Mapping of hydrogen production costs globally and comparing with India

Understanding the low carbon hydrogen production – Comparative analysis of hydrogen production, carbon emissions, costs involved and the current market share spread globally

As a matter of fact, hydrogen can be produced in variety of ways, wherein some of the ways are “cleaner” when compared to others. It is pertinent to note that to maximize the environmental gains H2 must be produced GHGs. The cleanest method to producing hydrogen involves breaking of water down into its components through electrolysis, using electricity feed generated from renewable sources is called “green hydrogen”. For India, as a country it is pertinent to focus production of green H2 at a larger scale, as the country is promoting renewable installations, especially solar PV and solar roof top.

Currently the most common hydrogen produced globally is gray H 2 , involves use of a fossil fuel to heat water into steam and mixing the steam with methane in order to capture H2 thus released. While we add a filter to capture the released GHGs the filtered H 2 shall result will be referred as “blue hydrogen”. In near future blue hydrogen is likely to remain economically most viable globally as well as in India wherein the availability of methane, with CCS technology have achieved maturity.

Also, in the upcoming space of 5 -10 years in India the most viable H 2 production shall be either blue or green. The focus in the analysis done in this segment shall focus upon the green hydrogen production in the country as per regions and states to evolve with most preferred locations in the country for developing low-cost green hydrogen.

Green hydrogen (H2) can be made at a cost of US$1/kg by 2030 in India. Reliance shall pursue this target before the turn of this decade and make India the 1 st country globally to achieve $1/1kg in 1 decade – “the 1-1-1 target for green H2”- Mr. Mukesh Ambani, Chairman & MD, Reliance Industries

Low carbon hydrogen production is still cost intensive, economic viability a concern

The Paris Agreement aims to limit the rise in average global temperature to “well below 2 °C” in this century as compared to pre- industrial levels. Achieving this will require substantial emissions reductions across all sectors. India being complaint to COP as well will have to work aggressively to reduce the emissions with H2 as an alternative

The global energy systems would require a profound transformation from one based largely on fossil fuel to an efficient renewable ecosystem with low-carbon systems. Globally, this shall lead to close to 90% reduction in carbon emissions. Interestingly RE is expected to contribute over 41% of the required emissions control and 13% through electrification additionally. For this to happen the current share of RE globally at 22% must rise to 65% by 2050. Wind & solar (accounted as variable RE) shall make a larger share of the transition globally.

Hydrogen could be the “missing link” in energy transition globally & in India as well

Hydrogen from renewable electricity shall enable the channelization of RE into sectors such as transport, building and industry . For India it is an important perspective as renewable capacities planned are on the higher side, till 2030 but in case of even 60-70% of planned capacity achievement shall witness impact onto development of green H 2 projects and its pace. Subsequently, the purpose of COP21 shall be adhered in a better manner as the country shall lower its carbon emissions effectively.

Hydrogen could thus play a key role in facilitating three positive outcomes: the decarbonization of these sectors; the integration of large amounts of variable renewable energy (VRE); and the decoupling of VRE generation and consumption through the production of transportable hydrogen.