India’s journey towards energy self-reliance is being significantly bolstered by the potential of hydrogen as a sustainable energy source. The hydrogen market outlook is promising, with key insights from industry experts and strategic national missions setting the stage for a transformative energy landscape.

Hydrogen Market Outlook

The global hydrogen market is experiencing a dynamic shift, primarily driven by advancements in green hydrogen technology and supportive policy frameworks. According to BloombergNEF, the levelized cost of hydrogen (LCOH2) has seen a slight increase due to inflation and higher financing costs. However, green hydrogen is expected to become competitive with grey hydrogen (produced from natural gas) in several key markets by 2030. This competitiveness is attributed to technological advancements and economies of scale, which are projected to reduce the cost of green hydrogen production significantly.

Green hydrogen, produced through the electrolysis of water using renewable energy, is set to undercut grey hydrogen as early as the end of this decade in major economies such as Brazil, China, India, Spain, and Sweden. This shift is crucial for decarbonizing industries and achieving net-zero targets, especially for a country like India, which has a large industrial base dependent on fossil fuels.

National Green Hydrogen Mission

India’s National Green Hydrogen Mission is a strategic initiative aimed at positioning the country as a global hub for green hydrogen production and export. Launched by the Indian government, this mission underscores the country’s commitment to reducing its carbon footprint and achieving energy independence. The mission includes various policy measures and financial incentives to promote the adoption of green hydrogen across different sectors, including transportation, industry, and energy storage. Key components of the mission involve the establishment of green hydrogen production facilities, the development of a robust hydrogen infrastructure, and fostering research and development in hydrogen technologies. The government has outlined specific targets to produce and utilize green hydrogen, which will play a crucial role in reducing greenhouse gas emissions and enhancing energy security.

The initial outlay for the Mission will be INR 19,744 crore, including an outlay of INR 17,490 crore for the SIGHT programme, INR 1,466 crore for pilot projects, INR 400 crore for R&D, and INR 388 crore towards other Mission components.

Green Hydrogen Targets

India has set ambitious targets for green hydrogen production to meet its energy and climate goals. The government aims to produce 5 million metric tonnes of green hydrogen annually by 2030. This target is supported by the development of renewable energy capacity, with a focus on solar and wind power, which are critical for producing green hydrogen.

To achieve these targets, India is investing in large-scale green hydrogen projects and forming strategic partnerships with global leaders in hydrogen technology. Additionally, the government is providing financial incentives such as subsidies, tax breaks, and grants to encourage private sector investment in green hydrogen infrastructure. These measures are expected to drive down the cost of green hydrogen production and make it more competitive with traditional fossil fuels.

Indian Oil’s Green Hydrogen Initiative:

IndianOil is the leading petroleum refining company of India with 11 of the 23 operating refineries. IndianOil refineries are the largest producer of hydrogen for the captive use. IndianOil R&D is pioneering the hydrogen research program amongst the oil & gas sector in the country for the past 2 decades.

Expanding its presence beyond the boundaries of conventional fuels, IndianOil R&D has state of the art research facilities covering the panorama of hydrogen production, storage and fuel cells, together aimed towards qualifying the triple test of efficiency, durability and economics. Moving ahead by building strong foundations with both industry and academia (national & international), IndianOil R&D is set to traverse towards scale-up, demonstration and commercial deployment of innovative hydrogen energy solutions for portable, stationary, off-road and mobility applications.

Hydrogen Production & Storage

Considering natural gas one of the key enablers to the hydrogen economy, IndianOil R&D is developing novel carbon capture technologies from various pathways including chemical, electrochemical, bio-chemical and electro-bio-chemical routes to convert brown hydrogen into grey hydrogen.

To overcome the barriers of hydrogen transportation, IndianOil is proposing a distributed hydrogen generation approach by developing aqueous phase methanol reforming solutions in conjunction with leading engineering company of the country and ably guided by the one of the best engineering institution. For addressing the CO2 menace, IndianOil is working on the tri-reforming concept of producing hydrogen using the methane and CO2 along with steam.

