Status Quo Mapping of Hydrogen: Production and Consumption in India

Together with the Federal Ministry of Economic Affairs and Climate Action (BMWK), Govt. of Germany, the Indo-German Energy Forum Support Office (IGEF-SO) together with Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ GmbH) published a report issuing a "Status Quo Mapping of Hydrogen Production and Consumption in India" in June of 2021. With Hydrogen being recognized as an energy vector, fuel and feedstock worldwide, Hydrocarbons play an important role in the decarbonization of the economy. As India's engagement with hydrogen as a fuel and energy carrier has an over fifteen-year history and became substantiated with the government's recent announcement of an official National Hydrogen Mission, the country is determined to develop a national production line and advance consumption of hydrogen from renewable energy sources. Hence, the report aims to capture the status quo of hydrogen production and consumption in India including stocktaking of various interventions by the Government, its utilities and other players to leverage on the work that has been done so far in India. Key findings show that the domestic hydrogen consumption in India currently amounts to approximately 6 Million tons, primarily based on the demand from Indian industry – chemical and refining. Furthermore, it was found that material production processes such as production of basic chemicals (ammonia for fertilizers, methanol, etc.) account for almost two-third of all consumption. In conclusion, it was determined that in order to achieve future goals for climate, especially as a part of India’s Nationally Determined Contributions (NDC), efforts are required to increasingly substitute Hydrogen produced from renewable sources in the industries where hydrogen is already used as a feedstock. This, however, depends on its availability, affordability and accessibility. Subsequently, the consumption of Hydrogen, needs to be expanded to include other sectors which have a high emission intensity such as long haul transport, steelmaking, cement production, energy storage, and more. This is perceived to have two benefits: First, it would allow these sectors to decarbonise. And second, it would also help India in reducing energy imports, increase the penetration of renewable energy and in decreasing harmful emissions and pollution.

For detailed insights into the report, please follow this link.