Could India’s green hydrogen mission increase carbon emissions?

India’s ambitious Green Hydrogen Mission, backed by a Rs 400 crore R&D roadmap, aims to produce five million metric tons of green hydrogen annually by 2030. However, recent research warns that without strict energy accounting standards, the mission could inadvertently increase carbon emissions.

Green hydrogen could increase carbon emissions

Climate think tank ‘Climate Risk Horizons’ cautions that embodied carbon emissions from green hydrogen produced from grid-powered electrolysis could exceed those from conventional “grey” hydrogen produced from fossil fuels.

The report titled ‘Green Hydrogen: Promises and Pitfalls’ highlights that if green hydrogen is produced without stringent energy accounting standards, it could be worse for the climate than traditional grey hydrogen.

To achieve the target of producing five MMT green hydrogen every year by 2030, about 250 terawatt-hours of electricity will be required, which is about 13 percent of India’s current total electricity production. If some of this electricity comes from India’s coal-powered grid, it will add significant emissions to the atmosphere. It’s worth noting that 70% of India’s electricity production is dependent on coal.

The Ministry of New and Renewable Energy (MNRE) has announced emission limits for green hydrogen production, but the accounting and certification modalities are yet to be finalized. The thoroughness of this methodology will be crucial to ensure that green hydrogen does not include emissions from fossil fuel-fired electricity.

Strict regulations crucial for green hydrogen

Ashish Fernandes, CEO, Climate Risk Horizons, highlights the importance of strict accounting and security regulations for the mission. He suggests that it should use 100 percent new additional renewable energy that matches consumption on an hourly basis. If there are loopholes in the regulations, realistic reductions in carbon emissions will not be achieved.

The report also highlights how green hydrogen could harm India’s credibility internationally, reduce the industry’s access to export markets, and weaken public trust in the energy transition. To avoid these shortcomings, the carbon accounting methodology should include Scope 2 emissions to ensure that emissions from electricity use in the process of manufacturing green hydrogen are also accounted for.

Existing research conducted by the US shows that to ensure real carbon reductions, the power needs of electrolyzers must be matched with dedicated clean energy supplies on an hourly basis.

The clean energy produced from hydrogen electrolysis should also be additional to avoid depleting existing renewable energy supplies or renewable energy capacity planned to decarbonize the electricity grid.

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