Gambling on green hydrogen could prove to be a risky bet

Industrialists have delightedly hailed the government’s new green hydrogen policy offering incentives to produce 5 million tons of hydrogen by 2030. India already produces solar and wind energy more cheaply than new thermal power. But while renewables can replace fossil fuels in many uses, coal is still needed in industries like steel and cement, and liquid fuels in shipping and airlines (renewables cannot power long trips).

- SWAMINATHAN S ANKLESARIA AIYAR

Passing electricity through water produces hydrogen. If the electricity comes from renewable power, the output is called green hydrogen. This can be stored and later burned to produce high-intensity energy for steel, cement, shipping and airlines. It can be used to produce fertilisers. It has enormous potential. But please hold the champagne. It also carries big economic and safety risks. An experimental technology, it could be a big hit or big flop. The government should be cautious in expending financial and human resources.

Encouraging research and pilot plants is highly desirable. But the huge 2030 target should be renamed an “aspiration” since a “target” may be seen by politicians as an excuse to throw good money after bad if the technology fails. A Plan B for prudent retreat should be built into the overall strategy.