India needs $ 500 b of investments for making the transition to hydrogen: BJP

 A spokesman of the ruling BJP Party has said that India would need $ 500 billion to make the energy transition from fossil fuels to hydrogen. 

Speaking at a webinar organized by the Trade Promotion Council of India on "Hydrogen: The key to a carbon-free future?", the keynote speaker, Gopal Krishna Agarwal, National Spokesperson-Economic Affairs, BJP, said: “India’s per capita energy consumption is 30% lower than the world average. This is likely to double in the coming years as India industrialises and becomes an attractive destination for setting up of manufacturing industries. Though there are numerous challenges at present related to the deployment of hydrogen energy, it has huge scope for private investment and can bring great rewards for the country such as ushering in energy security and decarbonisation. An investment of US$ 500 billion is required (emphasis added) to make this transition to hydrogen energy.

The government is coming out with a new Industrial Policy and a new Logistics Policy. These policies can have a clause on hydrogen. With these policies, many concerns such as those related to transportation and raw materials will be addressed, he added.

Sturle Pedersen, Chairman of the Board, Greenstat Hydrogen India Pvt Ltd. noted, “The International Energy Agency in 2050 predicted that green hydrogen will be more than 20% of the energy mix. It means India will produce a lot of renewable energy, but you cannot put it on the grid as the grid is almost exhausted and we have to find new ways and build new infrastructure. The Indian government can learn from other countries. Norway and other countries, which are doing well in the renewable sector, realise that the public and private sector have to work in collaboration with their research institutes and universities."

 

Shirish S. Garud, Director, Renewable Energy Technologies, TERI said, “Currently, India uses 6.9 million tonnes of hydrogen, particularly in fertilizers (44% consumption) and refineries (53% consumption) sector. If 10% of this comes from green hydrogen, that is going to create a huge market for India. Apart from these two sectors, hydrogen can be used in the steel industry (350-400 MT production by 2050 is estimated, double the current amount) and electric vehicles industry.

 

Representing the voice of industry, Umesh Sahdev, Executive Chairman, Hydrogenium Resources Pvt Ltd, said, “The International Solar Alliance created a totally different place for India in the renewable scenario. That model can be duplicated in hydrogen too. If we are able to create the Hydrogen alliance, where there will be sharing of technology and resources in the complete value chain of hydrogen, I think that is where the whole solution will come very handy.” 

Over 44% of India’s energy composition is based on coal – a fossil fuel causing climate hazard. Oil constitutes more than 25% in this composition. Currently, the oil prices are skyrocketing and India’s import dependence for crude oil is quite high, which is hurting its economy. Bioenergy accounts for 21% of this share, CNG is 5.8%, hydro-energy (where India has a large potential), nuclear and solar energy are very low in the country presently. This shows that we have a lot of scope for renewable energy sources like hydrogen & it will be a game changer for the energy sector.

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