Russia’s invasion of Ukraine over a month ago has severely impacted energy prices. As crude oil prices have hit multi-year highs and then slumped once more, many countries are concerned about increased energy expenditures. India, which imports 85 percent of its oil and 45 percent of its natural gas, is disproportionately affected by the swinging fortunes of fossil fuels.

But it’s not just the price of fossil fuels that has come under the scanner. Energy dependence of Europe on Russia has resulted in natural gas and Russian oil still not being sanctioned by European powers despite the latter’s actions. This strategic weakness due to energy security deficiency has now become a major concern for many countries.

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In this context, hydrogen is being seen as the perfect answer to these problems.

Hydrogen is the most abundant element found in nature. Until recently, the use of hydrogen did not have an environment-friendly dimension. Most of the hydrogen was extracted through a process called steam methane reformation (SMR) of natural gas.

The process emits a large amount of carbon dioxide and contributes to increasing carbon footprint. Depending on the method of extraction, the hydrogen extracted is named grey, brown, blue, yellow, turquoise and pink, among others.

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Hydrogen, unlike other renewable sources, can be used in the existing infrastructure meant for both natural gas and liquid fossil fuel.

But it is the green hydrogen -- hydrogen that is extracted without generating any net carbon emissions -- that is being urgently pursued by the world. Produced through the electrolysis of water, using renewable energy sources, green hydrogen is an essentially limitless and clean source of energy.

Green hydrogen is extremely expensive. But with investments pouring into improving technologies and establishing larger scale extraction models, companies and governments hope to drive the price of the fuel down to affordable levels.

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Where India stands

India, under the National Hydrogen Mission seeks to manufacture five million tonnes of green hydrogen by 2030, with the government ultimately aiming to bring down the cost of green hydrogen to $1 per kg.

The government also plans to promote the use of hydrogen with stipulations like a minimum of 10 percent green hydrogen use by refineries from 2023-24, with an increase to 25 percent over the next five years. Similarly, a 5 percent compulsory green hydrogen use threshold for fertiliser industries starting 2023-24, with a gradual increase to 20 percent over the next five years is also being planned.

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It is not just the government which is aggressively upscaling its hydrogen production. India’s largest company, Reliance Industries Limited, is also bullish on hydrogen.

“Green hydrogen is the best and cleanest source of energy, which can play a fundamental role in the world’s decarbonisation plans. Efforts are on globally to make Green Hydrogen the most affordable fuel option by bringing down its cost to initially under USD 2 per kg. Let me assure you all that Reliance will aggressively pursue this target and achieve it well before the turn of this decade,” said Reliance Industries Chairman Mukesh Ambani at the International Climate Summit 2021.

(Edited by : Shoma Bhattacharjee)