graphite. The extraction and processing of these raw materials have significant environmental impacts due to mining and refining processes. The availability of these raw materials is not uniform across the globe and mining and processing are concentrated in certain countries which exposes the production to geopolitical risks. Exploration and production of new mines is an expensive and lengthy process. (Source)
Green hydrogen production in contrast relies mainly on water and renewable electricity, offering a more sustainable and scalable solution.

Recycling: Battery recycling is an important step contributing to the long-term viability of battery solution for decarbonisation. This helps limiting the negative externalities like end of life landfill burden, mining of natural resources and the greenhouse gases emitted during the process. Battery recycling itself, however, faces significant challenges. It is an expensive process with insufficient guidelines for safe handling. Also, different kinds of batteries require different recycling processes which further limits the scale, costs and efficiency of recycling Whereas, recycling materials like platinum and other rare metals used in electrolysers is easier due to well-established recovery processes, as well as a higher recovery rate for these metals.

The Unique Advantages of Green Hydrogen Alternative to Batteries

Green hydrogen provides several unique benefits that make it a valuable addition to the clean energy mix:

1. Decarbonizing Hard-to-Electrify Sectors of Transportation

In transportation, hydrogen fuel cells are ideal for heavy-duty vehicles like trucks, buses, and ships, where battery electric solutions face limitations due to low energy density, driving range and refueling time. Hydrogen-powered trains are already operating in Germany and Japan, and companies like Toyota and Hyundai are developing hydrogen fuel cell vehicles to meet the needs of longer-range and heavy-duty transportation.

India also has taken long strides in the direction of hydrogen-based transport. India’s first hydrogen fuel cell bus was launched in September 2023, by India’s Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri.

Indian Railways has joined the league of nations that has announced hydrogen trains. GreenH is responsible for the hydrogen production and refuelling station for the first hydrogen train in India.

2. Long-Term Energy Storage and Grid Stability

Renewable energy sources like wind and solar are inherently intermittent, meaning their output fluctuates depending on weather conditions and time of day. This variability creates a need for storage solutions that can capture excess energy during periods of high production and release it when demand is greater or generation is low. While batteries are effective for short-term storage, they lose efficiency over time. Green hydrogen, on the other hand, can be stored for extended periods without significant energy loss, making it a dependable choice for long-term energy storage.

By producing green hydrogen during times of surplus renewable energy, it can be stored and later utilized to balance the grid, ensuring a steady and reliable energy supply. This capability is particularly vital for countries striving to increase the share of renewable energy in their power grids.

3. Enabling Energy Export and Reducing Dependence on Fossil Fuels

Countries with abundant renewable energy resources, such as Australia, Chile, and Saudi Arabia, view green hydrogen as an opportunity to export energy. Green hydrogen can be produced locally using renewable resources and then exported to countries that lack such resources, creating a new global energy trade and reducing dependence on fossil fuels.

This also enables decentralized energy production, where communities can generate and store their own energy independently of the central grid. This could enhance energy security, reduce transmission losses, and promote local economic development.

4. Life Cycle Emissions

Although both battery electric vehicles (BEV) and Fuel cell electric vehicles (FCEV) are considered zero emissions vehicle, fuel cell electric vehicles fare considerably better in terms of emissions calculated over the complete life cycle of raw material extraction to end-of-life disposal. (Source)

Green Hydrogen and Batteries: A Powerful Combination

Rather than competing with batteries, green hydrogen should be viewed as a complementary technology in the clean energy landscape. Batteries are great for short-term energy storage and light-duty applications, while green hydrogen excels in long-term storage and heavy-duty sectors that batteries can’t easily reach.

GreenH Electrolysis is advancing green hydrogen technology by developing efficient and cost-effective electrolysers. These innovations are crucial for reducing the costs associated with green hydrogen production and expanding its use across various sectors.

Conclusion

Green hydrogen is indeed a key element of clean energy, offering solutions to some of the most challenging aspects of the energy transition. With its ability to decarbonize hard-to-electrify sectors, provide long-term energy storage, and support grid stability, green hydrogen is set to play a critical role in our sustainable energy future. As technology advances, costs fall, and infrastructure develops, green hydrogen will become increasingly important in achieving global climate goals.
By understanding the unique advantages of green hydrogen and supporting its development, we can build a more robust and versatile clean energy system that meets the needs of a sustainable future. For more insights into renewable energy technologies and their potential impacts, explore our other blog posts on this topic.

