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India’s energy supply security: prospects and challenges

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Authors: Sanjay Kumar Kar and Prajit Goswami

India is one of the fastest growing economies in the world. It had been growing at a rapid rate of 7 percent for the last 10 years. Further, it is expected to grow over 7% percent in the coming decade. To fuel projected economic growth and cater growing energy needs, India requires a lot of energy.

With an area of 1.26 million square miles with diverse landscape and difficult terrain, India comprises around 1.2 billion people and their ever increasing needs. Currently India imports 70-80% of its oil and 30-40% of its natural gas requirements. Historically India’s energy import dependency rests on Middle East.

Coal is the most important and widely available fossil fuel in India. It supplies 55 percent of the country’s primary energy needs. According to BP Statistical Review, 2016 at the end of 2015, India had 60600 million tons of coal reserves with a global share of 6.8% and R/P ratio of 89 years. Compared to other fossil resources like oil & gas, India is better placed with coal resources for future production and use.

India intends to reduce coal imports by exploiting its own reserves. Import of coal has already decreased, by around 19 percent to 16.38 million tons in the month of May 2016 as compared to around 20.29 million tons in May 2015.

India’s current renewable energy capacity, 45 GW, is just about 14.7% of total installed grid connected electricity generation capacity of 306 GW in the country. Some of the major challenges faced by renewable sector are lower capacity utilization, lack of evacuation infrastructure, and funding for large scale expansions. Coal still the cheapest source for power production with per unit tariff in the range of Rs. 2.3-4.00. However, renewable sources like wind and solar are competing well to achieve grid parity. Current wind tariff is in the range of Rs. 3.39-Rs.5.92/kWh and recently solar tariff reached as low as Rs.4.34/kWh. In the beginning Government encouraged feed-in tariff but now the market is moving towards competitive bidding tariff. Therefore, renewable tariff is moving closer to grid parity.

Despite all kind of limitations the Government targets to achieve renewable installation capacity of 175 GW by 2022. Further, multiple initiatives are being taken by the Government to promote off-grid or captive renewable energy along with decentralized renewable applications. The Government is actively pushing installation and production of renewable energy through schemes like accelerated depreciation, generation based incentives (GBI), and viability gap funding. The Government already funded Rs. 25075 million under the GBI scheme for solar and wind power production.

Decentralized renewable applications are expected improve livelihood of millions of Indians in the rural as well as urban India. Because holds will have access to energy which would be helpful for enhancing scope of economic activity, thereby improve economic productivity and revenue generation. Further, affordable energy accessible to all citizens could improve situation of primary education in the country.

As India needs to diversify its energy mix and reduce dependence on imported fossil fuel nuclear energy could play a very important role in ensuring energy security of the country. Application of nuclear for electricity generation needs to be actively pushed forward. Media reports suggest that nuclear power cost is in the range of Rs.9-12/kWh.

India’s largely indigenous nuclear power program resulted in capacity installation of 5780 MWe. With the support of Russia and many other partnering countries India is expected to achieve 14.6 GWe nuclear capacity by 2024. It is high time for India to intensify strategic measures to address its energy security challenges like: making energy accessible, affordable, and available to all its citizens.

At least, India could aim to manage energy supply security if not complete energy security. One of the important source of energy could be natural gas as a transit fuel for meeting emerging energy needs. Natural gas can gradually reduce: (i) use of diesel and petrol in the transport sector, (ii) use of coal in the power sector, (iii) use of liquefied petroleum gas (LPG) in the domestic cooking, heating, and cooling; and (iv) use of coal and liquid fossil fuel in various industries like ceramic, textile, steel, etc. Further, natural gas could be used to produce hydrogen used in the refineries and in the transport sector.

India’s domestic natural gas production remains a big concern and future addition of new gas reserves provide no better comfort. As a result India’s import dependency continue to grow and we believe that the import trend may very much continue in future too. Unless domestic unconventional sources of gas offer some surprise, import of liquefied natural gas (LNG) would continue to play a critical to bridge the demand-supply gap.

For the time being India’s over dependence on Middle-East for fossil energy is not a concern from supply point of view. However, India should expand its energy sources basket carefully and strategically to avoid any future supply constraints. Considering the current supply glut of fossil fuel, this is the right time to expand the range of sourcing destinations. In the recent past, India actively searched for alternative or complementary destinations for sourcing natural gas. In the process, emerging destinations like the US and Australia were added.

India’s domestic gas production fallen from about 51 billion cubic meter (BCM) in 2010-11 to 31 BCM in 2015-16. As a result the gap between demand and supply has been widening. As results natural import dependency has been increasing which is evident from increase in LNG import from 12.9 BCM in 2010-11 to 21.3 BCM in 2015-16.

