In an era where sustainability has taken center stage, the global race towards a greener energy future has intensified, with nations vying for a dominant stake in the energy landscape. Central to this endeavor is green hydrogen, a bridge to achieving ambitious global decarbonization targets. India, with its growing commitment to renewable energy, is at a pivotal juncture to harness the power of green hydrogen and carve a sustainable energy future for itself.
The International Energy Agency (IEA) estimates low-carbon hydrogen to constitute 10-15 per cent of global primary energy supply in 2050 in a net-zero scenario. As per this scenario, the world needs 150 MT of low-carbon hydrogen (including about 80 MT of green hydrogen) annually by 2030. This will require nearly $1.2-trillion investments for the supply and use of low-carbon green hydrogen from 2021 to 2030. In response, nations have embarked on a race to solidify their roles in shaping the energy world of tomorrow, recognizing the transformative power of green hydrogen.
India’s pursuit of a dominant position in the green hydrogen landscape places it in direct competition with formidable counterparts such as the U.S., Australia, China, Saudi Arabia, the UK, Spain, Egypt, and Latin American countries like Chile, Argentina, and Brazil.
Amid this competition, India holds several natural advantages that could position it as a viable contender in this global race and enable global trade participation: cost-efficient renewable generation and a scaled-up renewables ecosystem, a capacity for low-cost electrolyser manufacturing, and robust port and logistics infrastructure. The nation is thus positioning itself to capitalize on the hydrogen revolution, with the Indian Government taking steps to establish a hydrogen ecosystem in the country with a significant INR 19,744-crore ($2.3- billion) support program.
These efforts underscore the nation’s commitment to nurturing a hydrogen-powered future. However, a concerted effort will be required to enhance our capabilities, infrastructure, and policy frameworks, ensuring that we can seamlessly transition from these initial steps to large-scale deployment of hydrogen technology.
Early Mover Advantage versus Cost Curve Wait
As with any innovation, the age-old dilemma of being an early adopter versus waiting for cost curves to mature looms large. From a national perspective, establishing the green hydrogen supply chain early would give India a head-start in terms of two specific long-term economic advantages. First, it will help us rapidly scale up and reduce costs, securing India a substantial market share in global supply markets. Second, it will enable the domestic end-use sectors to switch early, safeguarding their long-term competitiveness. For example, our steel and auto sectors, that face the looming specter of decarbonization pressures, will be able to prepare early when supported by a robust domestic hydrogen supply chain.