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Last Update 14 August 2023

Scaling hydrogen production in India - Enabling right policy framework and gap assessment

Regulations & policy framework examination for hydrogen scale up in India


Hydrogen: Status, Drivers & Barriers
Green hydrogen is an energy carrier that can be used in many different applications. However, its actual use is still very limited. Each year around 120 million tonnes of hydrogen are produced globally, of which two-thirds are pure hydrogen and one-third is in a mixture with other gases (IRENA, 2019). Hydrogen output is mostly used for crude oil refining and for ammonia and methanol synthesis, which together represent almost 75% of the combined pure and mixed hydrogen demand.

Today’s hydrogen production is mostly based on natural gas and coal, which together account for 95% of production. Electrolysis produces around 5% of global hydrogen, as a by-product from chlorine production. Currently, there is no significant hydrogen production from renewable sources: green hydrogen has been limited to demonstration projects.


Green hydrogen production, conversion and end uses across the energy system


Drivers of the New Wave of Hydrogen
There have been several waves of interest in hydrogen in the past. These were mostly driven by oil price shocks, concerns about peak oil demand or air pollution, and research on alternative fuels. Hydrogen can contribute to energy security by providing another energy carrier with different supply chains, producers and markets; this can diversify the energy mix and improve the resilience of the system. Hydrogen can also reduce air pollution when used in fuel cells, with no emissions other than water. It can promote economic growth and job creation given the large investment needed to develop it as an energy carrier from an industrial feedstock.

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