Natural gas is certainly tipped as the transition green fuel especially in the transport in sector. It has comparatively lower carbon footprint-thus more environment friendly compared to coal and oil. The uses of gas in cooking, heating and power generation stand to benefit millions of stakeholders. Apart from the above purposes use of natural gas for mobility sector addresses many concerns including the environmental concerns faced by urban cities. So, city gas distribution is poised to offer green energy solution to many struggling cities and upcoming smart cities.

In the present scenario India imports gas only through LNG carrier. It is believed that transporting natural gas through pipelines is found be cost effective over LNG carriers. For example, in 2013 China received pipeline gas imports at an average price of US$ 9.78 per MMBtu compared to average price of LNG import price of US$ 13.8 per MMBtu. LNG is costlier because the gas has to be liquefied to reduce its volume and transported using specially designed cryogenic tanks. Also at the receiving end specialised LNG terminals have to be built to store and re-gasify. Essentially the countries which import natural gas through pipelines enjoy cost advantage over import of LNG.

India has been pushing for transnational pipelines with limited success. However looking at India’s strategic location it would be viable for India to take gas from gas rich Iran, and Turkmenistan through pipelines. India already has agreed upon much talked about Turkmenistan–Afghanistan-Pakistan-India (TAPI) pipeline which starts from Turkmenistan and passes through Afghanistan & Pakistan before reaching India. TAPI pipeline with a length of 1124.68 miles passes through terror affected areas of Kandahar and Herat. Thus this makes it a very risky project to operationalize. Although NATO forces stationed in Afghanistan would ensure to protect the part of the pipeline passing through terror prone territories but future sabotage and attack may not completed ruled out. The project is due to be completed by 2019 and India would receive 1341.78 million cubic feet per day of gas. Operationalization of TAPI would certainly improve gas supply security for India.

Another transnational pipeline project namely Iran-Pakistan-India couldn’t happen due to very many reasons including sanctions on Iran, geopolitical pressure, and security concerns. In a report published in the Indian Express on 22nd April 2016 the Iranian Ambassador was stated saying that this project should be forgotten.

Discussions with Iran is on for a deep sea 868 miles pipeline via the Oman Sea and Indian Ocean. Iran-Oman-India pipeline from Iranian port of Chabahar to India’s Gujarat Coast would transport 1098.141 million standard cubic feet of gas per day. This might compensate for the almost failed IPI project and also there would be no issue of any other transit country conflict.

India has also invested for the development of the Chabahar port and also funding a rail link between Chabahar and Zahedan in Iran. The completion of the rail link would connect Chabahar to North South Transport Corridor (NSTC). These investments are moulding the bilateral ties of India and Iran. This deep sea pipeline will not only connect India to Iran’s Gas fields but Oman is also slated to join the pipeline at a later stage. This would give India a strong foothold to the Gas trade in both Iran and Oman. Also it would boost India’s stand in comparison to China’s One Belt One Road Program (OBOR).

Besides Iran, Oman and Turkmenistan, India also has a potential import source towards its north-eastern side which is Myanmar. The main advantage with Myanmar is its proximity to India and that it shares its borders with North-eastern part of India. Myanmar large untapped reserves. According to BP statistical review report 2016 Myanmar has 18.7 trillion cubic feet of natural gas with an R/P ratio of 27 years. But until now the investments that India has made in Myanmar although substantial are very less in comparison to China. According to a report in Journal Of Energy Security India’s investment in Myanmar Oil and Gas sector is around US $1.6 billion while Chinese investments is around US$ 8 billion. The 1.04 US$ Sino-Myanmar gas pipeline has been functional since 2013 transporting 423.72 billion cubic feet (bcf) gas to China annually. Lack of proper funding and coordination between public and private owned firms has resulted in India loosing important bids to other countries. Therefore, impacting India’s intention to secure long term energy supply.

Further, India failed to bring to table Myanmar-Bangladesh-India transnational pipeline because of Bangladesh’s unwillingness to act as a transit country. Although an alternative to this route was by bypassing Bangladesh and building a pipeline through North-East India that could connect to pipelines of East India. This deal also never came to reality due to multiple reasons including lack of funding. And thus China took advantage of this situation and entered into the gas pipeline market of Myanmar and built a similar transnational pipeline to China’s comparatively less developed Yunnan province.

