High Growth Prospects for Clean Hydrogen in India
India stands at the forefront of nuclear-powered green hydrogen generation, leveraging its abundant renewable energy resources and robust domestic manufacturing capabilities. The country's strategic position allows for substantial exploration and investment in green hydrogen, potentially revolutionizing its energy landscape. With a significant dependence on crude oil and coal imports, accounting for approximately 80% and 20% respectively, India sees green hydrogen as a promising indigenous and virtually limitless energy source that could significantly reduce reliance on traditional fossil fuels.
The Department of Atomic Energy (DAE) has embarked on a groundbreaking initiative to repurpose two experimental reactors into pilot plants dedicated to generating green hydrogen through nuclear power. One such reactor is the Indian High-Temperature Reactor (IHTR), a creation of the Bhabha Atomic Research Center. Originally designed for thermochemical water splitting, a process harnessing heat instead of electricity, the IHTR has the potential to produce approximately 7,000 kilograms of hydrogen, 18 megawatts of thermal energy per hour, and an impressive 9 million liters of desalinated water daily.
This strategic transformation in India's energy sector opens up remarkable opportunities for global companies operating in the Indian nuclear industry, particularly in hydrogen generation. The declining costs of renewables further incentivize the production of green hydrogen. Countries like India, blessed with abundant renewable energy sources, can potentially produce green hydrogen at a more competitive cost, catering to domestic industries and even exploring avenues for export to nations seeking to incorporate green hydrogen into their long-term energy portfolios.
What is Green Hydrogen?
Clean hydrogen, often referred to as green hydrogen, is derived through electrolysis, a process that yields no carbon dioxide emissions and only produces water as a byproduct. The production of green hydrogen is considered a promising environmentally friendly, reliable, and cost-effective energy source.
Nuclear reactors, both traditional and advanced, are seen as suitable for providing consistent heat and electricity, potentially opening new markets for hydrogen production. According to the Department of Energy, USA, a 1,000-megawatt reactor could produce up to 150,000 tons of hydrogen annually. his hydrogen could find regional applications in various sectors such as fertilizers, oil refining, steel production, material handling equipment, fuel cell vehicles, or even as carbon-neutral synthetic fuels.
The National Green Hydrogen Mission of India
The National Green Hydrogen Mission has been established with the goal of positioning India as the global hub for the production, utilization, and export of Green Hydrogen and its derivatives. This initiative aligns with India's aspiration for self-reliance through clean energy and aims to inspire a worldwide transition towards clean energy. The Mission is anticipated to drive significant decarbonization of the economy, reduce reliance on fossil fuel imports, and position India as a leader in technology and market aspects of Green Hydrogen.
To facilitate export opportunities, the Government of India will institute supportive policies and forge strategic partnerships. Designated consumers will be mandated to have a minimum share of consumption for green hydrogen or its derivative products, with the trajectory decided by the Empowered Group. The Mission will employ competitive bidding for the demand aggregation and procurement of green hydrogen and green ammonia.
The Ministry of New and Renewable Energy (MNRE) will establish a regulatory framework for the certification of Green Hydrogen and its derivatives produced from renewable sources. Under the Strategic Interventions for Green Hydrogen Transition (SIGHT), financial incentives of Rupees 17,490 crore until 2029-30 are proposed for the manufacturing of electrolysers and production of green hydrogen. Additional incentive schemes and programs will evolve as the Mission progresses based on market dynamics and technological advancements.
Quality and performance criteria set by the Government of India will determine eligibility for participation in competitive bidding. Pilot projects, including low carbon steel, mobility, and shipping projects, will receive designated outlays up to 2029-30. The Mission aims to identify and develop regions capable of supporting large-scale production and utilization of hydrogen as Green Hydrogen Hubs, with at least two such hubs planned in the initial phase.
An outlay of Rupees 400 crore up to 2025-26 will support the development of necessary infrastructure for these hubs and other projects. The Mission will also focus on establishing efficient supply chains for hydrogen transportation and distribution, encompassing pipelines, tankers, storage facilities, and last-leg distribution networks for both export and domestic consumption.
Coordination efforts for regulations and standards development aligned with industry requirements are underway. A public-private partnership framework for Research and Development will be facilitated, involving a dedicated R&D fund with contributions from industry and government institutions. A coordinated skill development program, in collaboration with the Ministry of Skill Development & Entrepreneurship, is planned. The Mission will also cover public awareness, stakeholder outreach, and international cooperation.
The initial outlay for the National Green Hydrogen Mission is Rupees 19,744 crore, comprising Rupees 17,490 crore for the SIGHT program, Rupees 1,466 crore for pilot projects, Rupees 400 crore for R&D, and Rupees 388 crore towards other Mission components. MNRE will formulate scheme guidelines for the implementation of these respective components.
