Indo-European Union Bilateral Cooperation on Hydrogen: A Strategic Proposal for Green Hydrogen Production

India's ambitious goal of becoming a global manufacturing hub has gained significant traction recently. While the country has made strides in attracting foreign entities for assembly work, the government's vision extends to transforming these sectors into full-fledged manufacturing units. However, the challenge lies in meeting the energy demands of the manufacturing parks spread across India.

This article proposes the utilization of green hydrogen, produced from renewable sources, as a promising solution to power the manufacturing sector and its vast logistical network.

The focus is on exploring bilateral cooperation between India and a European Union (EU) member state to establish offshore green hydrogen production plants and foster a sustainable hydrogen ecosystem.

Addressing Energy Requirements

Establishing green hydrogen production units is crucial to meet the energy demands of manufacturing parks. India has a significant advantage in its installed renewable energy capacity, which can be harnessed for green hydrogen production.

By leveraging its abundant solar and wind resources, India can establish large-scale renewable energy projects designed explicitly for green hydrogen production.

Streamlining the use and distribution of renewable energy and retrofitting gas pipelines for the transportation of green hydrogen are key steps that need to be undertaken. This will require a comprehensive approach involving policy support, regulatory frameworks, and investment in infrastructure.

The Geopolitical Dimension

As the world increasingly shifts its focus towards green alternatives, countries capable of meeting the rising demand for clean energy will play a crucial strategic role.

India has emerged as a significant player with its fertile innovation ecosystem and cost-effective manufacturing capabilities. The government's initiatives, such as the Renewable Purchase Obligation (RPO) and Production Linked Incentives (PLI) for electrolyser manufacturing, create artificial demand for green energy and provide attractive opportunities for foreign entities to establish their manufacturing presence in India.

This aligns with India's objective of becoming a global manufacturing powerhouse and an attractive destination for foreign investment.

Indo-European Union Collaboration

Having already invested in the domestic green hydrogen sector, an EU member state can consider India a promising partner to establish offshore green hydrogen production plants.

The collaboration can begin by calculating the EU member state's required capacity of green hydrogen and identifying suitable locations in western Indian states such as Rajasthan, Gujarat, Karnataka, and Maharashtra. These regions have favourable conditions for renewable energy generation, including ample sunlight and suitable land availability.

Building plant infrastructure within existing solar power parks can expedite the establishment of green hydrogen production units. Operating heavy-duty trucks on a pilot basis using green hydrogen can showcase the viability and scalability of this clean energy solution.

Private-to-private cooperation, through joint ventures between European and Indian stakeholders, can further facilitate commercial projects and boost local suppliers' involvement.

This collaboration can foster knowledge exchange, technology transfer, and skills development, benefiting both sides. It can also provide a platform for research and development in green hydrogen technologies, driving innovation and creating new business opportunities.

Infrastructure and Trade Relations

Establishing a pipeline system from the production units to nearby port facilities is crucial for efficiently transporting green hydrogen. Additionally, branching out sections of the plants to neighbouring industrial clusters can promote the sale of green hydrogen locally and globally.

This collaboration can lead to a unique hydrogen trade relationship between India and the EU, positioning the EU member state as a gateway for India to export green hydrogen to European countries. Furthermore, the EU member state can become a strategic partner to India in building a national green hydrogen ecosystem, fostering joint research on hydrogen mobility and industrial logistics.

This partnership can accelerate the development and adoption of hydrogen-based technologies in both regions, creating a win-win situation for all stakeholders involved.

Strategic Implications

The proposed Indo-European Union collaboration on hydrogen presents a strategic opportunity for both sides to leverage their strengths and foster a mutually beneficial partnership.

By combining India's manufacturing capabilities and the EU member state's expertise in green hydrogen, this collaboration can pave the way for technological innovation, sustainable economic growth, and enhanced energy security.

Furthermore, it can contribute to the EU's strategic goal of diversifying its energy sources and reducing dependence on fossil fuels. At the same time, India can leverage the partnership to strengthen its position as a global manufacturing powerhouse and an attractive destination for foreign investment.

This collaboration can serve as a blueprint for other countries seeking to transition towards a greener and more sustainable energy landscape.

Conclusion

This partnership can foster innovation, trade relations, and strategic cooperation by harnessing India's manufacturing capabilities and the EU member state's expertise in green hydrogen. It holds the potential to significantly contribute to a greener and more sustainable global energy landscape while strengthening the ties between India and the European Union.

The proposed collaboration addresses India's energy demands for its manufacturing sector and aligns with global efforts to combat climate change and transition to a low-carbon economy. Through joint efforts, India and the EU can create a model for green manufacturing that sets an example for other countries to follow, leading to a cleaner and more prosperous future.