Green Hydrogen: A Viable and Sustainable Alternative

What is Green Hydrogen?

Green Hydrogen is produced using renewable energy sources, like wind, solar, and hydroelectric power. Unlike traditional hydrogen production methods that rely on natural gas and emit significant amounts of carbon dioxide (CO2), Green Hydrogen is generated through a process called electrolysis, which uses electricity to split water into hydrogen and oxygen. Hydrogen produced using renewable energy is referred to as “Green Hydrogen”.

In 2023, the global hydrogen production reached 97 MT of which only 1% accounted for low emission hydrogen. Based on estimates of globally announced projects, low- emission hydrogen could reach 49 MTPA By 2030.

However, achieving this target will require concerted efforts by several stakeholders as taking an announced project to the FID stage is a long and arduous journey due to several factors which are being discussed in this blog.

The Environmental Benefits of Green Hydrogen

GreenH Electrolysis is a crucial player in making this process more efficient and scalable, ensuring a stable supply of clean energy.

The Economic Viability of Green Hydrogen

The environmental benefits of green hydrogen are undeniable, and its economic viability is improving rapidly. Currently, the cost of producing Green Hydrogen is significantly higher than that of conventional hydrogen due to the high price of electrolysers and the need for large amounts of renewable electricity. In 2023, the cost of Green Hydrogen production averaged around $5 to $6 per kilogram, compared to $1 to $2 per kilogram for grey hydrogen.

GreenH Electrolysis is at the forefront of efforts to make green hydrogen economically viable. By advancing PEM electrolyser technology and driving down production costs, GreenH Electrolysis is making green hydrogen competitive with conventional hydrogen. The Hydrogen Council projects that with continued investment and technological improvements, the cost of green hydrogen could fall by up to 50% by 2030. GreenH Electrolysis is making significant strides in improving electrolyser efficiency and scaling up production, both of which are critical to achieving this cost reduction.

Challenges in Adopting Green Hydrogen

Despite its potential, several challenges hinder the widespread adoption of green hydrogen. The primary challenges of this being-

High Costs of Technology- Current methods for producing green hydrogen are expensive; achieving cost parity with traditional methods requires significant advancements. Subsidies and incentives along with investment in research and development is required for achieving this cost parity with conventional methods.
Lack of Infrastructure- There is a lack of necessary infrastructure for the effective transport and storage, hindering widespread adoption. Also, upgrading the existing power grid to accommodate renewable energy sources is crucial for a successful hydrogen economy. Government and private stakeholders have started to invest heavily in developing and upgrading the current infrastructure.
Regulatory and Policy Framework- The current regulatory environment may not fully support the deployment of new energy technologies, creating uncertainty for investors. A clear and comprehensive policy framework is needed to guide investments and incentivize technological advancements in Green Hydrogen.
Technical Expertise and Human Resources- There is a notable shortage of skilled labor to operate and maintain advanced technologies like hydrogen production systems, necessitating targeted training programs.

These factors make the journey of setting up green hydrogen plants a long and arduous. Several projects are not even able to reach FID.

Potential Applications of Green Hydrogen

Green Hydrogen is a versatile solution for various sectors that are difficult to decarbonize using other technologies. In the transportation sector, hydrogen fuel cells can power vehicles with longer ranges and shorter refueling times than battery electric vehicles, making them suitable for heavy-duty trucks, buses, and trains. Several initiatives are taken in cities like Aberdeen, Scotland, and Tokyo, Japan, demonstrating their viability in public transportation.

In India GreenH Electrolysis has partnered with Medha Servo Drives to build the first Hydrogen production and refueling station in Jind, Haryana, for the Indian Railways’ pioneering “Hydrogen for Heritage” initiative. The facility will produce 420 kg of hydrogen daily and include comprehensive refueling infrastructure, marking a significant step towards sustainable rail transport in India.