Latest developments regarding Green Hydrogen Adoption in India
Recent developments in India highlight the country's commitment to advancing the adoption of Green Hydrogen.
India, under the National Green Hydrogen Mission, allocates Rupees 455 crore for Research and Development projects focusing on establishing pilot plants for green hydrogen production in the iron and steel making process.
Hardeep Singh Puri, Minister of Petroleum and Natural Gas of India, highlights India's potential in green hydrogen development, citing existing demand. The private sector in India shows significant interest, investing in manufacturing facilities and securing contracts for green ammonia supply.
Larsen & Toubro Construction awarded packages valued at $2.779 billion to create renewable energy infrastructure for the world's largest green hydrogen plant at NEOM. NEOM Green Hydrogen Company (NGHC) aims for global export of green hydrogen in the form of green ammonia with a total investment of $8.4 billion.
The Ministry of New and Renewable Energy (MNRE) introduces Production-Linked Incentive (PLI) schemes under the Green Hydrogen ecosystem. PLI guidelines cover Green Hydrogen production and electrolysers, with a total budgetary outlay of Rs 13,050 crore for production and Rs 4,440 crore for electrolysers.
Bharat Petroleum Corporation (BPCL) plans to contribute to a 1-megawatt electrolyser manufacturing facility in India by 2025, utilizing Bhabha Atomic Research Centre's (BARC) technology for green hydrogen production.
These initiatives collectively demonstrate India's strategic efforts to advance the adoption of green hydrogen through research, investments, infrastructure development, and incentives.
Nuclear-Powered Hydrogen Demonstration Projects Across World
Around the world, several nuclear-powered hydrogen demonstration projects are underway, showcasing the potential of nuclear technology in green hydrogen production:
Nine Mile Point Nuclear Power Station in Oswego, NY, USA, has become the first nuclear-powered clean hydrogen production facility in the country. The produced hydrogen is used to cool the plant. Constellation Energy initiated hydrogen generation in February 2023. In addition, the utility is collaborating with NYSERDA on a separate project to power a fuel cell at the facility, which is expected to start supplying additional power to the grid in 2025.
At the Davis–Besse Nuclear Power Station in Oak Harbor, OH, USA, Energy Harbor is demonstrating a low-temperature electrolysis system. The project aims to validate the technical feasibility and economic advantages of clean hydrogen production, potentially paving the way for future large-scale commercialization opportunities. The hydrogen produced could be sold for various local manufacturing and transportation services, including fuel for a local bus fleet.
Prairie Island Nuclear Generating Plant in Red Wing, MN, USA, is the site of a pioneering project by Bloom Energy and Xcel Energy to demonstrate high-temperature electrolysis.
Several major global and international companies are actively pursuing green hydrogen generation. These include Shell, Linde, Air Liquide, Mitsubishi Heavy Industries, Enel, Siemens Energy, Hydrogenics, and Plug Power.
In terms of nuclear reactor technologies and hydrogen production, companies such as Idaho National Laboratory, Westinghouse Electric Company, NuScale Power LLC, and INL are making significant strides. These companies offer a diverse range of solutions, including advanced reactor technologies, nuclear propulsion, commercial nuclear components, fuel services, and strategic nuclear materials. They are also working on innovative applications for maritime propulsion, space technologies, decarbonized heat generation, water desalination, and hydrogen production
Green hydrogen, which is cost-competitive, has the potential to revolutionize the market, particularly in sectors that currently rely on grey hydrogen. The market share of green hydrogen will be influenced by its production cost relative to other hydrogen sources, the proportion of hydrogen cost in the final product cost, and any external efforts to stimulate demand in the short term. Based solely on cost-effectiveness, green hydrogen is projected to become the dominant player in the hydrogen market in the long run. By 2030, green hydrogen could play a significant role in both existing brownfield consumption and new greenfield investments. It’s estimated that by 2050, green hydrogen could satisfy nearly 94% of hydrogen demand, a significant increase from 16% in 2030. The total value of India’s green hydrogen market could reach $8 billion by 2030 and $340 billion by 2050.
This presents a significant opportunity for nuclear energy and technology to enter the green hydrogen generation sector. Nuclear power, with its potential for clean and efficient hydrogen production, could play a crucial role in this transition. Furthermore, this shift towards green hydrogen production opens up vast business opportunities for global green hydrogen companies and nuclear-powered hydrogen companies in India. These companies could leverage India’s increasing nuclear power production and its commitment to green energy to establish a strong presence in the burgeoning green hydrogen market. This could potentially lead to a win-win situation for both the environment and the economy.
The 5th edition of India Nuclear Business Platform (INBP) will take place in Mumbai this 19-21 November 2024. The industry meeting will feature all the officials and players across the Indian nuclear supply chain. For more information on this meeting including exhibition opportunities, click here
