Green hydrogen has emerged as a vital solution as the globe wishes to reduce carbon emissions and switch to clean energy. This is produced by electrolysing water through the power of either solar or wind, as compared to grey hydrogen, which is produced from fossil fuels. This process involves zero emissions, thus rendering it a fully sustainable energy alternative. The diverse uses of hydrogen contribute to the molecule’s appeal, with applications to fertilizers, chemicals, refining, steel production, extending long-distance transportation, and energy storage.
However, the market for green hydrogen has not yet fully developed as an energy source. High production cost, shortage of infrastructure, and a multitude of technological setbacks have caused the large-scale penetration to be pushed back. In response to this, industry experts, innovators, and forward-looking companies are working on solutions that bring this clean molecule closer to widespread commercial use.
India’s Push Towards Green Hydrogen
India has also set a very ambitious target by 2030 under its National Green Hydrogen Mission to make 5 million tonnes a year of green hydrogen. The mission guarantees incentives for domestic manufacture of electrolysers, support for green hydrogen projects with subsidies, and creation of demand in industry through mandates. Strong policy support is encouraging companies to invest in new schemes, form technology alliances, and test business models that can both decrease costs and maximize production.
Oswal Energies’ Bold Step in Encouraging this Shift
The best example of this momentum is Ahmedabad-based Oswal Energies Limited, which has a proven track record in oil, gas, and clean energy engineering, procurement, and construction (EPC). With more than 250 projects executed across the world, the firm has now entered the green hydrogen space.
Oswal Energies has also invested ₹320 crore in a 20 MW green hydrogen project to be commissioned over two years. The project will consist of 0.5 MW to 5 MW modular units, with expected completion in 18–24 months’ time. The company recently received its first 1 MW electrolyser stack, as it began planning its way into scaling up hydrogen production. The produced green hydrogen will predominantly be for end-use industries like fertilizers, chemicals, and oil & gas, which are the biggest consumers of hydrogen in India.
Creating an End-to-End Value Chain
Oswal Energies stands out in its approach to creating an end-to-end value chain of green hydrogen. The company aims to integrate technology, storage, transportation, and project execution into one single entity so that green hydrogen is supplied economically and efficiently.
Speaking on the same, Ratan Bokadia, Managing Director of Oswal Energies, stated, “Oswal Energies has envisioned an outlay of ₹320 crore in the upcoming two years to establish green hydrogen projects. We aim to establish a complete value chain in the green hydrogen segment. This has been a major leap toward the sustainable energy future of India. But, on a big scale, the success of green hydrogen is not only dependent on its production but is also dependent on the capacity to store and transport hydrogen at scale.
The Role of Technology and Collaboration
Experts believe that technological innovation in electrolyser technology is key to cost reduction as it remains costly, with large capital outlay and limited efficiency. Cost can be lowered through design enhancements, increased manufacturing scale, and in-sourcing of components. Collaborations with international technology partners, as in the case of Oswal Energies, help in speeding up knowledge transfer and best practices’ adoption.
In addition, storage and transportation introduce a further level of complexity. Hydrogen is a light gas that must be compressed to high levels or liquefied, processes both of which are expensive and technically challenging. Partnerships in hydrogen logistics are taking companies towards more efficient and safer systems. Technologies, along with India’s abundance of renewable energy resources, should reduce the prices of production and delivery of hydrogen.
Why Scalability Matters
For green hydrogen to be cost-effective, it has to go beyond pilot schemes to a social scale. In a massive deployment, the electrolyser unit price will be reduced, and supply chains will be activated while attracting more investments in infrastructure. Long-term supply contracts could help to stabilize demand in sectors that heavily use hydrogen, comprising fertilizers and refineries, thereby increasing its production.
Challenges on the Road Ahead
Although progress is being made, some challenges must be overcome before green hydrogen can be commonly utilized:
High Costs of Electricity: The renewable electricity needs to be affordable and available in bulk for the production of hydrogen. Solar and wind intermittency further complicates matters.
Electrolyser Technology and Cost: Electrolyser technology is advancing, but it costs a lot. Inefficiency losses in the procedure also add to the cost.
Storage and Transportation Risks: Hydrogen storage will need to use high-pressure tanks or cryogenic systems, which are expensive and energy-intensive. Long-distance transport of hydrogen in a secure manner is still an issue.
Market Offtake Uncertainty: Companies need to be ready to transition to green hydrogen, which is expensive compared to grey hydrogen. In the absence of subsidies, carbon pricing, or regulatory requirements, demand would continue to be weak.
Infrastructure Development: Developing pipelines, distribution centers, and safety infrastructure demands extensive investment and coordination among stakeholders.
The journey to green hydrogen on a large scale at reasonable costs is filled with opportunities and challenges in equal measure. Companies like Oswal Energies are demonstrating that with investment, vision, and collaboration, India can be at the forefront of the green hydrogen revolution. By meeting cost, infrastructure, and scalability challenges head-on, the leaders and specialists of the industry are taking the globe to a future where hydrogen is not just a substitute fuel but also a mainstream clean energy source.
