Small businesses can be the backbone of the green economy

The Union Cabinet has approved the Rs 17,490 crore National Green Hydrogen Project aimed at facilitating the production of hydrogen from renewable energy. Hydrogen, an essential industrial fuel, has many uses. Hydrogen can be used to produce ammonia, steel, cement, and power fuel cells that power buses and cars. Although the most cost-effective way to produce it is through the use of biofuels such as coal and natural gas, the process emits a large amount of carbon. Concerns about global warming and the steadily increasing acceptance of alternative fuels have fueled the world's interest in producing hydrogen from renewable sources such as solar and wind energy.  However, it is relatively expensive.  It costs between 0.9 and 1.5 dollars to produce one kilogram of hydrogen from coal.  But production from renewable energy sources may cost 3.5 to 5.5 dollars per kg.  Just as the cost of solar power in India is now lower than that of coal power, 'green hydrogen' or completely renewable. The new national plan aims to enable Indian entrepreneurs to produce green hydrogen and build infrastructure to transport it from major production centers to various locations for industrial use. The National Green Hydrogen Project is committed to funding the construction of electrolyzers that split water into hydrogen and oxygen using electricity. But the details are not available now. By 2030, the goals are to achieve at least 5 million metric tons of annual green hydrogen production, 125 GW of renewable energy capacity, associated transmission network, and 60-100 GW of electrolyzer capacity.

Because of its cost, green hydrogen currently accounts for less than one percent of global hydrogen production. India aims to become a global industrial and export hub for green hydrogen in the future. While this is a good aspiration, past experience raises doubts about whether India will be able to become a global high-tech manufacturing hub by 2030. Despite the policies, India has not been able to increase its exports of solar cells, semiconductors and components for wind power generation equipment. This is due to India's weak basic manufacturing base. The country is also unable to use global capital effectively. To realize its ambitions, India must strengthen its infrastructure of small-scale manufacturing and allied enterprises, rather than large-scale industries, which form the backbone of any green economy.

Although no fuel can be guaranteed to be 100% safe, green hydrogen has been proved to be safer than traditional fuels in several ways.Unlike traditional fuels, hydrogen has no harmful effects. On the other hand, a lot of traditional fuels are carcinogenic or contain potent carcinogens.

Although the green hydrogen market is still in its infancy, this renewable energy source already has five significant applications.

Residential and commercial heating systems, hydrogen feedstocks, energy storage, and heating systems, generating alternative fuels, fuel cell automobiles.