“In the quest for a greener tomorrow, green hydrogen shines as the beacon of hope, fueling innovation and progress towards a carbon-free economy.” – ES Ranganathan.
Green hydrogen, a clean and sustainable alternative to traditional hydrogen production methods, has been gaining significant attention as the world transitions towards a low-carbon future.
India, recognizing the potential of green hydrogen in curbing carbon emissions and fostering energy independence, has laid out an ambitious green hydrogen policy. The government’s commitment to promoting green hydrogen production is evident through various initiatives and incentives aimed at accelerating its adoption.
“By providing a conducive policy framework, India aims to foster investments and collaborations in the renewable energy sector, thereby creating a sustainable ecosystem for green hydrogen production”, shares ES Ranganathan. However, one of the most important things that comes between planning and executing is the cost.
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The cost of green hydrogen has been a critical factor influencing its widespread adoption. However, thanks to significant technological advancements and economies of scale, the cost of green hydrogen is projected to witness a substantial reduction in the coming years.
“To successfully compete with other energy sources and realize the full potential of the National Green Hydrogen Mission, India must harness a synergy of technological advancements and regulatory support, driving cost competitiveness and accelerating our journey towards a sustainable energy future.” Says, ES Ranganathan, former marketing director of GAIL and an expert in the Oil and Energy industry.
As of now, the cost of manufacturing green hydrogen, which relies on renewable energy instead of fossil fuels, stands at approximately 300 rupees per kg in India. To further promote the production of green hydrogen and reduce carbon dioxide emissions, the Indian government is planning to introduce an incentive plan. Under this $2 billion scheme, set to launch this year, green hydrogen fuel producers will receive incentives amounting to at least 10% of their production costs.
Specifically, the government will provide incentives worth a minimum of 30 Indian rupees per kg for the production of green hydrogen fuel. This move is aimed at driving the growth of the green hydrogen sector and establishing India as a significant player in green hydrogen exports.
“Comparing the cost of green hydrogen in India to global benchmarks, it becomes evident that the country is steadily moving towards competitiveness”, shares ES Ranganathan. The cost of green hydrogen has also witnessed a notable decline in various other countries across the world, making it an increasingly viable and economically attractive option for the energy transition. emphasizes the importance of scaling up green hydrogen production and fostering international collaborations to further drive down costs and accelerate its integration into global energy markets.
The future of green hydrogen appears promising, considering the collective efforts towards technological innovations and cost reductions. The demand for clean energy solutions is continuously increasing, driven by global commitments to combat climate change. Green hydrogen’s potential to decarbonize various sectors, including transportation, industry, and power generation, positions it as a pivotal element in achieving a sustainable energy landscape.
ES Ranganathan shares “I am optimistic about the continued growth of green hydrogen as a crucial pillar of the global energy transition. The implementation of supportive policies, investment incentives, and international collaborations are expected to further drive the proliferation of green hydrogen projects. As the hydrogen economy evolves, green hydrogen is anticipated to play an integral role in realizing a greener and more resilient energy future.”
India’s robust green hydrogen policy, combined with global efforts, aims to propel the adoption of this eco-friendly energy source. As the cost of green hydrogen continues to decline and its applications expand, it is set to play a crucial role in the global effort to combat climate change and achieve a greener, more sustainable world.
