Green hydrogen is a
technology that has been gaining momentum in recent years as a potential
solution to the challenges of transitioning to a sustainable energy future.
Currently almost all hydrogen produced worldwide is “grey,” which is used in
petroleum refining, steel and fertilizer production and is also used in fuel
cells to power vehicles and provide electricity but it compounds the challenge
of environmental sustainability. Green hydrogen can produce green ammonia and
expand hydrogen's application to hard to abate industries such as steel
production, refineries and fuel cell, significantly accelerating the industry's
transition towards sustainable energy.
The global green
hydrogen market is projected to grow by USD 46.25 billion from 2024-2028 due to
its increasing demand as green feedstock in industries like fertilizers and
methanol production fuels growth, but the challenge remain as it costs around 2
- 3 times more than grey hydrogen. Fuel cells used for green hydrogen power are
priced 1.5 - 2 times higher than their fossil fuel counterparts. High cost has
resulted in uncertainty around the globe resulting in its slower adoption.
There is need for global collaboration and research to lower the production
cost. In India, the production cost of green hydrogen is around $4–5/kg and is
should be lowered to $2/kg for making it an economically viable option.
In India, the
government has proposed budget allocation of Rs. 19,744 Cr up to 2029-2030 for
National Green Hydrogen Mission that aims to make India a ‘global hub’ for
using, producing and exporting green hydrogen. This mission aims to have green
hydrogen production capacity of at least 5 MMT per annum and is expected to
abate nearly 50 MMT of annual greenhouse gas emissions. India has the potential
to become a hub for green hydrogen derivative exports due to its relatively
low-cost renewable energy, skilled workforce, and abundance of land for
renewable energy expansion which it can exploit to become leader in green
hydrogen export.
The global green
hydrogen market is estimated to grow at a CAGR of 66.83% till 2028
represent enormous opportunities for different industries across the globe. It
will bring opportunity for electrolyzer manufacturers to invest and in the
market as they are much needed for green hydrogen production. The adoption of
green hydrogen will result in abatement of carbon emission from industries such
as steel production and petroleum refineries resulting in easy transition
towards sustainable energy.
