Green Hydrogen

• Vaid's ICS, Lucknow
• 22, Nov 2021

Topics Covered: Infrastructure- energy.

Context:

The Narendra Modi government’s National Hydrogen Mission is kick-starting with the Indian Oil Corporation (IOCL) floating a global tender to set up green hydrogen generation units at two of its big refineries in North India. IOCL is India’s largest commercial undertaking, operating the largest number of refineries in the country.

What is green hydrogen?

Hydrogen when produced by electrolysis using renewable energy is known as Green Hydrogen which has no carbon footprint.

• The hydrogen that is in use today is produced using fossil fuels, which is the primary source.
• Organic materials such as fossil fuels and biomass are used for releasing hydrogen through chemical processes.

Significance of Green Hydrogen

1. Green hydrogen energy is vital for India to meet its Nationally Determined Contribution (INDC) Targets and ensure regional and national energy security, access and availability.
2. Green Hydrogen can act as an energy storage option, which would be essential to meet intermittencies (of renewable energy) in the future.
3. In terms of mobility, for long distance mobilisations for either urban freight movement within cities and states or for passengers, Green Hydrogen can be used in railways, large ships, buses or trucks, etc

Applications of green hydrogen

1. Green Chemicals like ammonia and methanol  can directly be utilized in existing applications like fertilizers, mobility, power, chemicals, shipping etc.
2. Green Hydrogen blending up to 10% may be adopted in CGD networks to gain widespread acceptance.

Benefits

1. It is a clean-burning molecule, which can decarbonize a range of sectors including iron and steel, chemicals, and transportation.
2. Renewable energy that cannot be stored or used by the grid can be channelled to produce hydrogen.

What are the steps the Indian government has taken in the production of green hydrogen?

1. During the budget speech in February 2021, Finance Minister Nirmala Sitharaman announced the launch of the Hydrogen Energy Missionto produce hydrogen from renewable sources.
2. In the same month, state-owned Indian Oil Corporation signed an agreement with Greenstat Norway for setting up a Centre of Excellence on Hydrogen (CoE-H). It will promote R&D projects for the production of green and blue hydrogen between Norwegian and Indian R&D institutions/universities.
3. Recently, India and the US have set up a task force under the aegis of the Strategic Clean Energy Partnership (SCEP)to mobilise finance and speed up green energy development.

Facts for Prelims

Credit default swap

• It is an example of a credit derivative transactionwhere credit protection is bought and sold.
• In a Credit Default Swap (CDS), one party agrees to pay another party periodic fixed payments in exchange for receiving ‘credit event protection’, in the form of a payment, in the event that a third party or its obligations are subject to one or more pre-agreed adverse credit events over a pre-agreed time period.
• Typical credit events include bankruptcy, failure to pay, obligation acceleration, restructuring, and repudiation/moratorium.

National Productivity Council (NPC)

• Established by the Ministry of Commerce and Industry, Government of India in 1958, it is an autonomous, multipartite, non-profit organization.
• NPC is a constituent of the Tokyo-based Asian Productivity Organisation (APO), an Intergovernmental Body, of which the Government of India is a founder member.