However, an agreement with Myanmar through North-eastern states may increase the pipeline costs but it would also give India long term gas sourcing from Myanmar. The problems that India faces on its north-western part because of hostile relationships with Pakistan and with issues of pipeline security in both Pakistan and Afghanistan. This however is not the case with Myanmar. Therefore having a gas trade relationship with Myanmar is much secure and mutually beneficial. In-case any problem occurs in the north-western side this may act as a contingency plan. This also has another benefit; the gas pipeline from Myanmar via North-East India can be used to develop the region which otherwise due to its difficult terrain is not easy to develop. Development of North-East provides a major strategic advantage to India in dealing with China in terms of monitoring and also preparing required infrastructure to handle any unforeseen situation.

To ensure long-term energy security for its all citizens India should continue to actively pursue multi-pronged strategies. Currently, the Government is focussing on exploiting domestic fossils fuel and renewable energy resources to address ever increasing demand. Simultaneous, New Delhi’s energy diplomacy with energy resource rich countries like the US, Russia, Qatar, Saudi Arabia, Iran, and Australia has been unfolding. Even Prime Minister Mr. Modi’s look Africa energy policy adds new dimensions to India’s interest in securing energy equity in Africa and enhancing India’s energy security. Further, clean coal technologies are being pushed to improve supply of much greener energy.

So in order to secure India’s energy future it is necessary for India to explore and exploit domestic fossil resources but seriously acquire fossil resources outside India. To improve energy supply security emphasis should be given to energy diplomacy, international collaborations, and efficient trade partnership. Building necessary energy infrastructure like LNG terminal and pipeline should be pursued with utmost priority. India should take advantage of global supply glut to improve accessibility, affordability, and availability of energy for its citizens. Further, creating investment climate for renewable energy should be facilitated at all levels to bring renewable energy revolution at the earliest.

Decontrol of petroleum product pricing especially petrol and diesel prices takes energy pricing toward market determined pricing. Even gas pricing is more market oriented than ever before. Direct cash transfer on use liquefied petroleum gas (LPG) for domestic cooking purpose is a step forward to address energy accessibility and affordability. Judiciary and environment regulatory authorities are seriously pushing use of natural gas or green fuels to improve air quality in metro cities. Within a decade the Government intends to increase city gas distribution to 200 geographical areas from current level of 70 geographical areas.

India is certainly capable of addressing existing and future challenges to improve its energy security in the long-run. Moreover, green and renewable energy would play an important role to improve future energy security in the country.

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Oil and the new world order: China, Iran and Eurasia

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The world oil market will undergo a fundamental change in the future. Choosing petrodollars or oil wars is no longer a question that can be answered. With the Strategic Agreement on the Comprehensive Economic and Security Partnership between China and Iran officially signed by the Foreign Ministers of both countries in Tehran on March 27, 2021, the petrodollar theorem is broken and the empire built by the US dollar is cracked.

This is because the petrodollar has not brought substantial economic development to the oil-producing countries in the Middle East during over half a century of linkage to the US dollar.

The Middle East countries generally have not their own industrial systems. The national economies are heavily dependent on oil exports and imports of cereals and industrial products. The national finances are driven by the US dollar and the financial system that follows it.

If the Middle East countries wanted to escape the control of the dollar, they should face the threat of war from the United States and its allies – things we have seen over and over again. Just think of Saddam Hussein being supported when he was fighting Iran and later being Public Enemy No. 1 when he started trading oil in euros.

The West has always wanted the Middle East to be an oil ‘sacred cow’ and has not enabled it to develop its own modern industrial system: the lack of progress in the Middle East was intended as long-term blackmail.

In the Western system of civilisation based on exchange of views and competition, the West is concerned that Iran and the entire Middle East may once again restore the former glory and hegemony of the Persian, Arab and Ottoman empires.

China is facing the exploitation of the global oil market and the threat of its supply disruption. Relying on industrial, financial, and military strength, Europe and the United States control the oil production capital, trade markets, dollar settlements, and global waterways that make up the entire petrodollar world order, differentiating China and the Middle East and dividing the world on the basis of the well-known considerations. You either choose the dollar or you choose war – and the dollar has long been suffering.

Just as in ancient times nomadic tribes blocked the Silk Road and monopolised trade between East and West, Europe and the United States are holding back and halting cooperation and development of the whole of Asia and the rest of the planet. Centuries ago, it was a prairie cavalry, bows, arrows and scimitars: today it is a navy ship and a financial system denominated in dollars.

Therefore, China and Iran, as well as the entire Middle East, are currently looking for ways to avoid middlemen and intermediaries and make the difference. If there is another strong power that can provide military security and at the same time offer sufficient funds and industrial products, the whole Middle East oil can be freed from the dominance of the dollar and can trade directly to meet demand, and even introduce new modern industrial systems.

