Business Standard<\/strong><\/u><\/strong><\/a><\/p>\n<\/blockquote>\n\n\n\nThe article, written by former NITI Aayog CEO Amitabh Kant, makes a powerful case for India’s potential to become the world’s pre-eminent hub for green hydrogen<\/strong>. It argues that India possesses a unique combination of strengths\u2014including the world’s cheapest renewable energy, ambitious government policy, a strong industrial base, and large domestic demand\u2014that positions it to lead the global race. The piece highlights the tangible momentum through recent tenders and projects and lays out five key priorities that India must act on to seize this transformative economic and industrial opportunity.<\/p>\n\n\n\nAn Overview of Hydrogen Fuel:<\/strong><\/u><\/strong><\/strong><\/u><\/strong><\/p>\n\n\n\nHydrogen is the most abundant element in the universe, but it rarely exists in its pure form (H\u2082). It must be extracted from compounds like water (H\u2082O) or hydrocarbons (like methane, CH\u2084). The method of extraction determines its “colour” and its environmental impact.<\/p>\n\n\n
\n
Green Hydrogen production<\/figcaption><\/figure><\/div>\n\n\nCredit<\/strong>: Getty Images<\/p>\n\n\n\n\nBlack\/Brown Hydrogen<\/strong>:<\/strong>\u00a0Produced using coal or lignite<\/strong>\u00a0through a process called gasification. This is the most polluting method, releasing significant amounts of CO\u2082.<\/li>\n\n\n\nGrey Hydrogen<\/strong>:<\/strong>\u00a0This is the most common form today. It is produced from natural gas (methane)<\/strong>\u00a0via a process called steam methane reforming (SMR). This process also releases a large amount of CO\u2082 into the atmosphere.<\/li>\n\n\n\nBlue Hydrogen<\/strong>:<\/strong>\u00a0This is essentially grey hydrogen, but with a key difference: the CO\u2082 emissions generated during the SMR process are captured and stored underground through Carbon Capture, Utilisation, and Storage (CCUS)<\/strong>\u00a0technology. It is a low-carbon, but not zero-carbon, solution.<\/li>\n\n\n\nYellow Hydrogen<\/strong>:<\/strong>\u00a0A newer term, this refers to hydrogen produced through electrolysis powered solely by solar energy<\/strong>.<\/li>\n\n\n\nGreen Hydrogen<\/strong>:<\/strong>\u00a0This is the ultimate clean energy carrier. It is produced using electrolysis<\/strong>, a process that splits water (H\u2082O) into hydrogen and oxygen, with the electricity for the electrolyser coming from renewable energy sources<\/strong>\u00a0like solar, wind, or hydro. It has zero carbon emissions<\/strong>\u00a0throughout its production lifecycle.<\/li>\n<\/ul>\n\n\n\nWhy is Green Hydrogen the Fuel of the Future?<\/strong><\/strong><\/p>\n\n\n\nGreen hydrogen is seen as a critical tool to decarbonise the global economy, especially in sectors where direct electrification is difficult.<\/p>\n\n\n\n
\nZero Emissions<\/strong>:<\/strong>\u00a0When used in a fuel cell, hydrogen combines with oxygen to produce electricity, with only water and heat as by-products<\/strong>. This makes it a completely clean fuel at the point of use.<\/li>\n\n\n\nEnergy Storage<\/strong>:<\/strong>\u00a0It can be produced during times of excess renewable energy generation (e.g., peak solar hours) and stored for later use, acting like a giant battery to stabilise the power grid.<\/li>\n\n\n\nVersatility<\/strong>:<\/strong>\u00a0It can be used in a wide range of applications:Industry:<\/strong>\u00a0To produce green steel, green ammonia for fertilisers, and in refineries.<\/li><\/ul>Transport:<\/strong>\u00a0To power fuel-cell electric vehicles (FCEVs), especially for long-haul trucks, buses, ships, and potentially aircraft.<\/li><\/ul>\n\nPower Generation:<\/strong>\u00a0It can be burned in gas turbines to generate electricity during peak demand.<\/li>\n<\/ul>\n<\/li>\n\n\n\nEnergy Security:<\/strong>\u00a0For a country like India, which imports over 85% of its oil, producing hydrogen domestically from renewable sources significantly enhances energy independence.