Green Hydrogen Economy: Empowering India's Future with Nuclear Integration
India's ambition to achieve Net Zero emissions by 2070, coupled with the escalating demand for energy as seen in a 25% projected increase in energy use by 2030, necessitates a transition to sustainable technologies. With over 40% of primary energy needs imported annually, valued at USD 90 billion, there is a compelling need to reduce reliance on fossil fuels, particularly in sectors like mobility and industrial production.
In response to this challenge, the National Green Hydrogen Mission outlines a comprehensive plan to establish a Green Hydrogen ecosystem, capitalizing on India's renewable energy and land resources. As global demand for Green Hydrogen and its derivatives rises in the pursuit of Net Zero, India has a unique opportunity to position itself as a leading producer and exporter.
The integration of nuclear hydrogen production further strengthens this initiative. By harnessing nuclear energy, India can enhance its capacity for large-scale Green Hydrogen production, contributing to a more sustainable energy mix. This strategic move aligns with the global shift towards green fuels, mitigating geopolitical vulnerabilities associated with fossil fuels and addressing supply chain disruptions. The convergence of the National Green Hydrogen Mission with nuclear hydrogen production reinforces India's potential to play a pivotal role in the international trade of Green Hydrogen, Green Ammonia, and Green Methanol.
Green Hydrogen holds the potential to be a crucial factor in fostering low-carbon and self-reliant economic pathways, serving various purposes such as a fuel or industrial feedstock. Here are some key sectors where green hydrogen can find significant utilization:
Steel Production
The steel production sector stands as a promising candidate for the integration of Green Hydrogen, replacing conventional fossil fuels. The incentivization of carbon credits and the implementation of market barriers for carbon-intensive steel are anticipated to further bolster the feasibility of Green Hydrogen-based steel.
The National Green Hydrogen Mission is poised to play a pivotal role in augmenting efforts to enhance low-carbon steel production capacity. Acknowledging the current higher costs associated with Green Hydrogen, steel plants can initiate the transition by incorporating a modest percentage of Green Hydrogen into their processes. This blending ratio can be incrementally augmented as cost dynamics improve and technological advancements unfold. Additionally, upcoming steel plants should be designed with the capability to operate using Green Hydrogen, ensuring their participation in emerging global low-carbon steel markets. Ambitious greenfield projects aspiring for 100% green steel will also be taken into consideration. The integration of nuclear hydrogen production into this scenario adds another layer of resilience and sustainability to the steel industry. By harnessing nuclear energy for hydrogen production, steel plants can further enhance their low-carbon credentials.
Long-Haul Freight and Heavy-Duty Vehicles (HDVs)
To capitalize on Hydrogen's advantages for heavy-duty, long-haul vehicles, the National Green Hydrogen Mission introduces the concept of Hydrogen Highways, designating specific routes where Green Hydrogen production projects, distribution infrastructure, and refueling stations will be strategically established. These Hydrogen Highways aim to facilitate the operation of Hydrogen-fueled inter-state buses and commercial vehicles.
The mission proposes a phased deployment of Fuel Cell Electric Vehicle (FCEV) buses and trucks on a pilot basis, with financial assistance provided to address the viability gap, especially during the initial years when FCEVs may have relatively higher capital costs. The insights gained from these pilot projects will directly benefit inter-city bus and truck operators, including State Transport Undertakings, by providing practical experience with Hydrogen fuel cell vehicles and refueling technologies
Shipping and Port Operations
Shipping and port operations are identified as pivotal sectors driving the anticipated surge in Green Hydrogen demand and trade. The maritime transport and port industries present significant opportunities for decarbonization by adopting Green Hydrogen or its derivatives, including Green Ammonia and Green Methanol, as fuels for propulsion and various operations. The envisioned prospects encompass the establishment of Green Hydrogen/Ammonia refueling hubs at Indian ports, deployment and operation of vessels powered by Green Hydrogen/Ammonia, utilization of these fuels for zero-emission technologies in vehicles and terminal equipment at ports, and the development of supply chains to support future exports of Green Hydrogen/Ammonia from India.
As part of this initiative, the Shipping Corporation of India, or its successor private entity in case of disinvestment, commits to retrofitting a minimum of two ships to run on Green Hydrogen or other Green Hydrogen-derived fuels by 2027. Additionally, plans include the setup of Green Ammonia bunkers and refueling facilities at a minimum of one port by 2025, with the aim of expanding these facilities to all major ports by 2035. This specific timeline underscores the mission's commitment to advancing sustainable practices within the shipping and port sectors.
Aviation sector
The aviation sector exhibits the highest carbon emissions intensity among all modes of transportation. With increasing income levels, a surge in tourism, and growing consumer demand for expedited deliveries, carbon emissions from aviation are poised for exponential growth. Projections indicate that by 2050, aviation will become the second-largest contributor to freight transport-related CO2 emissions in India, experiencing a 100-fold increase. A parallel trajectory of substantial growth is anticipated for passenger aviation.