In the industrial sector, hydrogen can replace carbon-intensive processes, such as steelmaking and chemical production. Companies like ArcelorMittal and Thyssenkrupp are exploring hydrogen-based methods to produce steel without coal, significantly reducing emissions. GreenH Electrolysis’s PEM electrolysers are ideally suited for these applications, providing a reliable source of Green Hydrogen that can be scaled up as demand grows.

The Future of Green Hydrogen

The future of Green Hydrogen depends on overcoming current challenges and scaling up production and infrastructure. Support from the Government and International organizations is crucial for making green hydrogen a viable alternative.

In this effort the European Union’s Hydrogen Strategy, for example, aims to install at least 40 gigawatts of Green Hydrogen electrolysers by 2030, and they plan on producing and importing up to 10 MMTPA by 2030.

In India, the National Green Hydrogen has been announced which aims to increase the production of Green Hydrogen to 5 MMTPA by the year 2030.

To make Green Hydrogen a viable option, aligned with NGHM, GreenH Electrolysis continues to innovate and aims to expand its offerings by focusing on efficiency, scalability, and integration.

Conclusion

Green Hydrogen holds great promise as a sustainable and versatile energy carrier. Its potential to significantly reduce greenhouse gas emissions and support the transition to a clean energy future is undeniable. Realizing this potential requires substantial investment, technological advancements, and supportive policies. GreenH Electrolysis is at the forefront of this effort, driving innovation and providing the tools needed to build a sustainable hydrogen economy. As we continue to explore Green Hydrogen as a viable alternative, it is crucial to address the challenges and leverage the opportunities presented by this emerging technology. For more insights into renewable energy and sustainability, explore our other blogs on the topic.

By addressing the challenges associated with Green Hydrogen and partnering with industry leaders, we can forge a path toward a cleaner, greener, and more sustainable future. This, in turn, will bolster the transition to sustainable energy alternatives faster.

Hydrogen Refueling Stations: A Key Step in India’s Green Hydrogen Revolution

India is at the cusp of an energy revolution. As the world shifts away from fossil fuels to cleaner, renewable energy sources, hydrogen, particularly green hydrogen, is emerging as a cornerstone of this transformation. With the country’s ambitious targets under the National Green Hydrogen Mission, the development of hydrogen refueling stations (HRS) is gaining momentum. These stations play a pivotal role in establishing the hydrogen economy, serving as essential infrastructure to support hydrogen-powered vehicles and the broader application of hydrogen in industries.

The Role of Hydrogen in India’s Clean Energy Journey

Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable electricity, is considered one of the cleanest energy carriers. It offers a promising alternative to reducing carbon emissions across transportation, steel, cement, and power generation industries.

India’s National Green Hydrogen Mission aims to:

Achieve 5 million metric tonnes (MMT) of green hydrogen production capacity annually by 2030.
Attract investments worth ₹8 lakh crore.
Create over 600,000 jobs.
Reduce reliance on imported fossil fuels.
Position India as a global leader in green hydrogen production and exports.

As hydrogen fuel cell vehicles (FCVs) and hydrogen-powered industries gain traction, refueling stations are critical to ensuring smooth operations and creating a viable hydrogen ecosystem.

Hydrogen Refueling Stations: The Foundation of the Ecosystem

Hydrogen refuelling stations are the backbone of a hydrogen-powered future. These stations supply hydrogen fuel for vehicles like cars, buses, and trucks equipped with fuel cell technology. Unlike electric vehicles that take time to charge, hydrogen vehicles can refuel in just a few minutes, offering a practical and efficient solution for long-distance travel and heavy-duty transport.

Key Components of Hydrogen Refueling Stations

Hydrogen Storage Tanks: Store compressed hydrogen gas or cryogenic liquid hydrogen.
Compressors: Compress hydrogen to the pressure required for refuelling vehicles (typically 350 or 700 bar).
Dispensers: Deliver hydrogen to vehicles with safety mechanisms in place.
Electrolysis Systems (for on-site production): Generate green hydrogen using renewable energy.

Hydrogen refueling stations can either source hydrogen from centralised production plants or produce it on-site using water electrolysis and renewable power.

