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.
- 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:
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
- A detailed roadmap focused on all aspects of ‘Green Hydrogen’.
- Intervene on the supply-side to reduce the cost of green hydrogen to $1/kg.
- Establish mandates and provide incentives to achieve a green hydrogen production capacity of 160 GW.
- Build manufacturing capacity totalling 25GW by 2030 coupled with supportive manufacturing and R&D investments
- Initiate green hydrogen standards and a labelling programme
- Promotion of exports of green hydrogen and green hydrogen-embedded products through a global hydrogen alliance
- Facilitate investment through demand aggregation and dollar-based bidding for green hydrogen
- Encourage state-level action and policy making related to Green Hydrogen
- Encourage capacity building and skill development
- Construct an inter-ministerial governance structure
Read more: UPSC CURRENT AFFAIRS
SOURCE: ECONOMIC TIMES