Cement Manufacturers Association (CMA)

13 Noida. • Oil India Limited’s development of a 60-kW capacity hydrogen fuel cell bus, featuring a hybrid of electric drive and fuel cell technologies. • Indian Oil’s demonstration pilot plants for green hydrogen production through water electrolysis using solar power, biomass oxy steam gasification, and CBG reforming. These initiatives aim to refuel 15 Hydrogen Fuel Cell buses. Challenges in usage of Hydrogen in Mining Industry Over the recent years, the energy sector has been abuzz with discussions about the potential of green hydrogen within the mining industry. As industry rushes to adopt hydrogen technologies, it’s worth examining the pros and cons of green hydrogen, both for the mining industry. While green hydrogen holds immense potential for the mining industry, there are several challenges to overcome. The high initial costs of renewable energy infrastructure, electrolysis equipment, and fuel cell technologies can be major financial barriers for widespread adoption. Producing these technologies at such a scale remains a relatively new market, so technology and supply chain efficiency remains relatively low. Application of hydrogen also responds to many of the social license challenges mine operators face, its large-scale implementation is facing roadblocks in terms of cost competitiveness and accessibility. Policy makers worldwide, spanning from India to Germany and most recently the US, have made green hydrogen projects a priority by implementing legislative incentives. Technologies can only prove to be successful if they are implemented. Mine operators are experienced and comfortable in meeting financial and operational goals with the tools and technologies that they already have in place. Cost-Competitiveness in hydrogen technologies The most significant challenge to implementation at present seems to be the lack of cost- competitiveness in hydrogen technologies, for which many companies render it prohibitively expensive. It may be that once researchers and developers increase engagement with hydrogen technologies, they will become more accessible, thereby forcing companies to compete with one another to offer cost-competitive products. Green hydrogen comes at a significantly higher price than blue, grey, or brown hydrogen. According to a Thematic Research Report on Hydrogen in Mining, prepared by MINE Australia’s parent company GlobalData, hydrogen produced from fossil fuels costs around $1.7 per kilogram, while renewable hydrogen costs between $2.8 and $6.2 per kilogram. Several developed economies have implemented policies that explicitly encourage investment in hydrogen technology. National governments are taking a pivotal role in tackling significant challenges such as high costs, policy and technological uncertainties, complex value chains, infrastructure needs, regulatory standards, and public acceptance. However, as technology advances and economies of scale become a reality, the costs are expected to decrease. Research by consultancy PwC predicts that globally, the cost of producing green hydrogen will fall by 50% by 2030 and continue falling at a slower rate until around the year 2050. The company predicts that by 2050, green hydrogen production costs could be as little as €1 ($1.09) per kilogram in some parts of the Middle East, Africa, Russia, China, the US and Australia. Collaboration between mining companies, governments, and research institutions is crucial to driving innovation, reducing costs, and creating policies that encourage investment and research. Green hydrogen initiatives have the potential to stimulate hydrogen generation through technological advancements, optimistic investments, and strong government policies. As of today, only 8 GW, or 4 percent of the hydrogen produced worldwide is generated via electrolysis method.