India’s First Hydrogen Refueling Station: A Milestone in Ladakh

In November 2024, India inaugurated its first green hydrogen refuelling station in Leh, Ladakh. Developed by Amara Raja Infra for NTPC Ltd., this station is a benchmark for hydrogen infrastructure in the country. It produces 80 kilograms of green hydrogen daily, supporting the operation of five hydrogen-powered buses in the region.

Why Ladakh?

Ladakh’s cold climate and challenging terrain made it an ideal location to test the feasibility of hydrogen fuel. The project’s success demonstrates hydrogen’s potential in remote and high-altitude areas, paving the way for similar infrastructure in other parts of India.

The Need for Hydrogen Refueling Stations in India

While hydrogen-powered solutions are gaining traction worldwide, the availability of refuelling infrastructure is still a bottleneck. India’s efforts to build hydrogen refuelling stations are vital for several reasons:

1. Decarbonising the Transport Sector

India’s transport sector accounts for nearly 10% of total greenhouse gas emissions. With an increasing demand for cleaner mobility solutions, hydrogen fuel cell vehicles (FCVs) offer an alternative to internal combustion engines and even electric vehicles in some cases.

2. Facilitating Heavy-Duty Transport

While battery-powered electric vehicles are suitable for personal use and light-duty transport, hydrogen-powered trucks, buses, and trains are better suited for long-range, high-load operations. Hydrogen refuelling stations enable the deployment of such vehicles across freight and public transportation.

3. Achieving Energy Independence

India is the world’s third-largest importer of crude oil. Transitioning to green hydrogen can reduce the country’s dependence on imported energy while utilising its vast renewable energy potential to produce hydrogen domestically.

4. Boosting the Hydrogen Economy

A network of hydrogen refuelling stations will drive demand for green hydrogen, creating opportunities for producers, manufacturers, and innovators in the hydrogen value chain.

Global and Indian Efforts: Building a Hydrogen Network

Global Leaders in Hydrogen Refueling Infrastructure

Countries like Japan, Germany, and South Korea have made significant strides in hydrogen infrastructure.

Japan: Over 160 hydrogen refuelling stations as part of its strategy to support hydrogen FCVs and industrial applications.
Germany: Aiming for 400 hydrogen refueling stations by 2025 under the National Hydrogen Strategy.
South Korea: Plans to establish over 310 stations by 2025, with heavy investments in hydrogen-powered buses and trucks.

India’s Progress

While India’s hydrogen infrastructure is in its infancy, the following developments mark progress:

National Hydrogen Energy Roadmap: Policy incentives and support for hydrogen refuelling stations and fuel cell vehicles.
NTPC Initiatives: The Ladakh refuelling station and hydrogen buses are early examples of hydrogen adoption.
State-Level Projects: Gujarat, Maharashtra, and Tamil Nadu are actively exploring green hydrogen hubs.

Challenges in Developing Hydrogen Refueling Stations

Despite the promise, several challenges remain:

High Initial Costs: Setting up a single hydrogen refuelling station can cost between ₹10-20 crore. Scaling infrastructure requires significant investments.
Hydrogen Storage and Safety: Storing and transporting hydrogen safely is a technical challenge due to its high flammability and low density.
Lack of Demand: The limited number of hydrogen fuel cell vehicles in India creates a chicken-and-egg situation for infrastructure development.
Renewable Energy Integration: Producing green hydrogen requires consistent access to renewable energy, which may not be feasible in all regions.

Solutions and the Path Forward

Public-Private Partnerships (PPPs)

Collaboration between government and private players can pool resources and expertise to establish hydrogen refuelling stations.

Incentives and Subsidies

Government subsidies and incentives for refuelling station operators and FCV buyers can boost adoption and investments.

Focus on Industrial Hubs

Starting with refuelling infrastructure in industrial hubs can generate demand while supporting hydrogen-powered transport for commercial operations.

Advancements in Technology

Research into cost-effective storage solutions, hydrogen carriers like ammonia, and advanced electrolysers can reduce production and refuelling costs.

The Future of Hydrogen Refueling Stations in India

India is on the brink of a green hydrogen revolution, and hydrogen refuelling stations are a critical piece of the puzzle. By investing in infrastructure and fostering innovation, India can create a resilient hydrogen economy that addresses energy security, climate change, and economic development.

