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GREEN HYDROGEN CORRIDORS

UPSC CURRENT AFFAIRS | NITI AAYOG BATS FOR SETTING UP OF GREEN HYDROGEN CORRIDORS | 01ST JULY | ECONOMIC TIMES

/ July, 2022, UPSC Daily Current Affairs

SYLLABUS SECTION: GS III (ENVIRONMENT AND ECOLOGY)

WHY IN THE NEWS?

Recently, government think-tank NITI Aayog has proposed setting up green hydrogen corridors and providing grants and support to entrepreneurs to promote its production, storage and export.

  • A report title ‘Harnessing Green Hydrogen – Opportunities for Deep Decarbonization in India’, by NITI Aayog has been release recently.

MORE DETAILS:

  • NITI Aayog also said there is a need to facilitate investment through demand aggregation and dollar-based bidding for green hydrogen. Green hydrogen is produce by electrolysis of water using renewable energy or from biomass.
  • Green hydrogen can help India significantly reduce its dependence on import fuel and, hence, inter-ministerial interventions are require to promote the production and the usage of green hydrogen.

PATHWAYS TO TRANSISION TOWARDS GREEN HYDROGEN:

GREEN HYDROGEN CORRIDORS

India can target the following areas to make a successful transition to green hydrogen.

  • Both near-term and long-term policy pathways to reduce the cost of green hydrogen need to be encouraged to enable cost competitiveness against alternatives.
  • A cost-competitive green hydrogen is bound to lead to market creation. But the government can also encourage near-term market development by identifying industrial clusters and enacting associated viability gap funding and mandates.
  • An emerging green hydrogen economy means opportunities around research and development and manufacturing of components such as electrolysers and fuel cells, crucial to enabling the industry to develop and scale.
  • A globally competitive green hydrogen industry also leads to prospects of exports of green hydrogen and hydrogen-embedded low-carbon products such as green ammonia and green steel.
TOWARDS A NATIONAL ACTION PLAN ON GREEN HYDROGEN
  1. A detailed roadmap focused on all aspects of ‘Green Hydrogen’.
  2. Intervene on the supply-side to reduce the cost of green hydrogen to $1/kg.
  3. Establish mandates and provide incentives to achieve a green hydrogen production capacity of 160 GW.
  4. Build manufacturing capacity totalling 25GW by 2030 coupled with supportive manufacturing and R&D investments
  5. Initiate green hydrogen standards and a labelling programme
  6. Promotion of exports of green hydrogen and green hydrogen-embedded products through a global hydrogen alliance
  7. Facilitate investment through demand aggregation and dollar-based bidding for green hydrogen
  8. Encourage state-level action and policy making related to Green Hydrogen
  9. Encourage capacity building and skill development
  10. Construct an inter-ministerial governance structure

SOURCE: ECONOMIC TIMES