Powering Sustainable Growth and Industrial Decarbonisation

As India undergoes rapid economic growth and infrastructural expansion, its energy demand is expected to surge dramatically, with a projected 35% increase by 2030. Balancing this rising demand with sustainability is one of the country’s key challenges. To meet its ambitious climate goals and industrial needs, India is turning to green hydrogen as a transformative solution to decarbonise its industries and align with its climate commitments under the Paris Agreement.

The Green Hydrogen Vision
India's goal to achieve 500 gigawatts (GW) of non-fossil electricity generation by 2030 is central to its clean energy transition. By August 2024, the country had already installed 152 GW of renewable energy, with 89 GW from solar and 47 GW from wind. This growth highlights India's determination to shift away from fossil fuels and embrace cleaner energy sources.

At the heart of this shift lies green hydrogen, produced through renewable-powered water electrolysis. This carbon-free energy carrier is expected to play a pivotal role in transforming India’s industrial landscape. In high-emission sectors like steel and cement, green hydrogen can replace carbon-intensive materials like coal, leading to significant reductions in CO2 emissions.

Cutting Emissions in Key Industries
The potential for green hydrogen to decarbonise India's industries is immense. In steel production, where coal is traditionally used, green hydrogen offers a cleaner alternative that can drastically cut emissions. In the cement sector, captured carbon from production processes can be combined with green hydrogen to produce methanol, which can be used to create durable building materials like PVC. This process not only reduces emissions but also locks carbon away in long-lasting products, an important strategy for a nation like India that lacks significant carbon sequestration reserves.

National Green Hydrogen Mission: A Path to Net-Zero
In recognition of green hydrogen’s potential, India launched the National Green Hydrogen Mission, which aims to produce 5 million metric tonnes of green hydrogen annually by 2030. With the right infrastructure and investments, this target could be doubled to 10 million metric tonnes by the same year. Achieving these ambitious goals will require substantial cost reductions, especially in renewable energy and electrolysers, as well as an efficient strategy for production, storage, and transport.

According to a report by the World Economic Forum and Bain & Company, one of the key milestones in green hydrogen development is reducing the cost to less than $2 per kilogram. This will be driven by lowering renewable energy costs to under $0.02 per kilowatt hour, and improving technology for electrolysers, storage, and transport.

Industrial Clusters: Catalysts for Change
The establishment of industrial clusters near key ports is crucial for scaling up green hydrogen production. These clusters bring together industries and public institutions in strategic locations, promoting the adoption of green technologies and creating an environment conducive to efficient energy use. By integrating hydrogen production with high-emission sectors like cement, steel, and fertilisers, these clusters will help India decarbonise its industries while also positioning the country as an exporter of green hydrogen derivatives such as ammonia.

One such example is the Mundra Cluster in Gujarat, which showcases how green hydrogen can be integrated with renewable energy resources. Located near the Great Rann of Kutch and just 150 kilometres from the 30 GW Khavda facility, the world’s largest renewable energy park, the Mundra Cluster is expected to play a vital role in India’s green transition. Once completed, the Khavda facility will house both solar panels and wind turbines, helping to prevent 58 million tonnes of CO2 emissions while creating over 15,200 green jobs.

The Road Ahead
India’s green hydrogen strategy is not just about achieving its climate goals; it’s also about securing energy independence and creating a more sustainable industrial base. By investing in renewable energy, reducing costs, and leveraging industrial clusters, India is well on its way to becoming a global leader in green hydrogen production. The country’s commitment to decarbonisation, paired with the innovative use of hydrogen in high-emission industries, will be essential for achieving net-zero emissions by 2070 and building a greener, more sustainable future for all.