Green hydrogen, an environmentally friendly and sustainable alternative to conventional hydrogen production methods, has garnered significant attention as the world shifts towards a low-carbon future.
India, recognizing the potential of green hydrogen in reducing carbon emissions and promoting energy independence, has introduced an ambitious green hydrogen policy. The government’s commitment to advancing green hydrogen production is evident through various initiatives and incentives aimed at expediting its adoption. [Resource]
Who is ES Ranganathan?
Mr. ES Ranganathan boasts extensive experience spanning over 34 years in India’s Oil and Gas sector. With remarkable leadership and a profound industry understanding, he served as Director (Marketing) at GAIL (India) Limited, driving corporate plans, policies, and strategies for enhanced profitability and efficiency.
Throughout his career, Mr. ES Ranganathan has demonstrated dedication to devising and implementing business solutions in the Oil and Gas industry. He has excelled in Pipeline Projects, Operations and Maintenance, Business Information Systems, and Business Development, adeptly navigating dynamic market landscapes.
ES Ranganathan remarks, “By establishing a supportive policy framework, India aims to encourage investments and partnerships in the renewable energy sector, thereby fostering a sustainable environment for green hydrogen production.” However, one significant obstacle between planning and execution remains: cost.
The cost of green hydrogen has been a key factor affecting its widespread adoption. Nonetheless, with substantial technological advancements and economies of scale, the cost of green hydrogen is expected to decrease significantly in the near future.
“To effectively compete with other energy sources and unlock the full potential of the National Green Hydrogen Mission, India must leverage a combination of technological advancements and regulatory support to drive cost competitiveness and expedite our journey towards a sustainable energy future,” says ES Ranganathan, former marketing director of GAIL and an expert in the Oil and Energy industry.
Currently, the manufacturing cost of green hydrogen, which relies on renewable energy rather than fossil fuels, stands at approximately 300 rupees per kg in India. To further incentivize green hydrogen production and mitigate carbon dioxide emissions, the Indian government plans to introduce a $2 billion incentive scheme this year. Under this scheme, green hydrogen fuel producers will receive incentives amounting to at least 10% of their production costs.
Specifically, the government will offer incentives worth a minimum of 30 Indian rupees per kg for green hydrogen fuel production. This initiative aims to drive the expansion of the green hydrogen sector and position India as a significant player in green hydrogen exports.
“Upon comparing the cost of green hydrogen in India with global benchmarks, it becomes evident that the country is steadily approaching competitiveness,” explains ES Ranganathan. The cost of green hydrogen has also experienced a notable decline in various other countries worldwide, making it an increasingly viable and economically attractive option for the energy transition. ES Ranganathan emphasizes the importance of scaling up green hydrogen production and fostering international collaborations to further reduce costs and accelerate its integration into global energy markets.
The future of green hydrogen appears promising, given the collective efforts towards technological innovations and cost reductions. The demand for clean energy solutions is steadily rising, driven by global commitments to combat climate change. Green hydrogen’s potential to decarbonize various sectors, including transportation, industry, and power generation, positions it as a crucial element in achieving a sustainable energy landscape.
ES Ranganathan feels positive about green hydrogen’s future development as a key component of the world’s energy transition. The implementation of supportive policies, investment incentives, and international collaborations is expected to drive the proliferation of green hydrogen projects. As the hydrogen economy evolves, green hydrogen is anticipated to play an integral role in realizing a greener and more resilient energy future.
India’s robust green hydrogen policy, coupled with global efforts, aims to accelerate the adoption of this eco-friendly energy source. As the cost of green hydrogen continues to decline and its applications expand, it is poised to play a critical role in the global endeavor to combat climate change and achieve a greener, more sustainable world.
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