To address this environmental challenge, various technology options for decarbonizing the aviation sector are under consideration, including 1) battery electric, 2) hydrogen-powered fuel cell, 3) hydrogen-powered turbine, 4) sustainable aviation fuels derived from waste and agriculture residues, and 5) electrolytic hydrogen-based synthetic fuels. Each of these options represents a distinct pathway to reduce carbon emissions in the aviation industry, aligning with the imperative to achieve sustainability goals in this high-impact sector.
Methanol
Methanol serves as a key ingredient in the production of various chemicals and solvents, with the potential to broaden its applications as a transport fuel in the form of different blends, marine fuel, and for cooking purposes. The production of methanol heavily relies on hydrogen as a primary feedstock, with India presently generating the majority of its hydrogen from natural gas. The country currently produces only 13% of its methanol consumption, and there is a policy objective to enhance production through the Indian Methanol Economy program. The future demand for methanol hinges on the growing need for specialty chemicals and solvents, coupled with the success and implementation of the Indian Methanol Economy program.
Ammonia
Ammonia, a compound comprising nitrogen and hydrogen, holds significant importance in the chemical sector. Currently, the predominant source of hydrogen feedstock for ammonia production is derived from natural gas. However, there is a viable opportunity to shift towards a more sustainable approach using renewable-based electrolysis to produce green ammonia.
The applications of ammonia are diverse and include its crucial role in the production of nitrogen-based fertilizers, such as urea, and complex fertilizers like diammonium phosphate (DAP). The increasing global demand for nitrogenous fertilizers, driven by population growth and the rising need for food, is expected to grow at a compound annual growth rate (CAGR) of 3 percent over the next decade.
Ammonia, beyond being a feedstock for fertilizers, can be directly applied to soil either in anhydrous form or as aqua-ammonia (ammonia dissolved in water). While anhydrous ammonia is easily accessible and applicable to soil, careful consideration is required for its transportation and storage. Aqua-ammonia, being safer than the anhydrous form, provides a more convenient application as it does not require deep injection.
Furthermore, ammonia exhibits potential as a hydrogen carrier and fuel for shipping, showcasing its versatility and contribution to sustainable practices in various sectors.
Refining
In the petroleum refining industry, hydrogen plays a critical role, particularly in the desulphurization process of products like diesel and petrol. The demand for hydrogen in this context is influenced by two key factors. Firstly, it is linked to the demand for petroleum products, which is expected to escalate significantly unless efficiency measures and low/zero-carbon alternatives are widely adopted. Secondly, the level of hydrogen required for desulphurization is directly impacted by stringent policy measures aimed at limiting the sulphur content in petroleum products. The more rigorous these standards, the higher the demand for hydrogen in the desulphurization process.
Potential future application – Electrofuels for ground transportation
Electrofuels, or e-fuels, primarily rely on hydrogen generated through water electrolysis. Examples include methanol and ethanol, which can either be blended with or entirely replace traditional fossil fuels, subject to necessary design modifications in vehicles. Serving as a complementary technology to biofuels, e-fuels address existing limitations related to feedstock and applicability in specific end-use cases. In the short term, e-fuels can be effectively used as blended fuels alongside petrol or diesel. Looking ahead, there is significant long-term potential for their utilization in engines designed for M100/E100, indicating a potential transition towards fuels with 100 percent methanol or ethanol content.
The Hydrogen Demand Outlook
The hydrogen demand suggests a potential increase of over fourfold from 2020 to 2050, reaching approximately 29 million tonnes by 2050. Although the long-term drivers are anticipated to be the steel and heavy-duty trucking sectors, the immediate surge in demand is expected to come from more established markets, particularly in industrial feedstock such as ammonia and refining. The increasing consumption in these sectors could lead to a demand of nearly 11 million tonnes per year by 2030, compared to the current demand of approximately 6 million tonnes.
However, amid these opportunities, the integration of nuclear hydrogen production stands out as a critical strategy to further enhance sustainability and resilience in these sectors. Nuclear hydrogen production provides a low-carbon and reliable source of hydrogen, contributing significantly to the reduction of carbon emissions. Its potential application in these sectors, especially in refining and steel production, offers an avenue to address both the rising demand for hydrogen and the imperative to achieve net-zero emissions. Global enterprises specializing in nuclear hydrogen production technologies can explore a receptive market in contributing to India's decarbonization endeavors. Moreover, there is potential for collaborative ventures to establish hydrogen infrastructure, encompassing refueling stations and production facilities. As India charts its course towards a sustainable energy future, the integration of nuclear hydrogen production emerges as a strategic avenue to complement and magnify the impact of ongoing initiatives, fostering a more sustainable and resilient industrial landscape.
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
