Emerging as the cleanest energy contender in the battle to combat climate change and reach a net zero, hydrogen is that most abundant element found in space. It can be produced through electrolysis, a process of splitting water molecules into hydrogen and oxygen, from renewable sources such as solar, wind, and hydro power. It provides a clean and sustainable source of alternative fuels for transportation, electricity generation, and industrial applications.

India’s Ambitious Green Hydrogen Mission

India has set its sights on becoming a global leader in green hydrogen production and utilization. Under the highly ambitious National Green Hydrogen Mission, the country aims to:

• Become a Global Hub: India intends to establish itself as a global hub for the production, use, and export of green hydrogen.
• Technological Leadership: The mission aims to assume technology and market leadership in the green hydrogen sector.
• Domestic Production Target: India targets generating 5 million tonnes of green hydrogen annually for domestic consumption.

Additionally, many other national policies and initiatives favour the adoption of Hydrogen economy. For instance, the Renewable Energy Policy promotes the development of renewable energy sources, including hydrogen. The National Hydrogen Energy Mission aims to promote research, development, and demonstration of hydrogen technologies in India. The Make in India Initiative encourages domestic manufacturing and value addition, which can stimulate the growth of the hydrogen industry in India.

The Potential of Hydrogen

• Clean Energy Source: Green hydrogen production emits no greenhouse gases, making it a crucial player in decarbonizing the global economy. Unlike fossil fuels, its combustion produces only water vapor, eliminating harmful pollutants and air pollution concerns.
• Energy Security: By enabling the storage and transportation of renewable energy, hydrogen can enhance energy security. Renewable energy sources like solar and wind are intermittent, but hydrogen can be produced during periods of high renewable energy generation and stored for later use, ensuring a reliable and consistent energy supply.
• Industrial Applications: Hydrogen holds immense potential in decarbonizing hard-to-abate industries like steel, cement, and chemicals, where electrification is challenging. It can be used as a clean fuel source or feedstock in various industrial processes.
• Transportation: Fuel cell electric vehicles (FCEVs) powered by hydrogen offer a clean and efficient alternative to traditional gasoline-powered vehicles.

Challenges of the Hydrogen Economy

While hydrogen offers a promising path towards a clean energy future, there are significant challenges that need to be addressed:

• Cost: Currently, green hydrogen production is more expensive than traditional fossil fuels. The high costs associated with electrolysis, transportation, and storage infrastructure need to be brought down to make hydrogen a commercially viable option.
• Lack of Infrastructure: The widespread adoption of hydrogen requires a significant investment in infrastructure development. This includes building a network of hydrogen pipelines, refuelling stations, and storage facilities.
• Energy Losses: The conversion of renewable energy into hydrogen and back to electricity through fuel cells incurs energy losses. Optimizing these processes to improve efficiency is crucial.
• Policy and Regulation: Supportive government policies and regulations are essential to incentivize investments in hydrogen production, infrastructure development, and research and development.

The Road Ahead

Despite these challenges, major breakthroughs are being made in hydrogen technology. The costs associated with electrolysis and fuel cells are plummeting. Governments are incorporating policies and strategies to encourage the development of hydrogen across the world, even in India.

Here are some key steps to accelerate the development of the hydrogen economy:

• Investment in Research and Development: Continued research and development are crucial to improve hydrogen production efficiency, reduce costs, and develop new applications.
• International Cooperation: The International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) is an example of international cooperation pushing the development of hydrogen technologies. Sponsoring the interaction of governments, industries, and research institutions, IPHE champions innovation and leads to hydrogen solutions adoption around the world.
• Government Incentives: Governments can play a vital role by providing financial incentives for hydrogen production, infrastructure development, and FCEV adoption.
• Public-Private Partnerships: Collaboration between public and private sectors is essential to overcome the challenges and accelerate the commercialization of hydrogen technologies.
• Building Infrastructure: Developing a robust hydrogen infrastructure network, including pipelines, storage facilities, and refuelling stations, is critical for widespread adoption.

Conclusion

The hydrogen economy has the potential to change the global energy landscape toward a clean, sustainable, and secure source of energy. By addressing its existing challenges through technological advancements, supportive policies, and collaborative efforts, hydrogen can play a transformative role in achieving a net-zero emissions future.

At SunLegal, we provide legal advisory and guidance on the emerging hydrogen economy. Our lawyers can help businesses and investors navigate the existing framework, spot opportunities, and avoid risks in relation to hydrogen projects.

Sources:

https://hydrogencouncil.com/en/

https://www.niti.gov.in/verticals/energy

https://mnre.gov.in