While challenges remain, the country’s commitment to clean energy and the strategic role of hydrogen ensure a bright future. As hydrogen refuelling stations expand, they will not only support transportation but also enable industrial and commercial applications, propelling India toward its goal of becoming a global leader in green hydrogen.

Hydrogen Production & Hydrogen Refueling Station at Jind, Haryana

Using Hydrogen as fuel provides more significant benefits in the direction of green transportation technology to support zero carbon emission goals as a clean energy source.

Indian Railways will introduce its first hydrogen train aligning with National Hydrogen mission to position India as a global hub for Green Hydrogen production and export. Indian Railways plans to launch about 50 such trains by 2047. The 1^st Hydrogen train will operate on the Jind-Sonipat section covering a total of 360kms daily vide 2 round trips. The train will be fuel by India’s largest Hydrogen Refueling station at Jind near to the Railway station.

This initiative is part of a broader effort to enhance the sustainability and efficiency of the national transporter. This move is part of Indian Railways’ broader strategy to reduce its carbon footprint and integrate clean energy solutions into its operations.

A. Project Stakeholders:

Northern Railways: Owner of the Project.
Medha Servo Drives Pvt. Ltd., Hyderabad: Northern Railways has awarded to Medha this pilot project for the retrofitment of a Hydrogen Fuel cell on an existing Diesel Electric Multiple Unit (DEMU) rake along with ground infrastructure which is planned to be run on the Jind-Sonipat section of the Northern Railway. Medha entrusted GreenH Electrolysis Pvt. Ltd. the contract to provide the Engineering, Procurement, and Construction (“EPC”) of a Hydrogen production and refuelling station for this important and ground-breaking project.

GreenH Electrolysis Pvt. Lt, Gurgaon: OEM in PEM Electrolyser technology, a JV company of H2B2 Electrolysis Technologies, Spain. Project scope includes complete Hydrogen Production and Hydrogen Refueling station EPC, integration, interconnection, construction, commissioning, and testing. Scope also includes 5years Long Term Service Agreement (LTSA) with production guarantees and plant availability to Indian Railways.

B. Project Particulars:

Electrolyser:

1MW PEM Electrolyser producing 430kg/day Hydrogen at 40bar and 99.999% purity suitable for use in Fuel Cell Hydrogen tra Containerised solution suitable for ambient -5deg.C to +55deg.C
Electrolyser manufactured by GreenH Electrolysis Pvt. Ltd. at Jhajjar, Haryana with support from its parent H2B2 Electrolysis Solutions, Spain.
Produces approx. 430kg/day hydrogen, enough to fuel the Hydrogen train to run more than 400kms per day.

2. Compressor:

Diaphragm compressor, compressing from 40bar to 500bar. Accompanied by buffer vessel to stabilize the ﬂow. Compressor is in a containerised solution with a main block imported from USA and assembly of the compressor carried out in India.

3. Dispenser:

H35 Dispenser with TK16 nozzle and infrared communication. Accompanied by T20 chiller. Dispensing 210kg/hr with average ﬂow rate of 3.6kg/min.
Dispenser allocated for each DPC (driving power car) and dispensers are located 210m away.
Simultaneous ﬁlling into train dispensing total 420kg in 1hour to 2nos. of DPC.
Dispenser is manufactured in India following all PESO approvals.

4. Storage:

Total 3000kgs storage is envisaged which is by far the largest on-ground Hydrogen storage in India.
3000s kgs is split into Type-I and Type-IV storage.
Approx. 2300kgs stored in Type-I steel cylinders at 200bar, which is utilized as a back-up storage. This storage is protected with a 3mtra high fire protection concrete wall.
Balance 700kgs is stored in Type-IV composite cylinders at 500barg used for daily purpose filling. Type-IV cylinders are better suited for high pressure storage and used for continuous refueling. Being composite cylinders, embrittlement issues are negated. These are again split in 2 parts catering to each dispenser.

