Why is it in the News?

The Ministry of New and Renewable Energy (MNRE) has announced a Rs-496-crore (until 2025-26) scheme to support pilot projects that either test the viability of green hydrogen as a vehicle fuel or develop secure supporting infrastructure such as refueling stations.

What is Green Hydrogen?

• Green hydrogen is a form of hydrogen gas produced through a process called electrolysis, where water (H2O) is split into hydrogen (H2) and oxygen (O2) using electricity.
  • The electricity used in this process is generated from renewable sources such as solar, wind, or hydroelectric power, hence the term "green" hydrogen.
• Unlike conventional methods of hydrogen production, which often rely on fossil fuels and emit greenhouse gases, green hydrogen production is considered environmentally friendly because it doesn't generate carbon dioxide emissions.
  • It can be used as a clean energy carrier in various sectors, including transportation, industry, and energy storage.
• The production of green hydrogen is still relatively expensive compared to other forms of hydrogen production, but ongoing advancements in renewable energy technologies and electrolysis processes are expected to reduce costs and increase the viability of green hydrogen as a sustainable energy source in the future.

India's Push for Green Hydrogen in the Transportation Sector:

• India is aggressively pushing for the adoption of green hydrogen in its transportation sector:
• Major Indian commercial vehicle manufacturers like Tata Motors, Volvo Eicher, and Ashok Leyland are intensifying their efforts to develop hydrogen-powered trucks and buses.
• Simultaneously, Indian energy companies are ramping up efforts to increase the production of green hydrogen while striving to decrease costs, making it competitive with other fuels.
• Given its vast and expanding market for both vehicles and energy, India stands poised to reap substantial benefits from widespread green hydrogen adoption as a vehicular fuel.
• India anticipates numerous advantages from this transition, including mitigating pollution, achieving climate objectives, and reducing reliance on expensive fossil fuel imports.
• Moreover, India views this shift as a significant business opportunity, aiming to establish itself as a global hub for the production and export of green hydrogen.

Scheme for Use of Green Hydrogen in the Transport Sector:

• The Scheme for Use of Green Hydrogen in the Transport Sector focuses on several key objectives:
  • Validating the technical feasibility and performance of green hydrogen as a transportation fuel.
  • Evaluating the economic viability of vehicles powered by green hydrogen.
  • Demonstrating the safe operation of hydrogen-powered vehicles and refueling stations.
• Under the scheme, the Ministry of Road Transport & Highways will designate a scheme implementation agency responsible for inviting proposals for pilot projects.
• Once selected, the chosen company or consortium will serve as the project's executing agency and must complete the pilot project within a two-year timeframe.
• To support these initiatives, the Ministry of New and Renewable Energy (MNRE) will consider approving viability gap funding (VGF) based on the recommendations of a Project Appraisal Committee.
  • The VGF amount will be determined by assessing the specific needs, merits, and feasibility of each project.

Advantages of Green Hydrogen in the Transportation Sector:

• Hydrogen Internal Combustion Engine (ICE) vehicles utilize hydrogen through combustion, akin to traditional diesel and petrol vehicles, but without emitting carbon.
• Hydrogen Fuel Cell Electric Vehicles (FCEVs) convert hydrogen electrochemically into electricity, leaving water as the sole byproduct, offering a clean and efficient alternative.
• While hydrogen ICE vehicles emit no carbon, studies indicate that converting hydrogen into electricity in a fuel cell is more energy efficient than burning it.
• Unlike Battery Electric Vehicles (BEVs) where the battery is heavy, hydrogen FCEVs are typically lighter due to hydrogen being a lighter element.
• This lightweight characteristic of hydrogen fuel cell technology makes it particularly promising for heavy-duty trucks, providing a viable alternative to EV battery technology.
• Green hydrogen presents a significant opportunity to reduce carbon emissions in the transportation sector without compromising revenue-generating payload capacity, addressing both environmental and economic concerns.

Challenges to the Large-Scale Adoption of Green Hydrogen in the Transportation Sector:

• Cost Prohibitions: The production cost of green hydrogen remains high, posing challenges to its viability as a fuel option.
  • To compete with Battery Electric Vehicles (BEVs), the cost of green hydrogen needs to be reduced to between $3 and $6.5 per kilogram by 2030.
  • Retail green hydrogen prices in California reached as high as $30 per kilogram in 2023, underscoring the current cost disparity.
  • However, ongoing technological innovations and scale-up efforts are expected to drive cost reductions soon.
• Insufficient Infrastructure: Building hydrogen fueling stations for trucks can cost up to 72% more than those for battery electric trucks, according to the California Transportation Commission.
  • Challenges with supply complications and market factors have led to the closure of hydrogen refueling stations, exemplified by Shell's recent decision in California.
• Storage and Transportation Challenges: Hydrogen storage requires high-pressure cylinders, which are costly and pose technical challenges.
  • Existing natural gas pipeline infrastructure is unsuitable for transporting hydrogen.
  • Specialized cylinders capable of safely storing green hydrogen are under discussion, necessitating infrastructure development.
• Handling and Safety Concerns: Hydrogen's flammability necessitates stringent safety protocols and infrastructure at refueling stations.
  • Developing robust safety standards is imperative before widespread adoption can occur.
• Long-Term Viability: Advancements in battery technologies are continuously improving the weight and efficiency of EV batteries, potentially challenging the long-term viability of green hydrogen-powered vehicles, particularly in heavy-duty commercial applications.