Ambani, Tata, Mahindra likely to come together for country’s new National Hydrogen Mission

Finance Minister Nirmala Sitharaman announced the National Hydrogen Mission during the Budget 2021-22 on February 1. India is planning to capitalize on one of the most abundant elements on earth — hydrogen.

The green energy source could also bring together some of India’s biggest companies like Reliance, Tatas, Mahindras, and Indian Oil.

According to Chaitanya Giri- a fellow of space and ocean studies with the Mumbai-based think tank Gateway House, the need of the hour is a coalition of stakeholders like the Hydrogen Council or the European Hydrogen Coalition. During an interview with Business Insider he said, “Companies like Indian Oil, the Tatas, the Mahindras, the Eicher — let them be a part of the coalition. Then speciality chemicals companies like Reliance can be also a part of it”.

What is the purpose of the Hydrogen Energy Mission?

India plans to build green hydrogen plants that will run on electricity produced by green energy sources and help reduce dependence on fossil fuels for mobility. They will provide grid-scale storage solutions, and provide feedstock for ammonia production.

To make hydrogen a feasible solution, India doesn’t need just fuel — it will need cars that can process it. It also needs fueling stations and technology to ensure it remains safe as Hydrogen is an explosive element by nature.

Demand for hydrogen is at around 6 metric tonne (MT) per annum, mainly from industry sectors, such as fertilizers and refineries. This can increase to around 28 MT by 2050 mainly due to cost reductions in key technologies and a push to reduce carbon footprint.

Hydrogen from renewables can be produced through various methods, one of them is to use renewable electricity to split water into hydrogen and oxygen in an electrolyser, according to the International Renewable Energy Agency.

Hydrogen from renewable sources can play a critical role in heavy-duty, long-distance transport. While battery-operated electric vehicles (BEV) will become competitive for heavy-duty transport, hydrogen production will be needed. It will also play a critical role in production of ammonia which is currently being produced from fossil-fuel based hydrogen.