Steel, transport, shipping | India reveals details of $177m hydrogen-usage pilot project program. Projects will demonstrate new uses of H2 — with long-term reduction of fossil-fuel imports in mind.

India has allocated a substantial budget of 14.66 billion rupees (equivalent to $177 million) for its hydrogen pilot program, with a particular focus on applications in steelmaking and transportation, including shipping. The Minister for New and Renewable Energy, RK Singh, made this announcement during a recent conference titled "Green Hydrogen Pilots in India," hosted by the state-owned power company NTPC. Singh emphasized that transitioning from fossil fuels to hydrogen is crucial for reducing India's reliance on energy imports.

Singh expressed concerns about India's historical role as a major energy importer, highlighting the potential for a significant increase in import bills if no action is taken. The Ministry of New and Renewable Energy has outlined a budget distribution, allocating 4.56 billion rupees for hydrogen pilots in the steel industry, 4.95 billion rupees for transportation, 1.15 billion rupees for shipping, and 4 billion rupees for unspecified "other projects," which may include power generation and energy storage initiatives.

Singh is optimistic about the transformative potential of hydrogen in the steel sector, proposing a shift away from fossil fuels. He pointed out that India is one of the world's largest steel producers but heavily relies on importing coking coal. He advocated for a simpler process—direct reduction using hydrogen—as the way forward.

Regarding transportation, Singh emphasized that electric mobility is not suitable for long-distance heavy transport, asserting that hydrogen or ammonia is the solution. However, it's worth noting that some truck manufacturers in Europe are pursuing battery-electric heavy-duty vehicles, suggesting that hydrogen-powered options may be reserved for exceptionally heavy loads.

Singh also anticipates a green shift in world shipping within approximately the next decade, necessitating India's readiness for increased demand for green hydrogen-based fuels. The International Maritime Organization has set targets to have 5-10% of global shipping's energy consumption come from technologies with zero or near-zero emissions by 2030.

While no specific funding has been allocated for hydrogen in electricity generation, Singh indicated support for pilot projects in this sector to manage rising power demand, which has grown by 21% year-on-year, while also reducing emissions. Despite India's significant share of wind, solar, and other renewable energy sources on the grid (30.2%), over half of the country's electricity still comes from coal and natural gas. To address intermittent generation and reduce reliance on fossil fuels, new energy storage technologies will need to be introduced.

Singh mentioned the development of gas turbines capable of running on hydrogen or ammonia and expressed India's ambition for technology demonstrated in government-funded pilot hydrogen-to-power projects to compete in the electricity market. This approach aims to reduce the need for large-scale lithium battery imports, as India seeks to establish its own manufacturing capacity.

It's worth noting that India currently imports lithium and lithium-ion batteries, primarily from Hong Kong and China, incurring substantial costs. However, recent discoveries of lithium deposits in the state of Jammu and Kashmir, although in a disputed region, have prompted the government to pass a law allowing the auctioning and mining of these reserves.

Finally, India is in the process of developing a comprehensive roadmap for hydrogen research and development. This roadmap will delineate high-priority technologies for both the short and long term. Additionally, the government is considering mandating industries to transition from gray hydrogen or its derivatives to greener alternatives, further reinforcing its commitment to a sustainable energy future.