Green Hydrogen Fuel, Types, Benefits and Challenges

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Context: The Ministry of New and Renewable Energy (MNRE) has announced a Rs-496-crore (until 2025-26) scheme to support pilot projects that either test the viability of green hydrogen as a vehicle fuel or develop secure supporting infrastructure such as refuelling stations.

About Green Hydrogen

Hydrogen is the lightest element found in nature. Water, fossil fuels, or biomass can all be used to produce hydrogen, which can then be separated and used as a fuel or source of energy. It is more environment-friendly as it does not produce carbon dioxide (produced by combustion of fossil fuels) and thus does not contribute to climate change.

Green Hydrogen: An Overview

Green Vs. Grey Hydrogen

Aspect	Green Hydrogen	Grey Hydrogen
Definition	Hydrogen gas is produced through the electrolysis of water using renewable energy sources, without carbon emissions.	Produced by steam methane reforming of natural gas, resulting in hydrogen and CO2 as byproducts.
Production	Utilises renewable energy (wind, solar, hydroelectric) for electrolysis, ensuring a carbon-neutral process.	Involves heating natural gas with steam and a catalyst, an energy-intensive process that emits CO2.
Environmental Impact	Environmentally friendly due to zero carbon emissions during production.	Less environmentally friendly due to significant CO2 emissions during production.
Use Cases	Used as a clean energy carrier for transportation, power generation, and industrial processes requiring hydrogen.	Used in refining petroleum, treating metals, producing fertilizers, and as a feedstock in various industrial processes.

Types of Hydrogen

Grey Hydrogen is traditionally produced from methane (CH4), split with steam into carbon dioxide (CO2, Green House Gas) and hydrogen.
- Grey hydrogen is increasingly being produced from coal, with significantly higher CO2 emissions per unit of hydrogen produced.
- It has no energy transition value.
Blue Hydrogen follows the same process as grey. However, the CO2 produced is captured and stored for the long term through suitable technology.
- It is not possible to capture 100% of the CO2 produced and not all means of storing it are equally effective in the long term.
Turquoise Hydrogen is made using a process called methane pyrolysis to produce hydrogen and solid carbon. In the future, turquoise hydrogen may be valued as a low-emission hydrogen.
Green Hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity.

Why Green Hydrogen for Transportation?

Reduces emissions to combat climate change.
Curbs pollution and helps meet India’s climate goals.
Reduces reliance on costly fossil fuel imports.
Potential for India to become a global hub for green hydrogen production and export.

Benefits of Green Hydrogen

Net Zero Transition: The use of hydrogen in combustion has zero GHG emissions. Since, renewable energy is used in producing Green Hydrogen, the entire chain (production to consumption) has very low GHG emissions (in contrast to Grey Hydrogen). Thus, Green Hydrogen is vital to the Net Zero transition.
- It can be utilized to decarbonize the heavy industry, long-haul freight, shipping, and aviation sectors.
Energy Storage Solution: Hydrogen is emerging as one of the leading options for storing energy from renewables.
- Hydrogen-based fuels can potentially transport energy from renewables over long distances; from regions with abundant energy resources to energy-consumption areas.
Versatility: Green Hydrogen can be transformed into electricity or synthetic gas and used for commercial, industrial or mobility purposes.
Availability of Water: Green Hydrogen can be produced from water which has abundant availability.

Challenges with Green Hydrogen

High production cost, though expected to decrease with innovation and scaling.
Challenges in storage and transportation at scale.
Green hydrogen is currently too expensive to compete with BEVs for passenger cars.
- Example: Retail green hydrogen prices in California reached $30 per kilogram in 2023.
Building hydrogen refuelling stations is more expensive than BEV charging stations.
- Example: California Transportation Commission estimates a 72% higher cost for hydrogen stations.
Lack of specialised cylinders to store green hydrogen in India.
The existing natural gas pipeline infrastructure is not suitable for hydrogen.
The flammability of hydrogen necessitates stricter handling and safety standards.
Advancements in battery technology could reduce the long-term viability of FCEVs.