Keeping oil away from the US dollar and wars and using oil for cooperation, mutual assistance and common development is the inner voice of the entire Middle East and developing countries: a power that together cannot be ignored in the world.

The former Soviet Union had hoped to use that power and strength to improve its system. However, it overemphasised its own geostrategic and paracolonial interests – turning itself into a social-imperialist superpower competing with the White House. Moreover, the USSR lacked a cooperative and shared mechanism to strengthen its alliances, and eventually its own cronies began to rebel as early as the 1960s.

More importantly – although the Soviet Union at the time could provide military security guarantees for allied countries – it was difficult for it to provide economic guarantees and markets, although the Soviet Union itself was a major oil exporter. The natural competitive relationship between the Soviet Union and the Middle East, as well as the Soviet Union’s weak industrial capacity, eventually led to the disintegration of the whole system, starting with the defection of Sadat’s Egypt in 1972. Hence the world reverted to the unipolarised dollar governance once the Soviet katekon collapsed nineteen years later.

With the development and rise of its economy, however, now China has also begun to enter the world scene and needs to establish its own new world order, after being treated as a trading post by Britain in the 19th century, later divided into zones of influence by the West and Japan, and then quarantined by the United States after the Second World War.

Unlike the US and Soviet world order, China’s proposal is not a paracolonial project based on its own national interests, nor is it an old-fashioned “African globalisation” plan based on multinationals, and it is certainly not an ideological export.

For years, there has been talk of Socialism with Chinese characteristics and certainly not of attempts to impose China’s Marxism on the rest of the world, as was the case with Russia. China, instead, wishes to have a new international economic order characterised by cooperation, mutual assistance and common development.

Unlike the Western civilisation based on rivalry and competition, the Eastern civilisation, which pays more attention to harmony without differences and to coordinated development, is trying to establish a new world economic order with a completely different model from those that wrote history in blood.

Reverting to the previous treaty, between the US dollar and the war, China has offered Iran and even the world a third choice. China seems increasingly willing to exist as a service provider. This seems to be more useful for China, first of all to solve its own problems and not to get involved in endless international disputes.

It can thus be more accepted by all countries around the world and unite more States to break the joint encirclement of the “democratic” and liberal imperialism of Europe and the United States.

Consequently, China and Iran – whose origins date back almost to the same period – met at a critical moment in history. According to the Strategic Agreement on Comprehensive Economic and Security Partnership between China and Iran, China will invest up to 400 billion dollars in dozens of oil fields in Iran over the next 25 years, as well as in banking, telecommunications, ports, railways, healthcare, 5G networks, GPS, etc.

China will help Iran build the entire modern industrial system. At the same time, it will receive a heavily discounted and long-term stable supply of Iranian oil. The Sino-Iranian partnership will lay the foundations for a proposed new world order, with great respect for Eastern values, not based on some failed, decadent and increasingly radicalising principles.

Faced with the value restraint and the pressure of sanctions from the United States and Europe, China is seeking to unite the European third Rome, Indo-European Iran, the second Rome and the five Central Asian countries to create a powerful geoeconomic counterpart in the hinterland of Eurasia.

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The stages and choices of energy production from hydrogen

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There are three main ways to use hydrogen energy:

1) internal combustion;

2) conversion to electricity using a fuel cell;

3) nuclear fusion.

The basic principle of a hydrogen internal combustion engine is the same as that of a gasoline or diesel internal combustion engine. The hydrogen internal combustion engine is a slightly modified version of the traditional gasoline internal combustion engine. Hydrogen internal combustion burns hydrogen directly without using other fuels or producing exhaust water vapour.

Hydrogen internal combustion engines do not require any expensive special environment or catalysts to fully do the job – hence there are no problems of excessive costs. Many successfully developed hydrogen internal combustion engines are hybrid, meaning they can use liquid hydrogen or gasoline as fuel.

The hydrogen internal combustion engine thus becomes a good transition product. For example, if you cannot reach your destination after refuelling, but you find a hydrogen refuelling station, you can use hydrogen as fuel. Or you can use liquid hydrogen first and then a regular refuelling station. Therefore, people will not be afraid of using hydrogen-powered vehicles when hydrogen refuelling stations are not yet widespread.

The hydrogen internal combustion engine has a small ignition energy; it is easy to achieve combustion – hence better fuel saving can be achieved under wider working conditions.

The application of hydrogen energy is mainly achieved through fuel cells. The safest and most efficient way to use it is to convert hydrogen energy into electricity through such cells.

