Challenges in Developing Hydrogen Infrastructure in Emerging Economies: Focus on India

Abstract

Globally, hydrogen is gaining recognition as a vital component of sustainable energy systems, serving as a versatile and carbon-free energy carrier for industries, transportation, and power generation. Although developed nations have introduced large-scale hydrogen initiatives, emerging economies continue to struggle with unique obstacles related to technology, financing, and policy development.This study examines both the global and Indian hydrogen sectors, emphasizing the essential role of green hydrogen combined with renewable energy sources. It investigates key challenges, including elevated production costs, inadequate infrastructure, water scarcity issues, and policy ambiguities, while providing an in-depth analysis of India’s specific hurdles and opportunities.The paper proposes strategic approaches such as expanding domestic electrolyzer production, establishing renewable-hydrogen hubs, enhancing regulatory frameworks, and promoting international partnerships. It further underscores the significance of innovation, workforce training, and raising public awareness to support the development of a strong hydrogen economy. Through focused investments, technological advancements, and coordinated policy efforts, emerging nations like India can establish leadership roles in the global hydrogen transition and move swiftly toward a low-carbon future.

Introduction

???? Overview: Hydrogen in the Clean Energy Transition

• Hydrogen is the universe's most abundant element and is gaining attention as a key enabler of decarbonization due to:

  • High energy density.

  • Zero CO? emissions at the point of use.

  • Versatile use across transportation, industry, buildings, and power.

• Types of Hydrogen:

  • Grey: From fossil fuels (CO?-intensive).

  • Blue: Grey + Carbon Capture and Storage (CCS).

  • Green: From water electrolysis using renewables (zero-emission).

  • Turquoise: From methane pyrolysis (emerging tech).

? Over 95% of hydrogen today is still grey hydrogen.

???? Global Hydrogen Landscape

• After the Paris Agreement (2015), many countries set Net Zero goals, positioning hydrogen as vital for hard-to-electrify sectors (e.g., steel, chemicals, heavy transport).

• Hydrogen Strategies adopted by Japan, EU, Germany, Australia, and others include:

  • National policies.

  • Public-private investment.

  • International partnerships.

• Current Stats (2024):

  • Global hydrogen demand: ~94 million tonnes (mostly for refining and ammonia).

  • Announced investments: USD 240 billion+.

  • Green hydrogen share: <5% (mostly early-stage).

  • Key barriers: High production cost, immature infrastructure, policy gaps.

???????? India’s Hydrogen Ecosystem

• As the 3rd-largest energy consumer, India launched the National Hydrogen Mission (2021):

  • Target: 5 million tonnes of green hydrogen/year by 2030.

  • Part of India’s Net Zero by 2070 pledge.

• Green Hydrogen Policy (2022) includes:

  • Transmission charge waivers for RE-based hydrogen.

  • Fast-track land allocation and grid access.

  • Incentives for electrolyzer manufacturing (under PLI scheme).

• Strengths:

  • Vast solar/wind potential.

  • Low renewable energy costs.

  • Strong industrial base.

• Challenges:

  • High electrolyzer/import costs.

  • Limited hydrogen pipelines and refueling stations.

  • Policy inconsistencies between states.

  • Water scarcity concerns for large-scale electrolysis.

???? Hydrogen + Renewable Energy Integration

• Green Hydrogen Production Steps:

  1. Renewable energy generation.

  2. Power supplied to electrolyzers.

  3. Water split into hydrogen and oxygen.

  4. Hydrogen compressed and stored.

  5. Used across sectors (industry, power, transport).

• Benefits:

  • Decarbonizes hard-to-electrify sectors.

  • Acts as energy storage for variable renewables.

  • Boosts energy security and diversification.

  • Generates economic and employment opportunities.

• India can produce green hydrogen competitively due to:

  • Huge solar parks.

  • Planned offshore wind farms.

  • Falling renewable prices.

? Key Challenges in Emerging Economies (Including India)

1. High Production Costs:

   • Electrolyzers and RE integration are expensive.

2. Limited Renewable Integration:

   • Grid constraints and RE curtailment.

3. Infrastructure Gaps:

   • Lack of pipelines, storage, refueling networks.

4. Water Scarcity:

   • Electrolysis needs pure water—critical in arid regions.

5. Skilled Workforce Shortage:

   • Need for training in hydrogen safety, handling, and tech.

6. Policy and Regulation Gaps:

   • Need for standards, certification, and carbon accounting.

7. Financing Barriers:

   • Limited access to green finance; high investment risks.

8. Public Awareness:

   • Misconceptions and safety concerns around hydrogen.

Conclusion

Building a sustainable hydrogen infrastructure is essential for emerging economies striving to achieve deep decarbonization, strengthen energy security, and enhance industrial competitiveness. Green hydrogen, particularly when coupled with abundant renewable energy resources, provides a transformative solution to simultaneously drive economic growth and mitigate climate change impacts. This study examined the global and Indian hydrogen sectors, emphasized the opportunities for integration with renewable energy sources, and identified key technological, infrastructural, financial, and policy-related challenges confronting emerging economies. It also provided a detailed assessment of India\'s specific issues, including high electrolyzer costs, water scarcity, infrastructure gaps, and regulatory uncertainties.Alongside these challenges, the paper discussed strategic opportunities such as expanding domestic manufacturing, tapping into hydrogen export markets, and advancing workforce development. The proposed roadmap advocates for a coordinated strategy encompassing the expansion of electrolyzer production, creation of integrated hydrogen hubs, enhancement of regulatory structures, promotion of water-efficient technologies, development of transportation and storage networks, introduction of innovative financing solutions, and strengthening of international partnerships.Additionally, raising public awareness, fostering skill development, and encouraging indigenous innovation will be crucial for maintaining long-term progress. Through decisive action, targeted investments, and collaborative international efforts, India and other emerging economies have the potential to build a resilient hydrogen economy and establish themselves as global leaders in the sustainable energy transition.

References

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Copyright

Copyright © 2025 Atharva Suhas Kulkarni. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.