UPSC Relevance– Prelims Facts: China: ~50% global green hydrogen, ~85% ALK electrolysers,India target: 5 MT green hydrogen by 2030. GS II – Governance & IR: India’s National Green Hydrogen Mission (policy, industry, renewable integration),GS III – S&T, Environment, Economy: Electrolysers (ALK vs PEM), renewable energy, green hydrogen production
Why in the News?
Green hydrogen is rapidly emerging as the next frontier of clean energy, moving the spotlight from solar and wind. Hydrogen is essential for industrial applications like oil refining, ammonia, and methanol production. China, already a dominant player in solar PV, is now scaling up electrolyser production and green hydrogen plants, raising questions about its potential global dominance and the competitive landscape.
Background
The Rise of Green Hydrogen
- Most hydrogen today is produced from fossil fuels (grey hydrogen), contributing to carbon emissions.
- Green hydrogen is produced via electrolysis of water using renewable electricity, making it carbon-neutral.
- Electrolysers, like photovoltaic modules for solar, are central to green hydrogen production.
- Rapid technological progress in electrolysis, storage, transportation, and application is driving global adoption.
Electrolyser Technologies: Making Hydrogen from Water
Electrolysers are devices that split water into hydrogen (H₂) and oxygen (O₂) using electricity. The type of electrolyser determines how efficient it is, what kind of electricity it works best with, and how expensive it is.
1. Alkaline (ALK) Electrolysers
● Mature Technology: This is the older, well-established type.
● Cost: Relatively cheap to make and operate.
● Efficiency: Works well when electricity is steady, but efficiency drops if electricity supply keeps changing (like from solar or wind).
● Use: Widely used in industries already producing hydrogen.
Example: Imagine a factory that runs 24/7 with stable electricity — ALK electrolysers are perfect here.
2. Proton Exchange Membrane (PEM) Electrolysers
● Newer Technology: More modern, advanced design.
● Efficiency: Higher efficiency than alkaline, meaning it produces more hydrogen for the same amount of electricity.
● Purity: Produces very pure hydrogen, which is useful for fuel cells in vehicles.
● Flexibility: Can handle fluctuating electricity from renewables (solar/wind).
● Material: Needs precious metals like iridium and platinum, making it expensive.
Example: A solar or wind farm producing electricity irregularly can use PEM electrolysers effectively because they can adjust to changing power.
China’s Dominance in Green Hydrogen
Production Leadership
- By 2024, China produced 36.5 million tonnes of hydrogen; 1,20,000 tonnes was green hydrogen (~50% of global green hydrogen).
- Electrolysers: China controls ~85% of global ALK electrolyser manufacturing capacity, serving both domestic and export markets.
How China Established Dominance
- Cost advantage: Chinese ALK electrolysers are up to 45% cheaper for European hydrogen plants.
- Example: 1,000 Nm³/h (5 MW) ALK electrolyser in 2024 cost 6 million yuan ($167/kW), 20% lower than 2023.
- Supply chain integration: ALK electrolysers use nickel and steel, abundantly available in China.
- Rapid scaling & subsidies: Like solar PV, China leveraged state support, quick rollout, and mature supply chains.
- Global expansion: Companies like Guofu Hydrogen and Envision Energy are building electrolyser plants and green hydrogen facilities overseas.
Limitations
● PEM electrolysers depend on scarce metals, limiting cost reductions.
● Green hydrogen requires system integration tailored to hydrogen purity and application, making price competition insufficient alone.
Global Competition and Challenges
Emerging Competitors
● Countries such as Germany, Japan, South Korea, and EU members are actively developing local electrolyser production and hydrogen projects.
● National strategies aim to protect domestic industries, ensuring technology transfer and supply chain security.
Hurdles for China
● Regulatory scrutiny and trade restrictions make market entry more difficult than solar PV.
● Supply chain security concerns are heightened due to the strategic nature of hydrogen.
● Technological barriers: PEM electrolysers and integrated systems are high-tech segments less easily dominated.
Key Takeaways
- China is currently a dominant player, especially in ALK electrolysers and green hydrogen production.
