Key Messages

According to Union Ministry of Statistics and Programme Implementation, India produced 15,311 petajoules of energy in 2020 of which 81% was derived from fossil fuels such as coal, oil, and natural gas. In fact, fossil fuels have been the fuel of choice for decades despite causing permanent damage to our environment. With India estimated to produce 35,825 petajoules of energy by 2040 according to The International Energy Agency (IEA), transitioning to an alternative clean energy source is the need of the hour.

Nuclear energy is an excellent option, but because of geopolitics (nuclear fuel can be made weapon-grade and invite international sanctions), it is less preferred. Harnessing energy from renewables such as hydro, solar, and wind is fast becoming the choice of future investments as electrification has a huge potential to replace several fossil fuel applications. However many applications such as production of iron, fuel for aviation, etc., cannot be electrified and hydrogen can play an important role in replacing fossil fuels.

A Hydrogen Economy Can Have Huge Dividends for India