Open Forum
New Delhi,
2 March 2022
Green Hydrogen Fuel
BIG FILLIP BY NEW POLICY
By Dhurjati Mukherjee
With the
first part of the National Hydrogen Policy notified, the government is
targeting production of 5 million tonnes of green hydrogen by the year 2030. In
the much awaited policy, green hydrogen and ammonia manufacturers can purchase
renewable power from the power exchange or set up renewable energy capacity or
through any other developer, anywhere in the country.
It may be
mentioned here that in the recent Asia Economic Dialogue, organised by the Pune
International Centre and the Ministry of External Affairs ministry, RIL
Chairman, Mukesh Ambani observed that India must aim to end its dependence on
coal and oil in the next two-three decades. He said clean energy exports from
India could rise to half a trillion dollars in 20 years. In the Jamnagar oil
refining complex, the plant currently converts petroleum coke into synthesis
gas to produce blue hydrogen for $1.2-1.5 per kg. This is much lower than green
hydrogen produced with renewable resources, which costs between $3-6.55 per kg,
according to the European Commission’s July 2020 hydrogen strategy.
Though
there has been lot of emphasis on solar energy for the past few years, green
hydrogen is acknowledged by experts to be an equally convenient and acceptable
option, keeping in view environmental pollution.
It is
understood that the government would provide open access – connectivity to
transmission lines for renewable energy – within 15 days of the receipt of the
application. Manufacturers can store their unconsumed renewable power, up to 30
days, with the distribution company, the policy stated. It is interesting to
note that the government intends to accord a waiver of inter-State transmission
charges for 25 years to the manufacturers if the projects are commissioned
before June, 2025.
Rising
petroleum prices and air pollution has thrown open to researchers and
scientists to take a look at hydrogen way back in the late 1900s. A 1996 report
of the US Senate Committee on energy and natural resources stated: “The most
promising immediate use of hydrogen is for transportation…use of hydrogen
leaves no ozone depleting chemicals, no acid rain, no nuclear waste”. Compared
with batteries, there are many advantages. While the tanks needed to store
hydrogen are relatively heavy, battery packs for plug-in electric cars can
weigh hundreds of kilos. It is understood that the smallest Tesla battery
weights about half a tonne. Yet, a few kilos of hydrogen pack more energy than
a large battery -- the Mirai’s fuel economy proves it.
Hydrogen
generated entirely by renewable energy or from low carbon power can emerge as a
game changer with its potential to curb greenhouse gas emissions by 15 to 25
per cent. Several leading independent power producers are willing to set up GH
production units in India for supplying end customers. Domestic GH will also
address India’s energy security to significantly reduce India’s import of oil,
gas and coal. Commercial viability of GH is dependent on the convergence of
certain forces.
Clean
electric energy is a critical input for GH production and such affordable
energy has to be made available. Ambitious targets must be set for rapid
expansion in electrolyser capacity while R&D has to be incentivised. This
will enable development of automated and efficient manufacturing processes and
adoption of technological advancements. Thus proper infrastructure is
imperative for efficient transport and storage of hydrogen.
Regarding
manufacture, the cheapest way to do so is from natural gas but this releases
a lot of carbon dioxide, negating the benefits of a zero emission vehicle.
While this dirty hydrogen is cheap at $1 a kilogram, the clean type made
through the electrolysis of water, using renewable energy, is five times
costlier. Altogether about 90 million tonnes of hydrogen is made every year and
most of it used up in fertilizer factories and petroleum refineries. A battery
car fed 100 watts from the grid makes use of 80 watts but the hydrogen route is
much less efficient. Hydrogen may not be the best fuel for running cars at
present, but it has an advantage over plug-in vehicles in heavy applications.
With
experiments in full scale, it is a matter of time before the greener kind of
hydrogen made with solar or wind energy becomes cheap and abundant. Researchers
at McKinsey see this happening at 2030. Morgan Stanley analysts say
green hydrogen will be competitive in 2-3 years. India is also in the
global green hydrogen race now and industrialist, Mukesh Ambani, pledging a
massive investment of $80 billion, stated recently that Reliance would bring
down the cost of green hydrogen below $1 per kg in a decade from Rs 3 presently.
While the
political establishment appears to be quite sincere in propagating green
hydrogen and starting its manufacture at the earliest, it is expected that in
the second phase the government would mandate the use of green hydrogen and
green ammonia by plants in a phased manner. There are also proposals to set up
manufacturing zones where plants can be set up. Besides, producers would be
allowed to set up bunkers near ports for storage of green ammonia for export by
shipping.
The
introduction of clean hydrogen fuel would bring a transformation in India’s
energy policy and save urban areas from pollution. Now it remains to be seen
how quickly this can be introduced and implemented at competitive prices. The
policy has spelt out clearly that the Centre would play a role in the pricing
of green hydrogen, which brings hope of this fuel being affordable.
With great
emphasis on renewables, green hydrogen and even nuclear power, India would be
able to tackle the criticism of the West as regards environmental pollution. As
the budget rightly increased the production linked incentive for domestic
integrated solar manufacturing facilities from this fiscal’s allocation of Rs
4500 crore to Rs 19,500 crore in 2022-23, keeping in view the goal of achieving
280GW of solar power by 2030.
Moreover,
it would be in a better position to balance development with environmental
concerns as at no cost can the development process in the country be stalled.
One cannot deny the fact that the developed world has achieved all this over
the years, not with clean energy, and it is only in recent years that they are
talking about this when they are both technologically and financially strong to
make the necessary shift.
The induction
of green hydrogen would obviously be a trend setter but all depends on how
quickly the process of manufacture, transportation and storage is available in
the country. As it is, this may start from next year and we would eagerly await
encouraging news in this matter within a year or so. But the emphasis on
renewables as well as electric power should be maintained. ---INFA
(Copyright, India
News & Feature Alliance)
|