Future of Hydrogen in India

At present, India produces around 6.7 Mt of hydrogen annually. A report published by The Energy and Resources Institute anticipates the demand to reach 23 Mt in 2050.

Refineries, fertilizer, and the steel industry are major consumers of hydrogen in the country. Apart from industries, active research, development, and demonstration is being carried out in the area of electricity production, hydrogen storage, and mobility (fuel cell powered cars, rail, truck, bus, ships).

Opportunities and Challenges of using Hydrogen as a Fuel

Volume and Mass Argument

• Hydrogen contains more energy per unit of mass than natural gas or gasoline, making it attractive as a transport fuel. However, hydrogen is the lightest element and so has a low energy density per unit of volume.
• This means that larger volumes of hydrogen must be moved to meet identical energy demands as compared with other fuels. This can be achieved, for example, through the use of larger or faster-flowing pipelines and larger storage tanks.

Compressing and Utilizing

• Hydrogen can be compressed, liquefied, or transformed into hydrogen-based fuels that have a higher energy density, but this (and any subsequent re-conversion) uses some energy.

Lower Solar Cost in India

• According to International Renewable Energy Agency’s report, reducing the cost of renewable-based electricity by half can halve the cost of green hydrogen if other cost components (capital cost, annual load factor of electrolyzer) remain unchanged.

Availability of Sufficient Water in India

• Production of green hydrogen requires water and green electricity as input to the electrolyzer. Each kg of hydrogen uses around 8.92 liters of demineralized water. The availability of sufficient water streams is critical.

Way Forward

• High technology cost, risk of undesirable sunk cost, absence of dedicated government policy, and lack of public awareness have been significant barriers in front of India’s hydrogen economy. However, the recent policy developments portray India’s serious intentions in transitioning towards green hydrogen in the long-term.