India aims to decarbonize hard-to-abate sectors like steelmaking and oil refining by developing a green hydrogen ecosystem. Policy reforms, enhanced manufacturing, and demand-side interventions, along with infrastructure investments, can make India a global leader in green hydrogen, reducing carbon emissions and fossil fuel dependency.
Green hydrogen is produced through water electrolysis powered by renewable energy sources like solar and wind, or nuclear power.
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.
Hydrogen- A clean Molecule
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.