Hydrogen Blending: Navigating India's Path To Cleaner Energy Future According to MarketsandMarkets Research, a Pune-based market research company, the hydrogen generation market in Inida is expected to reach USD 21.9 billion by 2030, at a compound annual growth rate (CAGR) of 11.1 pc between 2023 and 2030
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India is committed to become a leader in green hydrogen production and utilisation. With focus on sustainability and reducing carbon emissions, the country aims to leverage its abundant renewable energy resources to produce hydrogen through electrolysis, powered by solar and wind energy. The National Hydrogen Mission (NGHM) was launched in 2023 which supports the development of supply chains that can efficiently transport and distribute hydrogen. This includes the use of pipelines, tankers, intermediate storage facilities, and last leg distribution networks for export as well as domestic consumption. Under the NGHM, USD 2.1 billion is allocated to the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, which provides incentives for the production of green hydrogen. The mission aims to produce 5 MMTPA of green hydrogen by 2030.
According to MarketsandMarkets Research, a Pune-based market research company, the hydrogen generation market in Inida is expected to reach USD 21.9 billion by 2030, at a compound annual growth rate (CAGR) of 11.1 pc between 2023 and 2030. The global hydrogen generation market is projected to reach USD 295.8 billion by 2030, at a CAGR of 9.3 per cent between 2023 and 2030.
In January this year, National Thermal Power Corporation Limited (NTPC) commissioned India's first green hydrogen blending project. This blending has been started in the PNG network of NTPC Kawas township, Surat. The project is a joint effort of NTPC and Gujarat Gas Limited (GGL).
In January 2023, Adani Group has also initiated the blending of green hydrogen into the natural gas supplied for cooking in households across parts of Ahmedabad. Adani Total Gas, the city gas joint venture between the Adani Group and French energy giant TotalEnergies, has begun incorporating 2.2-2.3 per cent green hydrogen into piped natural gas supplies in Shantigram.
"We are fully committed towards building an environmentally sustainable operation and this project represents our ongoing dedication towards national infrastructure building for India to become energy independent by 2047," Suresh P Manglani, Executive Director & CEO, Adani Total Gas Ltd said in a statement.
Despite the efforts of the private sector and government, there are challenges with regards to infrastructure. The compatibility of existing natural gas pipelines and equipment with hydrogen is a critical consideration as India explores blending hydrogen with natural gas or transitioning to hydrogen as a primary energy source.
Nakul Sardana, Head-Technology & Strategy, Adani Total Gas said that current storage system are primarily designed for natural gas, which could limit hydrogen storage capacity and safety measures.
"While India has a foundational natural gas infrastructure, significant enhancements are required to support hydrogen blending effectively. A strategic approach involving technological upgrades, regulatory changes, and investment will be crucial for a successful transition to a hydrogen economy," he said.
Petroleum and Natural Gas Regulatory Board (PNGRB), the regulatory body has given approval for five per cent blending of green hydrogen with PNG to start with and the blending level would be scaled phase wise to reach 20 per cent. Green hydrogen when blended with natural gas reduces CO2 emissions keeping net heating content same.
Prashanth Nutula, Partner, Deloitte India said that the PNGRB is working to define a roadmap for the use of hydrogen in natural gas blending using the existing gas pipeline network and there are certain challenges that are needed to be addressed while evaluating hydrogen blending with natural gas. "Hydrogen causes embrittlement of the metal pipes used in transporting the gas, with potential cracks and failures arising due to hydrogen-blended NG transportation. Additionally, hydrogen burns quickly and at higher temperatures compared to the gas. Therefore, the existing burners, gas turbines, and other industrial equipment might need redesign or retrofitting to handle the blended gas mixture," he said.
Ramnath Vaidyanathan, AVP & Head, Environmental Sustainability, Godrej Industries Group seconded with Nutula and said that Safe storage and handling is another challenge as hydrogen is a lot more complicated to handle.
"India's natural gas infra needs to be significantly upgraded to accommodate high concentrations of hydrogen blending. Currently small amounts (<10 per cent) can be managed but you are looking at least USD 10 billion over the next decade just for upgradations to infra, compressors, storage, monitoring technology and safety systems. Hydrogen blending requires innovations in material science to prevent corrosion of pipelines. Lastly, even at the offtaker end, there has to be the necessary modifications to combustion technology to manage the blend," Vaidyanathan added. Apart from the infrastructural challenges, the cost of generating hydrogen acts as a significant bottleneck.
According to Dr. Prabhakaran, Dean Academics, KCG College of Technology, Chennai, a unit of Hindustan Group of Institutions, green hydrogen is more expensive than fossil-based hydrogen, and there is a need for investment in infrastructure for the production of hydrogen, transportation, storage, and distribution. On the same line speaking to Entrepreneur, Santanu Roy, Principal Advisor, GPS Renewables said, "The high cost of green hydrogen remains a significant bottleneck in its implementation, leading to skepticism about whether India can achieve these targets. To advance this goal, a major initiative has been launched through the PNGRB. Since March 2023, PNGRB has been collaborating with the World Bank to establish standards for blending hydrogen, including green hydrogen, with natural gas."