A recent report by Avendus Capital has highlighted the growing competitiveness of green hydrogen (GH2) with current production forms. The report predicts that green hydrogen and green ammonia will attract investments of USD 125 billion in India by 2023, making them the future fuels of the world.
GH2 is produced through the process of electrolysis, using power from renewable energy sources, and does not emit any greenhouse gases. The research and development efforts to make green hydrogen a viable fuel for various industries, including transport, power, aviation, and others, have seen significant investments.
It’s worth noting that although the production cost of green hydrogen has fallen by over 40% in the last eight years, it still remains relatively high for commercial usage. However, the Indian government’s commitment to promoting the green hydrogen industry is evident through its incentivized production schemes and the National Hydrogen Mission.
India, with its abundant water sources, cheap renewable electricity production, and emerging status as a global manufacturing hub, has the necessary ingredients for cost-competitive green hydrogen production. The country also has an annual hydrogen demand of approximately 6MMTPA, making it the third-largest consumer of hydrogen globally.
To further encourage the growth of the green hydrogen industry, the Indian government has identified three green hydrogen/ammonia hubs near major ports. Additionally, state governments have announced several incentives to boost the green hydrogen ecosystem.
While Europe, Japan, and other countries that lack the necessary resources for cost-competitive green hydrogen production are looking to import these fuels, India is positioning itself as a giant green hydrogen hub. Its lower cost of production, geographical proximity to importing countries, and existing export infrastructure make it an ideal candidate for supplying green hydrogen and green ammonia to the global market.
The report by Avendus Capital offers valuable insights into the potential of green hydrogen and green ammonia as the future fuels of the world. As the world shifts towards sustainable energy sources and net-zero emission targets, these fuels are expected to play a crucial role in decarbonizing various sectors and driving economic growth.
Frequently Asked Questions (FAQ)
1. What is green hydrogen (GH2) and how is it produced?
Green hydrogen (GH2) is produced through the process of electrolysis using power from renewable energy sources. It does not emit any greenhouse gases during production.
2. How much investment is predicted for green hydrogen and green ammonia in India by 2023?
The report predicts that green hydrogen and green ammonia will attract investments of USD 125 billion in India by 2023.
3. Why is the production cost of green hydrogen still relatively high for commercial usage?
Although the production cost of green hydrogen has fallen by over 40% in the last eight years, it still remains relatively high for commercial usage.
4. What is the Indian government doing to promote the green hydrogen industry?
The Indian government is committed to promoting the green hydrogen industry through incentivized production schemes and the National Hydrogen Mission.
5. What factors make India an ideal candidate for green hydrogen production?
India has abundant water sources, cheap renewable electricity production, and is emerging as a global manufacturing hub, making it an ideal candidate for cost-competitive green hydrogen production.
6. How does India position itself in the global market for green hydrogen and green ammonia?
India is positioning itself as a giant green hydrogen hub, with its lower cost of production, geographical proximity to importing countries, and existing export infrastructure.
7. What role do green hydrogen and green ammonia play in decarbonizing sectors and driving economic growth?
As the world shifts towards sustainable energy sources and net-zero emission targets, green hydrogen and green ammonia are expected to play a crucial role in decarbonizing various sectors and driving economic growth.
Key terms and definitions:
– Green Hydrogen: Hydrogen produced through the process of electrolysis, using power from renewable energy sources and emitting no greenhouse gases during production.
– Green Ammonia: Ammonia produced through the process of electrolysis using power from renewable energy sources, and emitting no greenhouse gases during production.
– Electrolysis: The process of using an electric current to induce a chemical reaction, such as separating hydrogen from water molecules.
Related links:
– Avendus Capital: Official website of Avendus Capital, the organization behind the report on green hydrogen and green ammonia in India.
– National Hydrogen Mission: Official website of the National Hydrogen Mission, an initiative by the Indian government to promote hydrogen as a clean energy source.