C. Challenges faced:

Longest train with 2 dispensers located 210 mtrs away.
Filling both coaches at same time within same time limit
1st time approval of 500bar Type-IV cylinders
Largest on ground high pressure Hydrogen storage of 3000kgs
Complicated fueling protocol

D. Mitigation plans:

Comprehensive planning to get the approval of Type-IV 500bar cylinders by PESO. Lots of documentations, design approvals, drawing reviews, factory visits, final acceptance tests etc. are carried out timely for a smooth execution of the project.
Developing multiple fueling simulations, and devising the most complex and accurate fueling simulation, employing Tk16 nozzle with infrared communication ensuring Hydrogen temperatures inside the train cylinders within prescribed limits.
Employing trench hydrogen piping and cabling with protective fencing all around the 210m length prohibiting invasions and for a safer plant operation.

The execution of this groundbreaking project is ongoing and in full swing by GreenH Electrolysis Pvt. Ltd. which post commissioning in this year 2024, will pave the way and set an example for many such Hydrogen projects in India. India’s 1st Hydrogen train set project is of national importance and heralds a new era for the Indian Railways. This ambitious project signifies India’s commitment towards a cleaner and greener future.

Path to Green Hydrogen: Key trends, challenges and solutions

Hydrogen is extremely versatile and allows for multiple applications. It can be utilised as feedstock; or as a replacement for fossil fuels in industries, gas energy, power generation and transportation. However, the existing fossil-fuel-based hydrogen production has a significant carbon footprint, and so the world wants to shift to green hydrogen. Simply put, green hydrogen is produced when one uses water as a raw material to produce hydrogen, using a process called electrolysis, while using renewable electricity as a source of energy.

While solar and wind energy generation has been taking place for years, green hydrogen has started gaining prominence only in recent years. Green hydrogen has the potential to decarbonise several sectors, especially the ones that are difficult to decarbonise, such as the steel industry, power generation, fertiliser production and transportation. According to Deloitte, green hydrogen is expected to hold an 85 per cent market share by 2050.

The National Green Hydrogen Mission, aimed at making India a global hub for the production, use and export of green hydrogen and its derivatives, was announced early this year with an outlay of Rs 197.44 billion from 2023-24 to 2029-30. This signals India’s intention to leave no stone unturned in becoming energy independent by 2047 and achieving net zero by 2070.

The Ministry of New and Renewable Energy recently unveiled the research and development roadmap for the National Green Hydrogen Mission and committed investments worth Rs 4 billion towards creating a research ecosystem that will focus on the development of materials, technologies and infrastructure to enhance the efficiency, reliability and cost-effectiveness of green hydrogen production, storage, transport and distribution. This step is very encouraging for the industry.

Business models

As the market for green hydrogen is just beginning to shape up, several new technologies are being experimented with. Both new and established players are entering the fray, and several companies are trying both forward (such as utility-scale renewable energy players) and backward (large industrial conglomerates such as Reliance and Adani) integration, while several government institutions and utilities are trying to either become consumers or producers of green hydrogen. If we dig deeper, we can clearly see three main business models for green hydrogen:

Production: Companies are setting up facilities that will use renewable energy to produce green hydrogen. This green hydrogen can be directly sold to end-users, or used to produce other derivatives (such as synthetic fuels).
Transport and storage: Companies are working non-stop to develop and institute new and innovative technologies to transport and store green hydrogen. This includes the setting up of new gas pipelines dedicated to the transport and distribution of such gas, as well as liquid hydrogen carriers (such as liquid organic hydrogen carriers, ammonia and methanol).
End-use applications: New technologies and innovations are taking centre stage when it comes to the use of green hydrogen as either fuel or feedstock, including fuel cell vehicles, hydrogen boilers and hydrogen turbines.

Challenges

The green hydrogen market in India is at an inflection point, and has the potential to grow rapidly. According to a report jointly produced by NITI Aayog and the Rocky Mountain Institute, hydrogen demand in India is expected to increase fourfold by 2050, with the steel industry and heavy-duty transportation driving 52 per cent of the demand. However, several challenges remain, which need to be addressed for India to become a leader in the green hydrogen space:

High cost of production: The cost of producing green hydrogen is much higher than that of producing fossil-fuel-based hydrogen. However, as we have seen in the case of solar and wind energy, the costs will come down as the technology matures and scales up.
Lack of infrastructure: A key challenge that producers of green hydrogen face is the lack of infrastructure required for its transport, distribution and storage. It is extremely important that we address this before green hydrogen becomes widely used.
Awareness and acceptance: Despite a lot of publicity around green hydrogen, currently there is low awareness regarding its benefits. If we want green hydrogen to garner traction and acceptance, initiatives to educate corporates and individuals on its long-term benefits vis-à-vis decarbonisation need to be undertaken.