India and Green Hydrogen

Achieve Net Zero Emissions: India is the third-largest emitter of carbon dioxide (CO2) globally. The adoption of Green Hydrogen will facilitate India’s goal of lowering its carbon footprint and attaining net zero emissions by 2070.
Decarbonization: Carbon-free hydrogen will enable substantial decarbonization in industries that produce iron ore and steel, fertilizers, methanol, refining and emit significant volumes of carbon dioxide (CO2).
Self Sufficiency: India’s energy landscape is at a crucial turning point, and green hydrogen will have an essential role in making the country self-sufficient by 2047 and energy independent.
Less Imports: Presently, India spends more than US$ 160 billion in foreign exchange every year for energy imports. A comprehensive action plan for establishing a Green Hydrogen economy can make India a hub for the production and export of green hydrogen.

Which Sectors in India Can Benefit from Green Hydrogen?

Green Steel: In the coming years, green hydrogen-based steel will be cost-competitive due to the declining costs of renewable energy and electrolysers. Market restrictions on carbon-intensive steel and the provision of carbon credits will further increase the sustainability of steel made from green hydrogen.
Transport: Hydrogen fuel is used to power fuel-cell electric cars which emit no hazardous gases. In the coming years, hydrogen fuel cell electric cars may become cost-competitive for heavy-duty vehicles with longer trip ranges, such as buses, lorries, and other commercial vehicles.
Shipping: By using green hydrogens or their derivatives, such as green ammonia and green methanol, as fuel for propulsion and other operations, maritime transportation and ports have a significant potential to reduce their carbon footprint.

What Steps have been Taken to Promote Green Hydrogen in India?

The National Green Hydrogen Mission: It has been approved with an initial outlay of Rs.19,744 crore. The Ministry of New and Renewable Energy (MNRE) will be responsible for overall coordination and implementation of the Mission.
- The components of the Mission are:
  - SIGHT Programme: Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen will be provided under the Mission.
  - Pilot projects: The Mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.
  - R&D Projects: The Mission will assist the Strategic Hydrogen Innovation Partnership (SHIP), a public-private partnership structure for research and development. The objectives, deadlines, and magnitude of R&D initiatives shall be appropriate for creating globally competitive technology.
  - Skill Development: A coordinated skill development programme will also be undertaken under the Mission.
- Mission Benefits:
  - Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country.
  - Making India a leading producer and supplier of Green Hydrogen in the world.
  - Creation of export opportunities for Green Hydrogen and its derivatives.
  - Reduction in dependence on imported fossil fuels and feedstock.
  - Attracting investment and business opportunities for the industry.
  - Creating opportunities for employment and economic development.
Green Hydrogen/Green Ammonia Policy: The Government launched this policy to provide clean fuel to the common people of India. This will reduce dependence on fossil fuels and also reduce crude oil imports.
- According to the policy:
  - Green Hydrogen / Ammonia manufacturers may purchase renewable power from the power exchange.
  - Waiver of inter-state transmission charges for 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before 30th June 2025.
Initiatives by States/PSUs:
- Kerala Hydrogen Economy Mission: Kerala aspires to become a 100% renewable energy-based State by 2040 and net carbon neutral by 2050. The Government of Kerela has constituted the Kerala Hydrogen Economy Mission to contribute strategic inputs and facilitate partnerships towards transforming the State into a green hydrogen hub.
  - Kerala is also the first State in India to include hydrogen-powered mobility in its zero emissions mobility policy.
- Indian Oil Corporation Ltd (IOCL): As part of a decarbonization effort, IOCL aims to replace at least a tenth of the present fossil fuel-based hydrogen at its refineries with green hydrogen.
- Oil & Natural Gas Corporation (ONGC): India’s state-run Oil & Natural Gas Corporation (ONGC) and joint venture partner Greenko signed an agreement in July 2022 to invest up to US$ 6.2 billion in green hydrogen and renewable energy projects.

Way Forward

Renewable Energy Integration: Invest in solar, wind, and hydroelectric power to ensure a clean source of electricity for green hydrogen production.
Infrastructure Development: Establish global standards for safe hydrogen handling, storage, transportation, and refuelling infrastructure.
Innovation and Cost Reduction: Encourage research to improve electrolysis technology, storage solutions, and overall cost competitiveness with traditional fuels.
Policy Support: Implement policies like subsidies, tax benefits, and grants to support green hydrogen production and its use in public transportation.
Global Cooperation: Foster international collaboration to share knowledge, technology, and best practices to create a global market for green hydrogen.