Energetica India Magazine October-November 2021

HYDROGEN hydrogen would not only replace the carbon-intensive natu- ral gas-based ammonia but can also serve as the store and carrier of hydrogen which is further fraught with disruptive implications for nitrogen fertilizer industry. Similarly, methanol which is mainly made from methane, a major greenhouse gas, and is used for several items of everyday use such as plas - tics, paints, auto parts and construction materials -- can also be made from green hydrogen. Importantly, methanol is also a clean source of energy for transport. It is important to note that certain sectors such as long-distance trucking, concrete and steel manufacturing, shipping and aviation necessarily re - quire high energy density fuel, and are therefore difficult to be decoupled from fossil fuels. Green hydrogen could serve as an option for these sectors. In fact, long distance trucking is one of the most cost-effective ways of popularizing hydrogen fueling as compared to passenger vehicles which require a much larger fueling infrastructure investment across the cities. Whereas, to serve long distance trucking, hydrogen fueling stations can have a sparser population only along major high - ways. With heavy-duty transport market set to expand in a big way in the coming years in India, this is a potential sector for green hydrogen consumption. Notably, hydrogen dispenses into the vehicles as regular gaseous fuel like CNG and as a result hydrogen fuel cell vehicles (FCEVs) can be refilled nearly as fast as gasoline vehicles as against the well over 90 minutes to 8 hours required for battery-driven electric vehicles. Green hydrogen when blended with natural gas can also be stored in existing gas pipelines to power household appliances. Pathways for green hydrogen: staying ahead of the tech- nology curve is the key In view of the relatively nascent nature of green hydrogen (as opposed to carbon-intensive natural gas-based grey hy - drogen) as a resource coupled with the issues of substantial technology acquisition and implementation costs at present, bringing down the costs of green hydrogen technologies and equipment must become the foremost priority for policymak - ers. And this can only be done by way of enhanced investment and scaling up through policy support for technologies relat - ed to the production, transportation, storage and use of green hydrogen. Both supply and demand-side policies including subsidies and tax incentives are required to propel a greater deployment and diffusion of green hydrogen technologies on the ground. Just as deployment and scaling up of plants and technologies for batteries, solar, onshore wind and offshore wind brought down their costs substantially between 2010 and 2018 – by 84%, 87%, 47% and 32% respectively – there is no reason why a similar accomplishment can’t be made for green hydrogen. It must be remembered that one of the first large scale alkaline electrolyser facilities in the world produc - ing hydrogen from electricity was set up at Nangal way back in 1962. Although most experts are somewhat sceptic on the immediate feasibility of Carbon capture, utilization and storage (CCUs) technology in India, a step can definitely be taken to - wards ramping up of water electrolysis technology capacities. In addition, pairing of renewable power plants with electroly - sers and local hydrogen storage can also be explored. The global tailwinds for green hydrogen On a global level, investment in green hydrogen production is set to touch upwards of $1 billion a year by 2023 itself. On the back of booming investment, the prices of electrolysers have dipped by 50% last five years. In another estimate by IHS Markit, in the last five-six years, the production costs of green hydrogen have plunged by 40% and are expected to fall by a further 40% through 2025. India needs to capitalize on these global trends. Therefore, with the rising share of renewables, the relatively costly natural gas, the emergence of one of the lowest renew - able electricity tariff regimes in the world and hosting of an extensive gas pipeline network, the country is already well placed to pursue an ambitious green hydrogen agenda. A suitable policy stimulus with a coherent roadmap for the fu - ture with an eye on integrating with the emerging global value chain is the need of the hour. The National Hydrogen Mission announced by the Government of India this year indicates that there is conviction and faith in this technology at the highest levels of government. 1. https://news.climate.columbia.edu/2021/01/07/need-green-hydrogen/ 2. http://www.mospi.nic.in/sites/default/files/reports_and_publication/ES/Energy%20Statistics%20India%202021.pdf 3. http://www.mospi.nic.in/sites/default/files/reports_and_publication/ES/Energy%20Statistics%20India%202021.pdf 4. https://www.spglobal.com/ratings/en/research/articles/210422-the-hydrogen-economy-green-hydrogen-may-transform-the-fertilizer-industry-11904543 5. https://www.methanol.org/ 6. https://www.teriin.org/sites/default/files/2020-06/Hydrogen-Policy-Brief.pdf 7. https://www.teriin.org/sites/default/files/2020-06/Hydrogen-Policy-Brief.pdf 8. https://www.process-worldwide.com/green-hydrogen-is-the-future-a-1005639/ 9. https://www.forbes.com/sites/mikescott/2020/12/14/green-hydrogen-the-fuel-of-the-future-set-for-50-fold-expansion/?sh=4849a76b6df3 41 energetica INDIA- Oct-Nov_2021