Mitigation of challenges

Every new beginning has its challenges, but with proper planning and resources, they can be overcome. In the last decade, India has demonstrated great determination, meticulous planning, flexible and agile policymaking, and entrepreneurial initiative to achieve tremendous growth in renewable energy. We need this to be replicated for green hydrogen.

Access to affordable finance: The Government of India has set itself an ambitious target of producing 5 million metric tonnes of green hydrogen annually by 2030. For this to fructify, significant investments will be needed from both the public and private sectors in green hydrogen production facilities, transport and storage infrastructure, as well as end-user applications. The cost of capital in the initial stages, when the market is being established, will be significantly high, especially for projects in emerging markets such as India. The availability of affordable finance will be a key requirement for this industry to flourish.
Interregional exchanges: Landlocked regions are left with little choice but to set up interregional exchanges for the trading of green hydrogen. When it comes to fulfilling the demand for green hydrogen with competitive pricing, developing, industrialised and densely populated countries are solely dependent on imports. According to Deloitte, by 2050, the annual gains from global trade could rise to as high as 25 per cent of the total market value, ranging between $180 and $350 billion. This was calculated by contrasting an alternative scenario where leading countries underinvest in transport infrastructure while adopting a protectionist mindset, resulting in four times lower global trade volumes.
Infrastructure: The development of necessary infrastructure with sufficient lead time is essential for both the production and use of green hydrogen and its derivatives. For any project to be successful, early planning, and rapid creation of transport and storage infrastructure will be crucial. This infrastructure planning should include the use of smart models to compensate for the risks expected during market ramp-up, due to the temporary underutilisation of such infrastructure.
Contractual and market infrastructure: The development of contractual and market infrastructure, such as hedging products, future markets, trading platforms and spot markets, is a critical prerequisite to creating a viable, lasting business model. The market for green hydrogen can leverage existing conventional commodity markets, and this infrastructure can be used when support is needed to account for specificities such as certification.

India-specific suggestions

Now let us also look at what India needs to do next, to overcome existing challenges and increase the rate of adoption of green hydrogen as a primary source of renewable energy.

Enhance green hydrogen production capabilities: Given its abundant renewable energy resources, India has the potential to become a major producer of green hydrogen. However, this will require significant support from the government in the form of financial incentives and policy changes.
Invest in green hydrogen infrastructure: Creating a robust infrastructure ecosystem for the transport and storage of green hydrogen is critical to making green hydrogen more widely available, accessible and affordable.
Promote the adoption of green hydrogen: To increase the adoption of green hydrogen, the government should provide subsidies for green hydrogen vehicles and end-user equipment, or develop public-private partnerships to support green hydrogen projects.

Benefits

If India achieves its green hydrogen goals, in addition to decarbonising the industry and achieving net-zero targets, it will result in significant additional benefits for the country:

Creation of jobs: Data trends show that the adoption of green hydrogen will lead to the creation of over 600,000 jobs.
Export of green hydrogen: With the abundance of renewable energy resources and a large domestic market, India is well poised to become a major producer and exporter of green hydrogen.
Energy security: Adoption and usage of green hydrogen will go a long way in reducing India’s dependence on expensive imported fossil fuels.

The government has recognised green hydrogen as a catalyst for achieving its net-zero targets, and is providing financial incentives to support the development of the industry. It is also working to create a more conducive regulatory framework for the industry. By addressing the existing challenges, India has the potential to become a global leader in the green hydrogen space due to its abundant renewable energy resources and progressive-thinking government. And while there is a lot that needs to be achieved, the future looks extremely promising.

Dhiman Roy, Chief Executive Officer and Director, GreenH Electrolysis Private Limited