India push for green hydrogen : TERI policy brief calls for pilot projects subsidies and SPVs ET Auto

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Introduction

The Indian government has set ambitious targets to reduce greenhouse gas emissions and transition to a low-carbon economy. One of the key strategies to achieve this goal is the development of green hydrogen, a clean and renewable energy source that can power various industries and transportation systems.

This SPV will be responsible for the development, financing, and operation of green hydrogen production facilities across the country.

The Need for a Competitive Green Hydrogen Market

India has set ambitious targets to become a net-zero carbon economy by 2070. To achieve this goal, the country needs to significantly reduce its reliance on fossil fuels and transition to cleaner energy sources. Green hydrogen, produced from renewable energy sources, offers a promising solution to this challenge. However, the current market structure in India is not conducive to the development of a competitive green hydrogen market. Key challenges: + Limited availability of renewable energy sources + High upfront costs of green hydrogen production + Lack of standardization and regulation + Limited demand for green hydrogen

The Proposed Approach

TERI’s policy brief proposes the creation of a Special Purpose Vehicle (SPV) to develop, finance, and operate green hydrogen production facilities across the country.

This would involve the use of green hydrogen, which could be produced from renewable energy sources such as solar or wind power.

Creating Special Purpose Vehicles (SPVs) for Sustainable Development

The Indian government has released a report that outlines a comprehensive plan for sustainable development, focusing on the creation of Special Purpose Vehicles (SPVs) dedicated to specific sectors. The report aims to promote green growth and reduce carbon emissions in various industries.

Key Recommendations

  • The creation of SPVs dedicated to specific sectors like iron and steel, fertilizers, shipping, and heavy-duty transportation. The use of green hydrogen to replace traditional carbon-intensive processes. Establishing a pilot greenfield plant to produce carbon-free steel in the iron and steel industry. ## Benefits of SPVs for Sustainable Development*

    • Benefits of SPVs for Sustainable Development

    The creation of SPVs dedicated to specific sectors can have numerous benefits for sustainable development. Some of the key advantages include:

  • Reduced carbon emissions: By replacing traditional carbon-intensive processes with green hydrogen, SPVs can significantly reduce carbon emissions in various industries.

    The Vision for Green Hydrogen

    The policy brief outlines a comprehensive vision for green hydrogen, which is expected to play a pivotal role in India’s transition to a low-carbon economy. The brief emphasizes the need for a coordinated approach to address the challenges associated with the production, transportation, and storage of green hydrogen.

    Key Objectives

  • Develop a robust and sustainable green hydrogen ecosystem in India
  • Promote the use of green hydrogen in various sectors, including transportation, industry, and power generation
  • Encourage the adoption of green hydrogen technologies and infrastructure

    • The Role of TERI

    TERI, the Tata Energy Research Institute, is a leading research organization that has been actively involved in promoting the development of green hydrogen in India.

    Green hydrogen can be produced from renewable energy sources like solar and wind power, while green ammonia can be produced from renewable energy sources and then converted into hydrogen. Both of these alternatives can help reduce greenhouse gas emissions and mitigate climate change.

    The Benefits of Green Fuels

    Green fuels offer several benefits, including reduced greenhouse gas emissions, improved air quality, and enhanced energy security. By using green fuels, the power sector can reduce its reliance on fossil fuels, which are a major contributor to climate change. This shift towards green fuels can also improve air quality, as fossil fuels emit pollutants that contribute to respiratory problems and other health issues.

    The Benefits of Exporting Green Products

    Exporting green products can have numerous benefits for India’s trade balance. Some of these benefits include:

  • Increased revenue from green product exports
  • Improved competitiveness in the global market
  • Enhanced reputation for India as a green economy
  • Creation of new job opportunities in the green sector
  • Contribution to India’s climate change mitigation efforts

    • The Role of TERI in Promoting Green Exports

    TERI, a leading research institute, plays a crucial role in promoting green exports from India. Through its financing mechanism, TERI provides support to Indian companies that want to export green products. This support enables companies to meet international standards and tap into new markets for green products.

