India Can Position Itself As A Global Green Hydrogen Leader

NEW DELHI- Green hydrogen has emerged as a key fuel in the global fight against climate change, offering a path to significantly cut emissions in challenging sectors like steel, fertilizers, shipping, aviation, and road transport, according to an article by former G20 Sherpa and NITI Aayog CEO Amitabh Kant.

While nations across Europe, Asia (including Japan and Korea), and the Middle East are investing heavily, Kant argues that India possesses the unique combination of resources, policy, and demand needed to emerge as the world’s leading hub for this new energy vector.

The article identifies five crucial advantages working in India’s favor. First, cost-competitiveness is a major factor, as India offers globally unmatched rates for round-the-clock renewable energy, with prices ranging from Rs 4.60 to Rs 5 per kilowatt-hour (kWh), making green hydrogen production extremely cost-competitive. Second, the National Green Hydrogen Mission ensures that government policy is both consistent and ambitious, providing the clear targets and regulatory confidence sought by investors.

Third, India’s established industrial base, including engineering capabilities, pipelines, refineries, and ports, provides a ready ecosystem necessary for scaling green hydrogen production. Fourth, significant internal consumption needs for fertilizers, refining, steel, and chemicals ensure that large domestic demand will drive hydrogen uptake alongside exports. Finally, the immense export opportunity is compelling, as markets like Europe and Japan are actively seeking clean hydrogen imports, and India is uniquely placed to serve these global demands.

Highlighting India’s progress, the article points out that the Solar Energy Corporation of India (SECI) has already awarded contracts for 450,000 tonnes per annum of green hydrogen production to leading firms like Reliance, Greenko, ACME, and L&T. SECI also finalized a 724,000 tonne green ammonia tender aggregating demand from 13 fertilizer plants nationwide, which achieved a record-low price of Rs 55.75 per kilogram, making it one of the most competitive globally.

The article acknowledges that the risks associated with expanding India’s green hydrogen industry are significant but deems them surmountable. High capital costs can be addressed through concessional finance, sovereign green bonds, and blended finance models. Issues like certification disputes can be preempted by adopting international standards and securing bilateral recognition agreements with major markets. Skill shortages can be mitigated through a national skilling mission tailored to hydrogen and allied industries.

Challenges of tender cancellations and delays can be improved by better bid design and more realistic project timelines. By producing the cheapest green hydrogen globally, building value-added products like green steel, ammonia, and fertilizers, and establishing itself as a trusted global supplier, India can potentially leapfrog into global leadership in the clean economy. The green hydrogen race is underway, and while many countries are running hard, India is uniquely positioned to finish in front, the article concludes. (IANS)