Realizing the importance of integrating the agrarian philosophy of the country with the need to develop clean renewable energy technologies, IndianOil is working with the leading institute for scaling up the biomass gasification technology aiming towards higher yields and efficiency of conversion.

Indian Oil R&D is also focusing research activities in hydrogen production by gasification technique through a variety of feedstock such as coal, biomass, petroleum coke, petroleum residue etc. In this direction experimental facilities have been set up at IndianOil R&D.

Realizing the importance of hydrogen storage, IndianOil R&D is following a multi-pronged approach to develop customized solutions for the Indian market. The development of Type III hydrogen storage cylinder with one of the leading engineering institutes in the country in going to offer significant opportunities to develop low cost indigenous hydrogen storage solutions in India. Further, IndianOil R&D is actively developing solutions for hydrogen storage through Metal Organic Frameworks for enhancing the storage capacities at room temperatures through innovative material science interventions.

Fuel Cells

State of the art research facilities have been setup at IndianOil R&D to undertake the R&D activities on both Polymer Electrolyte Membrane Fuel Cells (PEMFCs) and Solid Oxide Fuel Cells (SOFCs). With capabilities of developing low cost innovative materials to computational dynamics, stack development and engineering, IndianOil R&D is one of the leading labs in the country with capabilities of evaluating upto10 kW PEM fuel cells. Having commissioned India’s 1st fuel cell forklift last year (2019), IndianOil is running various collaborative programs with leading fuel cell institutes and technology developers for developing in-house solutions for various applications. With a vision of making affordable hydrogen based solutions, Indian Oil R&D is working towards harnessing refinery grade hydrogen for fuel cell application through fundamental research in impurity tolerant anode catalysts and high performance durable cathode catalyst. To develop solutions for low power stationary and automotive application, air cooled fuel cell test facility is also being set-up in the campus. The centre has also launched India’s first hydrogen powered fuel cell bicycle. IndianOil R&D has also set-up state of art test facility to develop indigenous low cost catalysts for SOFC and SOEC.

Electrolyser

IndianOil R&D is also working towards development of PEM and AEM-based electrolysers in-line with Prime Minister’s vision of making India a hub of green hydrogen export. With cutting edge research facilities to evaluate the performance of in-house catalysts and cells, IndianOil is taking giant leaps in both the fundamental and engineering innovations for durable and low cost green hydrogen generation.

IndianOil R&D is also working towards transformation of conventional thermo-chemical processes for CO2 capture, NH3 synthesis, CO2 to valuable products etc. to a more efficient and greener electro-chemical route.

Innovating Mobility-The Power of Fuel Cells

Fuel cell technology is emerging as one of the important spokes in the e-mobility paradigm. Hydrogen can be used as a fuel for Fuel Cells. The electrochemical reaction converts fuel (hydrogen) at anode and oxygen from the air at cathode to water and liberate electrical energy in the form of electrons. Fuel cells are highly efficient as compared to other mobility options. Fuel cells vehicles have inherent advantages of long range and lower refueling time as compared to battery vehicles. Hydrogen gas is compressed and stored onboard in cylinders, typically at a pressure of 350 bar.

IndianOil has initiated a scientifically designed program to undertake operational trials of 15 Fuel Cell buses powered by Green hydrogen on the identified routes in Delhi, Haryana and U.P. Under this program, first set of fuel cell buses were launched from India Gate. This project is the first ever initiative in India to dispense green hydrogen at 350 bar to operate fuel cell buses. IndianOil has also established a state-of-the-art dispensing facility at our R&D Faridabad campus that can refuel green hydrogen produced from electrolysis using solar PV panels. A cumulative mileage of more than 3 lakh kilometers will be covered across all buses for long term assessment of performance and durability of this new technology. The data thus generated through these rigorous trials will act as a national repository that will shape the future of zero emission mobility in the country powered by green hydrogen.