- Its success mirrors solar PV dominance but faces unique challenges: high-tech requirements, critical material scarcity, and global regulatory barriers.
- Competitors are emerging, backed by national policies, creating a more contested market.
- Global green hydrogen adoption will depend on technological innovation, integrated systems, and policy support, not just low cost.
Conclusion
China’s rise in the green hydrogen sector highlights the intersection of technology, industrial policy, and global energy transition. While China leverages scale, supply chain control, and cost advantage, other nations are protecting their markets and investing in local capabilities.
The future of green hydrogen will be shaped by:
- Innovation in PEM technology,
- Integrated system solutions, and
- Strategic policies ensuring supply chain security.
China may dominate ALK production today, but a balanced global ecosystem with competition, regulation, and innovation will define who leads in the green hydrogen era.
| India’s Perspective on the Green Hydrogen Market 1. Growing Domestic Importance India’s National Green Hydrogen Mission (launched in 2023) aims to produce 5 million tonnes of green hydrogen annually by 2030.Green hydrogen is considered strategically important for: Decarbonising industries (fertilizers, steel, refineries)Energy storage and integration with renewablesReducing fossil fuel dependence and achieving net-zero targets 2. Opportunities for India Abundant renewable energy potential: Solar and wind resources allow cost-effective electrolyser operation, making India a natural hub for green hydrogen production.Global demand for green hydrogen: Export markets in Europe and Japan present opportunities for India to become a green hydrogen supplier.Learning from China: India can adopt strategies such as: Integrated supply chainsScaling production quicklySupporting domestic electrolyser manufacturing with subsidies and incentives 3. Challenges India Faces Technology gap: India currently lacks large-scale domestic electrolyser manufacturing, especially PEM electrolysers which require advanced materials and know-how. High capital costs: ALK electrolysers are cheaper, but renewable intermittency requires PEM for efficiency, increasing investment needs. Policy and regulatory hurdles: Clearer frameworks for hydrogen blending, storage, transport, and export are still evolving. Competition from China: China’s low-cost ALK electrolysers could dominate the export market, challenging India’s ambitions in global green hydrogen trade. 4. Way Forward for India Domestic manufacturing push: Incentivise local electrolyser production and R&D in PEM technology. Strategic partnerships: Collaborate with Germany, Japan, and EU firms for technology transfer and joint projects. Integrated green hydrogen hubs: Combine renewable energy generation, electrolysis, storage, and industrial applications in clusters. Policy support and export strategy: Focus on competitive pricing, quality standards, and export incentives to penetrate global markets. 5. Key Takeaways India has the renewable potential and strategic intent to become a global green hydrogen player. Learning from China’s successes and limitations can help India avoid pitfalls and focus on technology-intensive and integrated solutions. Policy clarity, domestic manufacturing, and international collaborations will be critical to compete globally while advancing domestic decarbonisation goals. While China leads in ALK electrolyser production, India’s renewable potential, strategic policies, and international collaboration can help it carve a competitive niche in global green hydrogen. India’s focus must be on PEM technology, integrated production hubs, and export-ready quality standards to emerge as a global clean energy hub. |
UPSC Prelims-style practice questions
1. Which of the following statements about green hydrogen are correct?
- Green hydrogen is produced using renewable electricity via electrolysis.
- Alkaline (ALK) electrolysers are more efficient than Proton Exchange Membrane (PEM) electrolysers under fluctuating renewable power.
- PEM electrolysers produce higher-purity hydrogen compared to ALK electrolysers.
- Grey hydrogen is produced from fossil fuels and emits carbon dioxide.
Select the correct answer using the code below:
(A) 1, 2, 3, 4
(B) 1, 3, 4 only
(C) 2 and 3 only
(D) 1 and 4 only
Answer: B – 1, 3, 4 only
Explanation:
- Statement 2 is incorrect because ALK electrolysers are less efficient under fluctuating renewable electricity, whereas PEM electrolysers handle intermittent loads better.
Mains practice question-
Q. “China’s dominance in the global green hydrogen market poses both opportunities and challenges for India.” Explain.(150 words)