By Vineet Mittal, Chairman, Avaada Group
The Ukraine – Russia war has led to the prices of #CrudeOil shooting to $130/barrel, the highest the world has witnessed in over a decade. The rise in prices of oil, #NaturalGas and #Fertilizers highlight India’s vulnerability to geopolitical sanctions. #GreenHydrogen is an emerging option that will help reduce India’s vulnerability to such price shocks.
Hydrogen, as an energy carrier, is crucial for achieving decarbonisation of hard-to-abate sectors. Many sectors such as iron ore and #steel, fertilizers, #refining, #methanol, and #maritime shipping emit major amounts of CO2, and carbon-free hydrogen will play a critical role in enabling deep decarbonization. India is one of the early movers in the green hydrogen space. More than 70 million tons of hydrogen are produced annually across the world, with India clocking around 8% of global production. India’s distinct advantage in low-cost #RenewableEnergy generation and world-class clean-power execution capabilities make green hydrogen the most competitive. This enables India to be potentially one of the most competitive producers of green hydrogen in the world. As India is targeting 500 GW of renewables by 2030, green hydrogen could act as a solution to extract value out of excess renewable power and avoid the duck curve possibilities in the grid.
Hydrogen is the technology of the future, a future that is not far away. By 2025, we will be using Hydrogen as a major fuel. India has announced the mission but we also need to develop a sound understanding of the hydrogen ecosystem. We do not have to import the technology. We have to look at what is happening in this domain globally and develop partnerships to develop this technology in a way that ecosystem – production, storage, transportation. A lot of R&D needs to be done before it becomes a reality. Govt. must allocate a budget & promote R&D for newer technologies like Green Hydrogen & Green Ammonia; along with time-bound approvals to set up the plant.