India heavily relies on fossil fuels, with coal accounting for 45 percent of its primary energy demand, followed by petroleum (25 percent) and biomass (20 percent) (IEA 2023). This dependence leads to high import rates for crude oil, coal, and natural gas, contributing to geopolitical risks and a significant fiscal deficit. Fossil fuels also contribute to 75 percent of India’s greenhouse gas (GHG) emissions (Mukherjee & Chatterjee, 2022). While renewable energy is expanding, hard-to-abate sectors like steelmaking and oil refining remain challenging to decarbonize.
To address growing emissions and enhance energy security, India requires a domestically produced, low-carbon fuel that can reduce reliance on imported fossil fuels. Hydrogen presents a promising solution due to its versatility, as it can be used both as a fuel and an industrial feedstock. Its clean-burning properties, meaning it produces only water vapor when combusted, make it an ideal candidate for decarbonizing various sectors.
In 2021, India produced around 6 million tonnes of hydrogen (IEA, 2022), primarily using emissions-intensive methods such as steam methane reforming (SMR) and coal gasification. These processes, though widely used, release significant amounts of carbon dioxide into the atmosphere, counteracting the environmental benefits of hydrogen.
Green hydrogen is produced through water electrolysis powered by renewable energy sources like solar and wind, or nuclear power. This method does not emit carbon dioxide, making it a vital tool for achieving net-zero goals.
Another low-carbon option is blue hydrogen, which is produced through SMR or coal gasification, but with carbon capture and storage (CCS) technologies that trap and store the emitted CO2. While blue hydrogen reduces emissions compared to traditional methods, it still depends on fossil fuels.