India is poised for remarkable economic growth as it strives to meet the needs and aspirations of its expanding population. This growth trajectory is expected to create a significant increase in energy demand, projected to rise by 35% by 2030. Alongside energy needs, demand for key materials like cement, steel, copper, and aluminum will escalate as infrastructure development and the transition to sustainable energy sources gain momentum. Balancing these rising demands with sustainability presents a considerable challenge for the world’s largest democracy, and green hydrogen has emerged as a crucial solution.
To address these challenges, India has made substantial commitments under the Paris Agreement, aiming for 500 gigawatts (GW) of non-fossil electricity generation capacity by 2030. Significant progress has already been achieved, with 152 GW of renewable energy installed as of August 2024, including 89 GW from solar and 47 GW from wind energy. These milestones highlight India’s dedication to a cleaner energy future, where green hydrogen plays a transformative role in reducing emissions and supporting industrial growth.
Green Hydrogen: A Game-Changer in India’s Energy Transition
Central to India’s energy transition and industrial decarbonization efforts is the adoption of green hydrogen, which holds immense potential to drive sustainable growth and reduce emissions. Green hydrogen is produced through water electrolysis powered by renewable energy sources, making it a critical enabler for achieving net-zero emissions by 2070.
The role of green hydrogen extends beyond energy. For instance, it enables the production of green steel by replacing traditional carbon-intensive processes that rely on coal, drastically reducing the steel industry’s carbon footprint. Additionally, green hydrogen can be combined with captured carbon dioxide (CO2) from industries like cement production to produce methanol—a versatile compound used in manufacturing durable materials such as PVC. This approach locks away carbon for extended periods, a particularly advantageous solution for a country like India that lacks extensive carbon sequestration reserves.
India established the National Green Hydrogen Mission in recognition of the potential of green hydrogen, with the goal of producing 5 million metric tonnes a year by 2030. However, some estimates suggest the nation could produce up to 10 million tonnes annually by the same year, underscoring the country’s vast untapped potential.
Overcoming Challenges to Scale Production
To unlock the full potential of green hydrogen, reducing production and handling costs is imperative. A comprehensive strategy involves bringing down renewable energy costs to below $0.02 per kilowatt-hour and achieving significant reductions in the costs of electrolysis, as well as the storage, conversion, and transportation of green hydrogen. These measures will help bring the production cost below $2 per kilogram, a crucial milestone for widespread adoption.
Industrial clusters near major ports are emerging as vital hubs for scaling green hydrogen technologies. These clusters bring together co-located companies, public institutions, and high-emission industries, providing a strategic platform for optimizing resources, scaling technologies, and integrating green hydrogen into various industrial processes.
By focusing on high-emission sectors like cement, steel, and fertilizers, these clusters also enable the trade and export of green hydrogen derivatives, such as green ammonia. This not only addresses industrial emissions but also enhances national energy security.
Developing Industrial Clusters for Green Hydrogen
In order to achieve India’s green hydrogen objectives, industrial clusters are essential. Strategic locations with abundant renewable energy resources, robust infrastructure, and an integrated industrial ecosystem offer three key advantages:
1. Proximity to Renewable Energy Resources
Clusters located near regions rich in solar and wind energy can maximize cost efficiencies in producing green hydrogen. This proximity reduces transmission and distribution costs, directly lowering production expenses and helping achieve the cost target of less than $2 per kilogram.
2. Integrated Industrial Ecosystems
These clusters are designed to integrate hydrogen production with local industries and export activities. By using green hydrogen in sectors like steel and chemicals while exporting derivatives like green ammonia, they minimize logistical challenges and reduce overall costs.
3. Advanced Infrastructure
Modern infrastructure is critical for the efficient production, storage, and transportation of hydrogen. Clusters equipped with hydrogen storage tanks, pipelines, and export terminals are better prepared to cater to both domestic and global markets.
A Case in Point: The Mundra Cluster
An example of India’s strategic approach to industrial clusters is the Mundra Cluster, located near the Great Rann of Kutch (GRK). This region boasts abundant renewable energy potential, with plans for the development of the Khavda Renewable Energy Park—expected to become the world’s largest renewable energy facility. This 30 GW park will integrate both solar panels and wind turbines, significantly contributing to the country’s renewable energy capacity. It is estimated to prevent 58 million tonnes of CO2 emissions and generate over 15,000 green jobs during its construction.
By leveraging such infrastructure, the Mundra Cluster exemplifies how industrial hubs can align with India’s vision of a green hydrogen-driven future. This alignment not only aids in decarbonizing heavy industries but also positions the nation as a global leader in the export of sustainable energy solutions.
The Broader Impact of Green Hydrogen
In India, the use of green hydrogen extends beyond energy security. It represents a significant step toward achieving international climate goals and fostering economic growth. By integrating renewable energy resources with industrial processes, green hydrogen offers a scalable solution to mitigate emissions while creating new economic opportunities.
As India works toward achieving its ambitious targets, the focus remains on fostering collaboration across industries, investing in cutting-edge infrastructure, and supporting policy frameworks that promote innovation and adoption. With the right strategies in place, green hydrogen can revolutionize India’s energy landscape, making it a cornerstone of sustainable development for decades to come.
Conclusion
The journey toward a sustainable energy future in India is heavily reliant on innovation, infrastructure, and collaboration. Green hydrogen is not just an alternative; it is the cornerstone of India’s strategy to decarbonize industries, enhance energy security, and build a resilient economy. By fostering industrial clusters, reducing production costs, and leveraging abundant renewable energy resources, India is poised to become a global leader in green hydrogen production and export. The benefits extend beyond environmental impact; they include job creation, economic growth, and technological advancements. To fully realize its potential, India must focus on policy support, private sector participation, and international partnerships. As the nation embraces this green energy revolution, green hydrogen stands as a symbol of hope, driving progress and sustainability for generations to come.