Unlocking Green Hydrogen in India
Want to know more on the latest buzz about Green Hydrogen in India?
#WatchNow LawWiser’s latest video on “Unlocking Green Hydrogen in India” with Expert speaker Rimali Batra, Associate Partner, DSK Legal, and our host Sania Husaini, Lawyer & Consulting Editor, LawWiser.
In this video Rimali Shares insights on
⚗️ How promising is the plan and policy of Green Hydrogen, for India?
⚗️ Has there been a re-look or detailing of the incentives on the Green Hydrogen Policy?
⚗️ Any developments on connectivity to green hydrogen plants
⚗️ Any developments to tackle challenges in transportation and storage
⚗️ How is India transitioning to a Green Hydrogen Future?
Watch all this in detail in the full feature Now!
UNLOCKING GREEN HYDROGEN IN INDIA
How promising is the plan and policy of Green Hydrogen, for India?
The recent report issues by NITI Aayog, in partnership with Rocky Mountain Institute (RMI), have outlined ten strategies for India to become a major producer of green hydrogen. According to the report, India might have the largest green hydrogen generation capacity in the world of by 2030. India’s hydrogen demand is anticipated to rise by more than four times by 2050, making up 10% of the world’s hydrogen demand. Hence, the figures look very promising.
Has there been a re-look or detailing of the incentives on the Green Hydrogen Policy, as we discussed earlier?
Yes, the government has been at it. In addition to the earlier listed incentives, now the government has in order to open entry of players in the sector, has offered incentives to start-ups, helping entrepreneurs through incubators and investor networks, and aiding in implementing rules – which all in turn manage the ‘first-mover risks’ for start-ups. These are after all essential as a source of low-cost financing for scaling up and bridging markets.
Additionally, the government is establishing Green Hydrogen standards and expand the labelling programme.
They are also, through global hydrogen alliance, aiming to promote the export of green hydrogen and green hydrogen-embedded products.
Land in Renewable Energy Parks can be used to produce Green Hydrogen/Green Ammonia. The Indian government intends to establish Manufacturing Zones. Any of the Manufacturing Zones can be used to build a green hydrogen / green ammonia generating plant.
Lastly, based on state grand challenge, three hydrogen corridors should be built across the country. Power minster RK Singh has previously noted that Germany and Japan could be key markets for green hydrogen produced in India.
Last when we discussed, the Government had promised connectivity to green hydrogen plants for a long period, has there been any further movement on the same?
Indeed, so according to the recent update, Green Hydrogen / Green Ammonia plants will be given Open Access for Renewable Energy sourcing within 15 days of receipt of a complete application. The Open Access charges must be paid in accordance with the rules. Connectivity to the ISTS for Renewable Energy capacity put up for the purpose of manufacturing Green Hydrogen / Green Ammonia shall be given on a priority basis under the Electricity (Transmission system planning, development, and collection of Inter State Transmission costs) Rules 2021.
Last when we spoke, we discussed challenges in transportation and storage, is there any further development on the same?
Hydrogen storage and transportation have always been challenging due to the gas’s distinctive properties—flammability, low density, ease of dispersion, and embrittlement. Nonetheless, technological advancements and commercial imperatives are progressively permitting more cost-effective forms of storage and transportation.
Hydrogen has three main avenues for storage, each with their own use cases and challenges:
- Storage Tanks are the simplest and most cost-effective way to store and transport hydrogen, which is often compressed and cryo-compressed. The issue for compressed hydrogen storage is that the low density of hydrogen necessitates the use of large containers—three times the size of methane and ten times the size of petrol which in turn raises material prices. Liquefaction of hydrogen is another method of increasing density, although it has greater energy costs—up to 30% of the energy content of the fuel compared with 4–7% for compressed hydrogen.
- Due to the high energy cost of liquefaction and material inefficiencies of compression, chemical storage in the form of compounds such as liquified organic hydrogen carriers (LOHCs) like methanol and toluene, and hydrides such as ammonia (NH3) are also gaining traction. Each technique of chemical storage, however, has its own set of advantages and disadvantages, such as the cost of energy conversion and chemical properties that necessitate cautious handling, among other things.
- Natural underground storage in salt caverns and salt domes is a high-volume, low-cost solution, although local availability can be difficult.
Hydrogen can be transported three main ways, depending on the distance, volume, and state in which transporting:
- Pipelines are the most cost-effective way to transport hydrogen across vast distances. Pipeline construction typically necessitates volume and demand certainty in order to justify investment. Existing natural gas pipes can also be reused if they meet the technical standards for reducing the risk of embrittlement. Repurposing existing pipelines also allows for hydrogen blending into existing natural gas networks for end users where blended hydrogen can speed up demand creation.
- Trucks are also used to transport smaller amounts of hydrogen, both gaseous and liquid, for local distribution and longer journeys.
- Tanker ships are increasingly being employed for larger-volume, longer-distance transportation, mostly of liquid hydrogen (LH2), LHOCs, and ammonia. Shipping hydrogen is now expensive because of additional conversion costs (liquefaction or chemical conversion) in addition to the structural design required to prevent embrittlement risk.
What are your thoughts on the transition to a Green Hydrogen Future?
With countries’ and industries’ increasing net-zero emission targets and hydrogen’s capacity to decarbonize hard sectors, hydrogen has gained traction in a number of countries. At least 43 countries have established or are establishing strategies or roadmaps for a hydrogen economy. The majority of government-related hydrogen R&D spending is centred in Europe, the United States, Japan, and China. In spite of, the positive view on transition there are challenges faced while producing the clean Hydrogen, which India is likely to overcome by 2050. However, one thing India will need to steer clear from is a having a complex policy regulation on green hydrogen.