While India’s National Green Hydrogen Mission is certainly a step in the right direction, it should be noted that other countries are also taking active steps in prioritising the production of green hydrogen. Australia has identified this eco-friendly fuel as a priority, aiming to produce it for under USD 2 per kilogram. Similarly, the European Union has also adopted a clear strategy, aiming to develop hydrogen valleys, which will use offshore wind capacity of the North Sea to power electrolysers. Saudi Arabia has announced its intentions to enter the market using its vast solar power potential. The United States Department of Energy has launched its ambitious Earthshots initiative to reduce the cost of green hydrogen by almost 80 per cent to USD 1 per 1 kilogram in one decade also known as the “1 1 1” plan.
India’s target of reducing green hydrogen production cost to USD 1 per kilogram by 2030 is a very aggressive time frame. However, the country does have certain advantages such as large renewable energy resources and low electricity production costs, which puts it ahead of other countries. The ‘Harnessing Green Hydrogen’ report produced by NITI Aayog highlights the potential of green hydrogen as a market creation engine for the country, but it also highlights the need for urgency and action to achieve this as other countries are also taking active and aggressive action in similar directions. India’s target for cost reduction needs to be more ambitious and backed up with aggressive incentives and mechanisms, even more than those outlined in the green hydrogen policy. There is a need to combine and accelerate technological advancements and regulatory support in the sector to help accelerate the government’s National Green Hydrogen Mission if India aims to utilise its competitive advantage in the sector.