Resource detail

'Green Hydrogen' policy is expected to support the Renewable Energy (RE) capacity addition targets of the country. At present, 'Green Hydrogen' is produced through electrolysis of water using renewable energy. On the other hand, 'Gray Hydrogen' which is the most commonly used is derived from fossil fuels. The 'Green Hydrogen' segment is becoming popular globally but cost of producing this gas remains high. Currently, fertiliser and oil gas sectors use hydrogen, however, due to flexible uses and low emissions the gas is being touted as the ultimate solution for clean energy needs of long distance transportation and electricity generation. In February, the Centre notified a "Green Hydrogen Policy" in line with its strong policy focus on renewable energy, a path of net zero energy transition by 2070. According to ratings agency ICRA, under the base case scenario of delivered renewable cost of procurement at Rs 3.5 per unit, levellised cost of production for a Green Hydrogen' is estimated to range between $5.5-6 per kg.