Introduction
Green hydrogen is hydrogen produced by splitting water into hydrogen and oxygen through the process of electrolysis powered entirely by renewable energy sources such as solar and wind. Unlike conventional grey or brown hydrogen derived from fossil fuels via steam methane reforming or coal gasification, green hydrogen produces zero direct greenhouse gas emissions, positioning it as a cornerstone for clean energy transitions.
Significance for India's Energy Security
As one of the world's largest importers of crude oil and natural gas, India's transition to green hydrogen holds transformative strategic and economic value:
- Import Substitution and Fiscal Relief: India currently imports over 85% of its crude oil and roughly 50% of its natural gas. The National Green Hydrogen Mission targets an annual production capacity of at least 5 Million Metric Tonnes (MMT) by 2030, which is projected to avert over ₹1 lakh crore in cumulative fossil fuel imports.
- Decarbonisation of Hard-to-Abate Sectors: Green hydrogen serves as a direct, clean feedstock and heat source to replace grey hydrogen and coking coal in key heavy industries, including ammonia-based fertiliser manufacturing, petroleum refining, and green steelmaking.
- Renewable Grid Balancing and Storage: With the aggressive expansion of variable solar and wind capacities, green hydrogen functions as a high-capacity, long-duration seasonal energy storage medium, effectively mitigating grid intermittency where lithium-ion batteries are economically unviable.
- Geopolitical and Supply Chain Resilience: Generating domestic hydrogen insulates India from global geopolitical shocks, energy price volatility, and supply chain disruptions associated with fossil fuel trade.
Major Challenges in Adoption
Despite its vast potential, scaling up green hydrogen adoption in India faces notable techno-economic constraints:
- High Production Costs: The current production cost of green hydrogen stands at approximately $3.5 to $5 per kilogram, making it significantly uncompetitive against fossil-fuel-derived grey hydrogen, which costs around $2 per kilogram.
- Storage and Transportation Complexities: Hydrogen has an extremely low volumetric energy density. Storing and moving it requires energy-intensive cryogenic liquefaction at -253°C or high-pressure compression (350 to 700 bar), which presents leakage hazards and risks hydrogen embrittlement in conventional steel pipelines.
- Resource and Water Strains: Producing one kilogram of green hydrogen via electrolysis demands approximately 9 litres of demineralised ultra-pure water. Setting up large electrolyser facilities in arid or water-stressed regions with high solar radiation poses ecological and resource-allocation dilemmas.
- Supply Chain and Critical Mineral Bottlenecks: Advanced electrolyser technologies, such as Proton Exchange Membrane (PEM) units, heavily depend on rare critical raw materials including platinum, iridium, and nickel, for which India relies entirely on import-dependent supply chains.
Conclusion
To overcome these barriers and unlock commercial viability, targeted policy interventions like the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, along with mandated green hydrogen consumption obligations, are critical. Accelerating domestic electrolyser manufacturing and establishing localized hydrogen production hubs will be instrumental in realizing India's goal of net-zero emissions by 2070 and energy independence by 2047.