Green Hydrogen Dreams: India’s Path To A $0.5 Trillion Opportunity By 2050
Green hydrogen is gaining relevance in modern times as it has the potential to address numerous pressing environmental challenges.
New Delhi (India), March 22: Hydrogen is expected to serve 10 to 20% of the energy demand of the world by 2050. It emerges as a significant element in the global transition phase towards decarbonization. India is likely to become one of the prominent players in the Hydrogen sector. Green hydrogen is a known clean energy source that only emits water vapour. Besides this, it leaves no residue in the air.
The urgent need to reduce greenhouse gas emissions has given a wake-up call to all. It has led to extreme climate events and also, there is an increase in global temperature. In the current scenario, annual emissions are projected to be around 53 billion tonnes of CO2 equivalent. The energy production from fossil fuels accounts for 66% of these emissions.
In the year 2021, 82% of overall energy production was derived from fossil fuels. Moreover, 20% of energy production was associated with renewable sources. This entire scenario is likely to witness a major turnaround by 2050. Renewable energy is expected to contribute about 52% to electricity production in the sphere of Net Zero.
There are numerous benefits of green hydrogen in the modern context. It can be produced from renewable energy sources, such as water electrolysis using wind or solar energy. Furthermore, it can be used in vehicles powered by hydrogen, such as planes, trains, and ships. This eliminates emissions of atmospheric pollutants in transport. One of the significant merits of green hydrogen is that it can be utilized in fuel cells to produce electricity and can be stored for future use.
Relevance of Green Hydrogen in Modern Scenario
Green hydrogen is gaining relevance in modern times as it has the potential to address numerous pressing environmental challenges. Since it is produced through electrolysis powered by renewable energy sources such as solar or wind, it’s a crucial tool that can decarbonize numerous sectors such as industry, heating, and transportation. Moreover, it offers a clean alternative as a feedstock or energy source for the steel, chemical, and cement industries, reducing their carbon footprint.
Co-founder of Corpbiz Narendra Kumar said, “There are two significant alternative methods for producing low-carbon hydrogen, such as generating green hydrogen via the electrolysis of water, leveraging the power of renewable electricity, and utilizing carbon capture in fossil-fuel-based production. This is especially relevant and crucial for industries such as heavy-duty transport, steel manufacturing, and high-temperature manufacturing processes. The development of green hydrogen technologies can stimulate economic growth and create thousands of job opportunities in manufacturing, construction, and other industries. “
Industries have started focusing on setting up a 3.5 MT capacity of green hydrogen. They are engaged in land acquisition in several states. That’s the rapid pace at which our country, India, is growing. In January 2023, the centre gave the green signal to the National Green Hydrogen Mission with a substantial outlay of Rs 19,744 crore. The objective is to transform India into a global manufacturing hub for green hydrogen.
In recent times, the number of green startups has witnessed a significant rise in India and globally. Many green business enthusiasts are eyeing company registration in India following the emergence of the ‘go green trend’ and starting their entrepreneurial journey. The National Green Hydrogen Mission strives to promote development of a production capacity of around 5 Million Metric Tonne per annum with a linked renewable energy capacity addition of 125 GW in the nation by 2030.
Many climate and green tech startups emerged in the last decade. They all meet EPR compliance needs to stay committed to sustainability and build their reputations.
Marching ahead toward 2050, the demand for green hydrogen is anticipated to surge by nearly five times. It will emerge as the key player in the energy sector with the potential to reach a USD 0.5 trillion industry. The significant shift in hydrogen supply chains will hopefully favour regions with high renewable energy potential. The regions that are expected to reap maximum benefits from the transformative shift are Latin America, North America, Australia, Saudi Arabia, and the U.S. The future of green hydrogen production holds immense potential and can contribute to the growth of a sustainable economy.