<\/li>\n<\/ul>\n\n\n\nIndia’s National Green Hydrogen Mission (NGHM):<\/strong><\/u><\/strong><\/strong><\/u><\/strong><\/p>\n\n\n\nThe Union Cabinet, led by Prime Minister Narendra Modi, approved the National Green Hydrogen Mission<\/strong> on January 4, 2023<\/strong>.<\/p>\n\n\n\n\nPurpose<\/strong>:<\/strong>\u00a0The overarching goal is to make India a global hub for the production, utilisation, and export of Green Hydrogen<\/strong>\u00a0and its derivatives. It aims to create a comprehensive ecosystem to foster this new industry.<\/li>\n\n\n\nKey Targets by 2030<\/strong>:<\/strong>To develop Green Hydrogen production capacity of at least 5 Million Metric Tonnes (MMT) per annum<\/strong>.<\/li><\/ul>To add about 125 GW<\/strong>\u00a0of renewable energy capacity.<\/li><\/ul>To attract over \u20b98 lakh crore<\/strong>\u00a0in total investments.<\/li><\/ul>To create over 6 lakh jobs<\/strong>.<\/li><\/ul>To achieve a cumulative reduction in fossil fuel imports of over \u20b91 lakh crore<\/strong>.<\/li><\/ul>\n\nTo abate nearly 50 MMT<\/strong>\u00a0of annual greenhouse gas emissions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\nComponents of the Mission<\/strong><\/strong><\/p>\n\n\n\nThe mission is a multi-pronged strategy with several key components:<\/p>\n\n\n\n
\nSIGHT Programme<\/strong>\u00a0(Strategic Interventions for Green Hydrogen Transition):<\/strong>\u00a0This is the mission’s flagship financial support mechanism. It has two main components:Incentives for domestic manufacturing of electrolysers<\/strong>.<\/li><\/ul>\n\nIncentives for the production of green hydrogen<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\nPilot Projects<\/strong>:<\/strong>\u00a0To support the deployment of green hydrogen in hard-to-abate sectors like steel, transport, and shipping.<\/li>\n\n\n\nGreen Hydrogen Hubs<\/strong>:<\/strong>\u00a0To identify and develop regions capable of large-scale production and\/or utilisation of hydrogen as large-scale industrial hubs.<\/li>\n\n\n\nR&D and Skill Development<\/strong>:<\/strong>\u00a0To foster a robust research and development framework and to build a skilled workforce for the new industry.<\/li>\n<\/ul>\n\n\n\nIndia’s Competitive Edge<\/strong><\/strong><\/p>\n\n\n\nIndia is considered a frontrunner in the global green hydrogen race due to several unique advantages, which are also highlighted in the provided PIB links:<\/p>\n\n\n\n
\nAbundant Low-Cost Renewables<\/strong>:<\/strong>\u00a0India has one of the world’s lowest costs for generating solar and wind power, which is the single biggest input cost for green hydrogen production.<\/li>\n\n\n\nStrong Government Backing<\/strong>:<\/strong>\u00a0The NGHM provides a clear, ambitious, and supportive policy framework, giving investors the confidence to make long-term commitments.<\/li>\n\n\n\nLarge Domestic Market<\/strong>:<\/strong>\u00a0India is a major consumer of grey hydrogen in sectors like fertilisers and refining. This creates a large, built-in demand that can be switched to green hydrogen, ensuring offtake.<\/li>\n<\/ul>\n\n\n\nDecoding the Article: An Analysis<\/strong><\/u><\/strong><\/strong><\/u><\/strong><\/p>\n\n\n\nAmitabh Kant’s article builds on these foundational strengths to paint a highly optimistic picture of India’s green hydrogen future.<\/p>\n\n\n\n
India’s “Five Decisive Strengths”<\/strong><\/strong><\/p>\n\n\n\nThe author crystallises India’s advantage into five key points, which align perfectly with the mission’s foundations:<\/p>\n\n\n\n
