Why is the demand for Green Hydrogen rising globally?

Our article explores the factors inspiring the growing demand for green hydrogen, international policies that encourage its adoption, and India’s potential as an exporter of this clean energy.

Green hydrogen

Table of contents:

Why is the demand of green hydrogen rising?

International policies for Green Hydrogen

India: Major Green Hydrogen exporter

In recent years, there has been a remarkable surge in the demand for green hydrogen across the globe. As countries strive to transition to low-carbon economy and combat climate change, green hydrogen has emerged as a promising solution. We are here to explore the reasons behind the rising demand for green hydrogen, international policies supporting its adoption and the potential for India to become a major exporter of this clean energy source.

Why is Green Hydrogen needed and why is the Demand Rising?

1 – Addressing Climate Change: Green hydrogen, produced through electrolysis powered by renewable energy sources, is a zero-emission fuel. It provides a clean alternative to fossil fuels, helping to reduce greenhouse gas emissions and combat climate change. As nations strive to achieve their climate goals, the demand for green hydrogen is on the rise.

2 – Energy Storage and Grid Balancing: Green hydrogen offers a viable solution for energy storage and grid balancing. Excess renewable energy generated during off-peak hours can be used to produce hydrogen through electrolysis. This hydrogen can then be stored and used to generate electricity during periods of high demand or when renewable energy generation is low. This flexibility makes green hydrogen a valuable tool for stabilizing the grid and integrating intermittent renewable energy sources.

3 – De-carbonizing Hard-to-Abate Sectors: Certain sectors, including heavy industries, aviation and shipping, face significant challenges in reducing their carbon emissions. Green hydrogen can play a crucial role in de-carbonizing these sectors by serving as a clean fuel or as a feedstock for producing synthetic fuels. The versatility of green hydrogen makes it an attractive option for industries seeking to reduce their carbon footprint.

International Policies for Green Hydrogen

a) – European Union Hydrogen Strategy: The European Union has recognized the potential of green hydrogen and has formulated a comprehensive Hydrogen Strategy. It aims to produce 10 million tonnes and import 10 million tonnes of renewable hydrogen in the EU by 2030. The strategy involves substantial investments, policy support and fostering international partnerships to promote the development and deployment of green hydrogen technologies.

b) – United States’ Commitment to Green Hydrogen: The United States is also taking significant steps to promote green hydrogen. The Biden administration has included green hydrogen as a priority in its infrastructure plans and has allocated substantial funds for research, development, and deployment. The U.S. Department of Energy (DOE) decided to make $7 billion funding to regional clean hydrogen hubs (H2Hubs) across the nation in addition to reduction of non-CO2 greenhouse gases. Furthermore, various states have set ambitious targets to accelerate the adoption of green hydrogen, driving the demand for this clean energy source.

Also read: A Guide to Startup India Schemes: Fund your business.

India’s Potential as a Major Green Hydrogen Exporter

1 – Renewable Energy Potential: India possesses abundant renewable energy resources, including solar and wind, making it well-suited for the production of green hydrogen. With its vast landmass and favorable climate conditions, India can tap into its renewable energy potential to produce large quantities of green hydrogen.

2 – Policy Support: The Indian government has shown its commitment to green hydrogen by announcing the National Green Hydrogen Mission. This mission aims to develop a roadmap for scaling up green hydrogen production and utilization in the country. It aims to make India a leading producer and supplier of Green Hydrogen in the world along with increasing export opportunities for Green Hydrogen and its derivatives. The government has also introduced various policies and incentives to encourage investment and research in green hydrogen technologies.

3 – Geographic Advantage: India’s strategic location provides a geographical advantage for becoming a major exporter of green hydrogen. Its proximity to energy-intensive countries in the Middle East and Southeast Asia positions India as a potential supplier of green hydrogen to meet their clean energy demands.

The rising demand for green hydrogen globally signifies the increasing recognition of its potential in driving the transition towards a sustainable future. As countries seek to de-carbonize their economies, green hydrogen offers a versatile and clean energy solution. International policies aim to create a favorable regulatory and investment environment, facilitate cross-border collaboration, and incentivize the production, distribution, and use of green hydrogen. By fostering international cooperation and coordination, these policies and initiatives aim to unlock the full potential of green hydrogen and contribute to a more sustainable and low-carbon future.

Also read: What is the CIF number for Indian Banks? How to find CIF Number?

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