Explained: What Is Green Hydrogen And Why It's Considered As The ¡®Fuel Of The Future¡¯

Seeing the extreme potential of green hydrogen, it is now being considered as the ¡®fuel of the future¡¯. It is one of the most abundant elements on earth for a cleaner alternative fuel option.

Presently, less than 1 per cent of hydrogen produced is green hydrogen. According to the International Renewable Energy Agency (IRENA), hydrogen will make up 12% of the energy mix by 2050. It was further suggested that about 66% of this hydrogen used should come from water, not natural gas.

What is green hydrogen?

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Hydrogen produced using renewable energy through electrolysis is called Green hydrogen. In this method, an electric current is used to separate hydrogen from oxygen in the water. Renewable sources (like wind or solar) are used in the need for electricity for electrolysis. Thus, no greenhouse gasses are emitted during the production of hydrogen.

Why is it called fuel of the future?

Hydrogen too produces energy when burnt like all other fuels. What makes it environment-friendly fuel is that the by-products of burning hydrogen are water and water vapour.

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Being an energy carrier, it can store or deliver a huge amount of energy. Presently, it is used in petroleum refining and fertilizer production and transportation is also creating a new market for it.

Hydrogen can be used in fuel cells to generate electricity and heat. Further, it has the potential to produce energy for use in diverse applications like backup power, portable power etc.

It is comparatively highly efficient and has a lower carbon footprint.

Green hydrogen use in India

To produce ammonia and methanol in industrial sectors including refineries and fertilisers, over 6 million tonnes of hydrogen is consumed by India every year. By 2050, hydrogen consumption is expected to rise by 28 million tonnes.

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It is projected that India's hydrogen demand will increase five-fold by 2050, with 80% of it being green.

It is well known that green hydrogen is sustainable and environment-friendly but it is costly too. The cost factor restrains the Indian plan to adapt green hydrogen on a larger scale. Also, only a few companies in India manufacture electrolysers, used for the generation of green hydrogen.

As per the Energy and Resources Institute (TERI), it costs $5-$6 per kg to produce green hydrogen. This is expensive for industries like steel and fertilizers to adopt the fuel and at least $2 per kg might help in improving the scenario. Reducing prices is not possible till India ramp up its electrolysers manufacturing.

What are the initiatives taken by India?

The government of India launched the National Hydrogen Energy Mission (NHEM) in 2021-22 to work in the sector.

In 2022-23, the Ministry of Power announced a Green Hydrogen Policy (GHP) and welcomed Industry participants. The policy offers the establishment of manufacturing zones for production, connectivity to the ISTS (Inter-State Transmission System) and free transmission for 25 years with few underlined exceptions.

By 2030, a target of 5 million tonnes per annum (MTPA) of green hydrogen production is set under the policy.

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