As the world transitions towards sustainable energy solutions, green hydrogen now stands tall among the many promises and longings toward a cleaner, fully decarbonized future. The government of India has been moving some crucial steps forward to advance its green hydrogen sector by achieving several policy shifts in 2024. 

Understanding Green Hydrogen 

Green hydrogen is created through the electrolysis of water using renewable energy sources like solar, wind, or hydropower. Unlike fossil fuel-based conventional hydrogen production, green hydrogen is a zero-carbon fuel, emitting no carbon during its production. This source has the potential to be able to decarbonize many sectors, including transportation, industry, and power generation.

Read our Blog: What is Green Hydrogen and How to set up a green hydrogen production plant?

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Why Green Hydrogen is Important?

• Decarbonization: Green hydrogen will significantly reduce greenhouse gas emissions in hard-to-abate sectors.
• Energy Storage: It acts as an effective energy storage solution that helps balance supply and demand in renewable energy systems.
• Energy Security: Diversifying sources of energy, green hydrogen improves energy security and reduces reliance on fossil fuels.
• Economic Growth: Green hydrogen sector growth can provide jobs and stimulate new technologies and industries.

Key Policy Shifts of the Indian Government for Green Hydrogen in 2024

The Indian government has lately realized the value of green hydrogen and taken various policy shifts in 2024 in order to enhance its pace. The policy shift will facilitate investment opportunities, innovation, and a conducive environment for the adoption of green hydrogen technologies.

National Green Hydrogen Mission (NGHM)

The most important initiative is launching the National Green Hydrogen Mission, which will make India one of the world's greatest exporting nations for green hydrogen through:

• Production Targets: The mission envisages ambitious production targets, and by 2030, it aims to produce 5 million metric tons of green hydrogen.
• Increased Funding: The Union Budget 2024 has allocated INR 600 crore for the NGHM for 2024-25, which is a significant hike from INR 100 crore in 2023-24. This funding is part of a total outlay of INR 19,744 crore up to FY 2029-30.
• Infrastructure Development: Investment in infrastructure will be made to support the production, storage, and distribution of green hydrogen.

Renewable Energy Policies

To enhance the growth of the green hydrogen sector, India is improving its renewable energy policies:

• Increased Renewable Capacity: The government plans to achieve the target of 500 GW of non-fossil fuel capacity by 2030, generating sufficient renewable energy for production.
• Promotion of solar and wind energy: To generate the electricity needed for electrolyzing, policies on solar and wind energy projects are most important.

Regulatory Framework

A strong regulatory framework is needed to encourage investment in the green hydrogen industry:

• Standardization of Technologies: The government will standardize the technologies regarding the production of green hydrogen for safety and efficiency purposes.
• Safety Regulations: Safety regulations will be put in place to minimize the risks associated with the production and storage of hydrogen.

Public-Private Partnerships (PPP)

Public-private partnerships will be promoted by the government to tap the expertise and resources of both sectors.

• Private-Public Partnership with Industry Leaders: The collaboration between public entities and private firms would help in technology transfer and innovation in green hydrogen solutions.
• Joint Venture: The joint venture among public entities and private companies would help in the massive projects in the sector.

International Cooperation

India realizes that without international cooperation, the green hydrogen agenda cannot be advanced and thus is looking for international collaboration.

• Bilateral Agreements: The administration is negotiating bilateral agreements with global leaders in green hydrogen technology so that knowledge and best practices can be shared.
• Participation in International Fora: India is also participating in international forums set to discuss clean energy solutions, especially green hydrogen.

Read our Blog: The Challenges and Opportunities of green hydrogen in India 

Impact on Important Industries

The policy changes for supporting the green hydrogen industry would have a great impact on multiple industries:

Transportation Industry

Green hydrogen is an alternative to the use of fossil fuels in transportation:

• Fuel Cell Vehicles (FCVs): The take-up of FCVs driven by green hydrogen can save emissions from heavy-duty vehicles including trucks and buses.
• Hydrogen Refueling Infrastructure: Investment in refueling stations will enhance the transition to hydrogen-powered automobiles.

Industrial Applications

The use of green hydrogen as a reducing agent could replace coal in industries, such as steel manufacturing.

• Decarbonizing Steel Production: Green hydrogen could significantly reduce carbon emissions in steel-making processes.
• Chemical Production: Hydrogen is an essential feedstock in ammonia production for fertilizers. Using green hydrogen can help decarbonize this process.

Power Generation

Green hydrogen can complement renewable energy sources by providing grid stability:

• Energy Storage Solutions: Hydrogen can be stored during periods of excess renewable generation and used at peak demand times.
• Blending with Natural Gas: Blending green hydrogen with natural gas can reduce carbon emissions from existing gas infrastructure.

Agriculture Sector

The agriculture sector can leverage green hydrogen for sustainable practices:

• Fertilizer Production: Using green hydrogen for ammonia synthesis reduces reliance on fossil fuels for fertilizers.
• Irrigation Systems: Hydrogen-powered pumps can enhance irrigation efficiency while reducing emissions.

Impact on the Green Hydrogen Industry

• Increased Incentives: Mention investments expected to be made within the value chain of green hydrogen, the extent of such investments, and what potential impact they will have.
• Job Generation: Discuss expected employment generations and the need for an elite workforce.
• Technological Advancement: Focus on technological development and how this enhances production processes
• Infrastructural Development: Hydrogen hubs and necessary infrastructure are also going to be developed.

Challenges Ahead in Policy shifts 2024 

While policy shifts are promising, several issues persist that need attention:

• Production Costs: Green hydrogen is expensive to produce compared to conventional means at the moment; scaling up this source will take further technological developments that could lower costs.
• Infrastructure Development: Huge investment would be required to build a huge infrastructure capable of storing and distributing green hydrogen.
• Public Awareness: Education of stakeholders regarding the benefits and application of green hydrogen
• Regulatory Barriers: Clearing the regulations is likely to be important in rushing through the faster rollout of the technologies related to green hydrogen.

Conclusion

Policy changes in 2024 mark the beginning of something big in India's quest to develop its green hydrogen sector and position it in the vanguard of a global clean energy transition. Through incentives for innovation, increased capacity for renewable energy, a robust regulatory framework, public-private partnerships, and international cooperation, India is setting the foundation for a sustainable future driven by green hydrogen.

As these policies begin, they will not only add substantial value to India's pursuit of climate goals but also produce economic opportunities across a diverse range of sectors. Therefore, embracing this clean source of energy will enable it to improve its energy security while making great strides toward having a greener planet. The journey toward a sustainable future powered by green hydrogen has just begun; however, with strong policies and collaboration, India is well set to lead this transformative movement on a global scale.