Green hydrogen corridors can help India achieve its net-zero mission goals: NITI Aayog
- EconomyNews
- August 25, 2022
Apex public policy think tank NITI Aayog on Thursday said that green hydrogen can substantially spur industrial decarbonisation and economic growth for India in the coming decades.
The Aayog in its report, ‘Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India’, claimed that this could provide a pathway for India to achieve its net-zero ambitions by 2070.
The Aayog in its report, ‘Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India’, claimed that this could provide a pathway for India to achieve its net-zero ambitions by 2070.
“Three hydrogen corridors should be developed across the country based on state grand challenges…the governments can provide grants and loans to start-ups and projects, support entrepreneurs through incubators and investor networks, and put in place regulations that manage first-mover risks,” the report stated.
While hydrogen can be produced from multiple sources, India’s distinct advantage in low-cost renewable electricity means that green hydrogen will emerge as the most cost-effective form. The report concludes that by 2050, the hydrogen demand in India could grow more than four-fold, representing almost 10 per cent of global hydrogen demand. While on a longer term, heavy-duty trucking is likely to drive the majority of demand growth, accounting for almost 52 per cent of total demand by 2050.
While hydrogen can be produced from multiple sources, India’s distinct advantage in low-cost renewable electricity means that green hydrogen will emerge as the most cost-effective form. The report concludes that by 2050, the hydrogen demand in India could grow more than four-fold, representing almost 10 per cent of global hydrogen demand. While on a longer term, heavy-duty trucking is likely to drive the majority of demand growth, accounting for almost 52 per cent of total demand by 2050.
“Policy push is needed both on the demand and supply side. Demand incentives can ease the barriers of high cost, which can enable initial market creation and can be phased out as the market matures. Simultaneously, there must be a push on the supply side, together with infrastructure, to scale green hydrogen production. This can be achieved with a combination of PLIs for electrolysers and fuel cells, and requirements for the industry and private players to deploy these technologies,” the NITI Aayog said.
The report noted: “Hydrogen can help reduce the nation’s reliance on oil imports and bolster a domestic job market. Additionally, it provides the ability to participate in the ensuing global energy transition and the economic opportunity that transition presents.”
“India has a unique opportunity to become a global leader in the hydrogen energy ecosystem. With proper policy support, industry action, market generation and acceptance, and increased investor interest, India can position itself as a low-cost, zero-carbon manufacturing hub, at the same time fulfilling its goal of economic development, job creation, and improved public health,” the report concluded.
The report noted: “Hydrogen can help reduce the nation’s reliance on oil imports and bolster a domestic job market. Additionally, it provides the ability to participate in the ensuing global energy transition and the economic opportunity that transition presents.”
“India has a unique opportunity to become a global leader in the hydrogen energy ecosystem. With proper policy support, industry action, market generation and acceptance, and increased investor interest, India can position itself as a low-cost, zero-carbon manufacturing hub, at the same time fulfilling its goal of economic development, job creation, and improved public health,” the report concluded.