    How TERI’s Financing Mechanism Works

    TERI’s financing mechanism is designed to support Indian companies in exporting green products.

    Scaling Up Green Infrastructure Projects

    The report emphasizes the importance of scaling up green infrastructure projects, which are critical for addressing climate change and promoting sustainable development. However, scaling up these projects requires careful consideration of several factors, including cost, market readiness, and government support.

    Key Considerations for Scaling Up

  • Cost: The initial cost of green infrastructure projects can be high, which may deter some governments from investing in them. However, the report suggests that the costs can be reduced through the use of green technologies and innovative financing mechanisms. Market Readiness: The report highlights the need for green infrastructure projects to be market-ready, meaning that they should be designed and implemented in a way that meets the needs of the private sector. This can help to increase the adoption of green technologies and reduce costs. Government Support: The report emphasizes the importance of government support for green infrastructure projects. This can include providing incentives, such as tax breaks or subsidies, to encourage investment in green technologies. ### Benefits of Scaling Up Green Infrastructure Projects**

    • Benefits of Scaling Up Green Infrastructure Projects

    Scaling up green infrastructure projects can have numerous benefits, including:

  • Reducing Greenhouse Gas Emissions: Green infrastructure projects, such as green roofs and green walls, can help to reduce greenhouse gas emissions by reducing the urban heat island effect and improving air quality. Promoting Sustainable Development: Green infrastructure projects can help to promote sustainable development by providing green spaces, reducing stormwater runoff, and improving water quality.

    The Rise of Green Hydrogen

    The world is shifting towards a low-carbon economy, and green hydrogen is at the forefront of this transition. As the demand for renewable energy continues to grow, the need for a sustainable alternative to fossil fuels becomes increasingly pressing. Green hydrogen, produced through the electrolysis of water using renewable energy sources, offers a promising solution.

    Key Benefits of Green Hydrogen

  • Zero Emissions: Green hydrogen production emits no greenhouse gases or pollutants, making it an attractive alternative to fossil fuels. Renewable Energy Source: Green hydrogen can be produced using renewable energy sources like solar, wind, or hydroelectric power.

    Overcoming India’s Green Hydrogen Challenges through Strategic Partnerships and Innovative Financing.

    The Need for a Structured Approach

    The Indian government has set ambitious targets for the production and consumption of green hydrogen, aiming to reduce carbon emissions and promote sustainable development. However, the country’s current energy landscape is characterized by a lack of infrastructure, inadequate policies, and limited public awareness, which hinders the growth of the green hydrogen market. Key challenges facing the green hydrogen market in India: + Limited availability of renewable energy sources + Insufficient grid infrastructure to support hydrogen production and transportation + Lack of standardization in hydrogen production and quality control + Limited public awareness and education about the benefits of green hydrogen

    Strategic Partnerships and Innovative Financing

    To overcome the challenges and create a green hydrogen market in India, TERI recommends the following strategic partnerships and innovative financing mechanisms:

  • Public-Private Partnerships (PPPs): Collaboration between government agencies, private companies, and research institutions to develop and implement green hydrogen projects. Green bonds: Issuance of bonds specifically designed to finance green hydrogen projects, offering attractive returns to investors while promoting sustainable development. Carbon credits: Trading of carbon credits to incentivize the production and consumption of green hydrogen, providing a financial incentive for companies to adopt sustainable practices. ## Sector-Specific Pilot Projects*

    • Sector-Specific Pilot Projects

    TERI also emphasizes the importance of sector-specific pilot projects to test and refine the green hydrogen market in India. These projects can be implemented in various sectors, such as:

  • Energy: Pilot projects for hydrogen production and storage in the energy sector, focusing on grid-scale applications. Transportation: Pilot projects for hydrogen fuel cell vehicles, exploring the potential of green hydrogen for transportation.

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