Anish De, Global Head - Energy, Natural Resources & Chemicals (ENRC), KPMG International, and Anvesha Thakker, India Leader for clean energy, and Global Co-Lead for Energy Transition, Global Decarbonisation Centre, KPMG International, discussed the emergence of the green hydrogen economy and its impact on the global economy. Leaders in sustainability from KPMG explored the dynamics of this transformative shift, addressing both the hype and the tangible realities.
Grey hydrogen, a significant player in the hydrogen production landscape, is derived from natural gas through a process known as steam methane reforming (SMR). The starting point for grey hydrogen production is natural gas (methane, CH4). Natural gas is a readily available and cost-effective hydrocarbon resource that serves as the primary feedstock for this process.
The carbon dioxide (CO2) generated in the process is not captured in grey hydrogen production. This is a key differentiator between grey hydrogen and cleaner forms of hydrogen production.
Green hydrogen, produced through renewable energy sources, has gained considerable attention as a potential game-changer in transitioning to a low-carbon economy. It offers a promising solution to decarbonise various industries, including those considered "hard to abate," such as cement, steel, and petrochemicals.
The conversation assesses the balance between the buzz surrounding green hydrogen and its actual implementation. While there's tremendous optimism and investment in green hydrogen, challenges remain, primarily related to its cost competitiveness, which is still 2 to 3 times compared to conventional grey hydrogen (produced from fossil fuels). The discussion explores ongoing technological advancements and initiatives aimed at driving down the cost of green hydrogen.
The discussion also explored that green hydrogen holds substantial promise for India due to several key advantages that align with the country's unique strengths and energy needs.
India boasts a robust electricity grid infrastructure that has improved significantly in recent years. Green hydrogen production requires a stable and consistent source of electricity, which India's grid can provide. India is one of the global leaders in power infrastructure, boasting one of the largest power grids in the world. The availability of grid power allows efficient and reliable electrolysis processes to split water into hydrogen and oxygen.
The grid's stability ensures an uninterrupted green energy supply for hydrogen production, reducing the risk of downtime and production fluctuations.
India is rich in renewable energy resources, with abundant sunlight and wind across various regions. These resources are ideal for generating green electricity required for electrolysis, making India an excellent candidate for green hydrogen production. India's commitment to sustainable energy solutions has led to a significant focus on 'Biomass-based production of hydrogen' through a variety of innovative techniques.
Green hydrogen production from renewable sources significantly reduces greenhouse gas emissions, aligning with India's climate goals. India possesses a vast pool of skilled labour in the engineering, technology, and manufacturing sectors. These skilled professionals can contribute to developing, operating, and maintaining green hydrogen projects.
By investing in green hydrogen, India can reduce its dependency on imported fossil fuels, enhancing energy security. The country currently imports 85% of its oil and 50% of its natural gas, making it vulnerable to global price fluctuations and supply disruptions.
As green hydrogen gains prominence, India can reduce its reliance on imported fossil fuels, leading to reduced trade deficits and enhanced energy independence. In conclusion, the discussion on the Green Hydrogen Revolution shed light on the transformative potential of green hydrogen in the global economy and India.
As we move forward, it is clear that green hydrogen is a transformative force that will reshape industries, economies, and our approach to sustainability. Discussions like these pave the way for a greener and more sustainable future.
Moneycontrol journalists were not involved in the creation of the article.
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