\nUnmatched Renewable Energy Rates<\/strong>:<\/strong>\u00a0Citing prices of \u20b94.60 to \u20b95 per kWh<\/strong>\u00a0for round-the-clock renewables, he establishes India’s core cost competitiveness.<\/li>\n\n\n\nConsistent and Ambitious Policy<\/strong>:<\/strong>\u00a0The National Green Hydrogen Mission<\/strong>\u00a0is praised for providing clear targets and regulatory certainty.<\/li>\n\n\n\nStrong Industrial Base<\/strong>:<\/strong>\u00a0India’s existing ecosystem of engineering, pipelines, and ports means it doesn’t have to build everything from scratch.<\/li>\n\n\n\nLarge Domestic Demand<\/strong>:<\/strong>\u00a0The fertiliser, refining, and steel sectors provide a captive market, reducing reliance solely on exports.<\/li>\n\n\n\nImmense Export Opportunity<\/strong>:<\/strong>\u00a0Countries like Europe and Japan are actively looking for clean hydrogen imports, and India is perfectly placed to supply them.<\/li>\n<\/ol>\n\n\n\nMaking Sense of the Numbers: From Ambition to Action<\/strong><\/strong><\/p>\n\n\n\nThe article provides concrete evidence that the mission is already translating into action on the ground:<\/p>\n\n\n\n
\nSECI Tenders<\/strong>:<\/strong>\u00a0The Solar Energy Corporation of India (SECI) has already awarded contracts for 450,000 tonnes\/annum of green hydrogen<\/strong>\u00a0and 724,000 tonnes of green ammonia<\/strong>, showing significant scale.<\/li>\n\n\n\nRecord-Low Price<\/strong>:<\/strong>\u00a0The green ammonia tender achieved a price of \u20b955.75 per kilogram<\/strong>, proving India’s global cost leadership.<\/li>\n\n\n\nIOCL Panipat Project<\/strong>:<\/strong>\u00a0A landmark 25-year contract for 10,000 tonnes\/annum<\/strong>\u00a0at an all-inclusive price of $4.5 per kilogram<\/strong>\u00a0shows that large public sector undertakings are now making long-term commitments.<\/li>\n<\/ul>\n\n\n\nThe Real Prize: Green Value-Added Products<\/strong><\/strong><\/p>\n\n\n\nThe author rightly points out that the goal isn’t just to produce and export raw hydrogen. The real economic opportunity lies in using cheap green hydrogen to create high-value green products:<\/p>\n\n\n\n
\nGreen Fertilisers<\/strong>:<\/strong>\u00a0To reduce import bills and enhance food security.<\/li>\n\n\n\nGreen Steel<\/strong>:<\/strong>\u00a0To remain competitive globally, especially as Europe’s carbon border taxes<\/strong>\u00a0will penalise carbon-intensive steel.<\/li>\n\n\n\nGreen Ammonia<\/strong>:<\/strong>\u00a0To be used as a clean shipping fuel and as a more practical way to transport hydrogen over long distances.<\/li>\n<\/ul>\n\n\n\nThe Five Priorities: A Call to Action<\/strong><\/strong><\/p>\n\n\n\nTo secure its leadership, the author outlines a clear, five-point action plan:<\/p>\n\n\n\n
\nSecure G2G Agreements<\/strong>:<\/strong>\u00a0Get long-term (10-15 years) offtake contracts from importing countries to de-risk investments.<\/li>\n\n\n\nAccelerate Electrolyser Manufacturing<\/strong>:<\/strong>\u00a0Build domestic capacity to reduce import dependence and costs.<\/li>\n\n\n\nBrand “India Green Hydrogen”<\/strong>:<\/strong>\u00a0Market India’s cost advantage and quality through internationally aligned certification.<\/li>\n\n\n\nInvest in Skilling<\/strong>:<\/strong>\u00a0Create a national mission to train the tens of thousands of technicians needed.<\/li>\n\n\n\nCreate an Efficient Regulatory Environment<\/strong>:<\/strong>\u00a0Implement single-window clearances and predictable rules to cut delays and costs.<\/li>\n<\/ol>\n\n\n\nIn conclusion, the article is not just an optimistic forecast but a strategic blueprint. It argues that while the challenges of capital, certification, and skills are real, they are surmountable. By leveraging its unique strengths and acting decisively on key priorities, India can move beyond being just a participant and become the clear winner in the global green hydrogen race.<\/p>\n","protected":false},"excerpt":{"rendered":"
Know the details about The Green Hydrogen Race: Why India Is Poised to Finish in Front\tand how India needs to not just compete, but win the race to lead the world.<\/p>\n","protected":false},"author":29,"featured_media":181105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[4022],"tags":[],"class_list":["post-181097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vishleshan"],"yoast_head":"\n
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