How India’s green hydrogen ambition could help meet global sustainability goals
India’s Economy is set for significant expansion as it fulfils the needs and ambitions of its growing population. This will create a substantial surge in energy demand over the next two decades – it is projected to increase by 35% even by 2030. The demand for transport and materials like cement, steel, copper and aluminium will also increase dramatically as the country develops its infrastructure and advances its energy transition. The challenge for the world’s largest democracy is to meet these rising demands equitably while ensuring sustainability.
As part of its international climate commitments under the Paris Agreement, India is working towards an ambitious target of 500 gigawatts (GW) of non-fossil electricity generation capacity by 2030. Progress so far has been noteworthy: the country had installed 152 GW of renewable energy by August 2024, including 89 GW of solar and 47 GW of wind, according to its Ministry of New and Renewable Energy. This is a significant step towards India’s clean energy goals.
Powering India’s green hydrogen future
Green hydrogen will be key to addressing India’s energy transition and industrial transformation challenges, and achieving its goal of net-zero emissions by 2070. Produced through renewable-powered water electrolysis, green hydrogen and its derivatives can play a vital role in cutting emissions.
Green steel production, for instance, uses green hydrogen to replace more carbon-intensive elements like coal, significantly reducing its CO2 footprint. Low-cost green hydrogen can also be combined with CO2 captured from cement production to produce methanol, a versatile chemical used to make durable building materials like PVC. By incorporating CO2 into these long-lasting products, carbon is effectively locked away for extended periods. This is a valuable solution for a country like India, which lacks large-scale carbon sequestration reserves.
Recognizing green hydrogen as a way to simultaneously meet growing energy needs and reduce emissions, India launched its National Green Hydrogen Mission in 2030. It aims to produce 5 million metric tonnes of green hydrogen annually by 2030. India’s potential is even greater, however – some estimates indicate a capacity to produce 10 million tons of green hydrogen annually by 2030.
Reducing production and handling costs will be critical if India is to achieve this potential. A recent report by the World Economic Forum and Bain & Company outlined several strategies for expediting green hydrogen adoption in India. This includes reducing production costs to less than $2 per kilogram (/kg) by lowering renewable energy costs to below $0.02 per kilowatt hour, and supporting a rapid decrease in electrolyser costs, as well as the costs of converting, storing and transporting green hydrogen.
This is where green hydrogen industrial clusters can help, especially those located near major ports. These geographic concentrations of co-located companies and public institutions provide a strategic platform for scaling up technologies, sharing resources and optimizing energy demand.
By concentrating production and integrating it with high-emission industries such as cement, steel and fertilizers, industrial clusters support decarbonization and enable the trade and export of green hydrogen derivatives like green ammonia. They are essential for managing industrial emissions and enhancing national energy security.
Building successful industrial clusters
Industrial clusters will play a crucial role in advancing India’s green hydrogen ambitions. Clusters located in regions with significant renewable energy resources and developed infrastructure are particularly well-suited to drive large-scale hydrogen production and integration for three reasons:
1. Proximity to renewable energy
Industrial clusters situated close to abundant solar and wind resources are well-positioned to maximize cost efficiencies in green hydrogen production. Powered by nearby renewable energy sources, these clusters can significantly reduce the costs associated with energy transmission and distribution. This will lower the overall production costs of green hydrogen, helping to achieve the target of less than $2/kg for hydrogen production.
2. Integrated industrial ecosystem
Successful clusters integrate hydrogen production with local industrial processes and export activities. By producing hydrogen, using it in industries such as steel and chemicals, and exporting it as green ammonia, these clusters can reduce logistical challenges and costs.
3. Advanced infrastructure
Cutting-edge infrastructure is essential for the effective production, storage and transport of hydrogen. Clusters with well-developed facilities, including hydrogen storage tanks, pipelines and export terminals, are better equipped to meet both domestic and international demand.
The Mundra Cluster is a good example of India’s industrial cluster strategy. It is located near the Great Rann of Kutch (GRK), a salt marsh with abundant renewable energy resources. So, just 150 kilometres from the Mundra Cluster, the world’s largest renewable energy park is being developed. The 30 gigawatt Khavda facility will house both solar panels and wind turbines when completed and is expected to prevent 58 million tonnes of CO2 emissions and create over 15,200 green jobs during its development.
Author : Mr. Karan Adani, Managing Director, Adani Ports and Special Economic Zone (APSEZ)
: Mr.Sagar Adani, Executive Director, Adani Green Energy Ltd (AGEL)
Source : World Economic Forum