The basic principle of hydrogen fuel cell power generation is the reverse reaction of electrolysis of water, hydrogen and oxygen supplied to the cathode and anode, respectively. The hydrogen spreading – after the electrolyte reaction – makes the emitted electrons reach the anode through the cathode by means of an external load.

The main difference between the hydrogen fuel cell and the ordinary battery is that the latter is an energy storage device that stores electrical energy and releases it when needed, while the hydrogen fuel cell is strictly a power generation device, like a power plant.

The same as an electrochemical power generation device that directly converts chemical energy into electrical energy. The use of hydrogen fuel cell to generate electricity, directly converts the combustion chemical energy into electrical energy without combustion.

The energy conversion rate can reach 60% to 80% and has a low pollution rate. The device can be large or small, and it is very flexible. Basically, hydrogen combustion batteries work differently from internal combustion engines: hydrogen combustion batteries generate electricity through chemical reactions to propel cars, while internal combustion engines use heat to drive cars.

Because the fuel cell vehicle does not entail combustion in the process, there is no mechanical loss or corrosion. The electricity generated by the hydrogen combustion battery can be used directly to drive the four wheels of the vehicle, thus leaving out the mechanical transmission device.

The countries that are developing research are aware that the hydrogen combustion engine battery will put an end to pollution. Technology research and development have already successfully produced hydrogen cell vehicles: the cutting-edge car-prucing industries include GM, Ford, Toyota, Mercedes-Benz, BMW and other major international companies.

In the case of nuclear fusion, the combination of hydrogen nuclei (deuterium and tritium) into heavier nuclei (helium) releases huge amounts of energy.

Thermonuclear reactions, or radical changes in atomic nuclei, are currently very promising new energy sources. The hydrogen nuclei involved in the nuclear reaction, such as hydrogen, deuterium, fluorine, lithium, iridium (obtained particularly from meteorites fallen on our planet), etc., obtain the necessary kinetic energy from thermal motion and cause the fusion reaction.

The thermonuclear reaction itself behind the hydrogen bomb explosion, which can produce a large amount of heat in an instant, cannot yet be used for peaceful purposes. Under specific conditions, however, the thermonuclear reaction can achieve a controlled thermonuclear reaction. This is an important aspect for experimental research. The controlled thermonuclear reaction is based on the fusion reactor. Once a fusion reactor is successful, it can provide mankind with the cleanest and most inexhaustible source of energy.

The feasibility of a larger controlled nuclear fusion reactor is tokamak. Tokamak is a toroidal-shaped device that uses a powerful magnetic field to confine plasma. Tokamak is one of several types of magnetic confinement devices developed to produce controlled thermonuclear fusion energy. As of 2021, it is the leading candidate for a fusion reactor.

The name tokamak comes from Russian (toroidal’naja kamera s magnitnymi katuškami: toroidal chamber with magnetic coils). Its magnetic configuration is the result of research conducted in 1950 by Soviet scientists Andrei Dmitrievič Sakharov (1921-1989) and Igor’ Evgen’evič Tamm (1895-1971), although the name dates back more precisely to 1957.

At the centre of tokamak there is a ring-shaped vacuum chamber with coils wound outside. When energized, a huge spiral magnetic field is generated inside the tokamak, which heats the plasma inside to a very high temperature, which achieves the purpose of nuclear fusion.

Energy, resources and environmental problems urgently need hydrogen energy to solve the environmental crisis, but the preparation of hydrogen energy is not yet mature, and most of the research on hydrogen storage materials is still in the exploratory laboratory stage. Hydrogen energy production should also focus on the “biological” production of hydrogen.

Other methods of hydrogen production are unsustainable and do not meet scientific development requirements. Within biological production, microbial production requires an organic combination of genetic engineering and chemical engineering so that existing technology can be fully used to develop hydrogen-producing organisms that meet requirements as soon as possible. Hydrogen production from biomass requires continuous improvement and a vigorous promotion of technology. It is a difficult process.

Hydrogen storage focused on the discovery of new aspects of materials or their preparation is not yet at large-scale industrial level. Considering different hydrogen storage mechanisms, and the material to be used, also needs further study.

Furthermore, each hydrogen storage material has its own advantages and disadvantages, and most storage material properties have the characteristics that relate to adductivity and properties of a single, more commonly known material.

It is therefore believed that efforts should be focused on the development of a composite hydrogen storage material, which integrates the storage advantages of multiple individual materials, along the lines of greater future efforts.

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The advantages of hydrogen and Israel’s warnings

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Hydrogen is the most common element in nature. It is estimated to make up 75% of the mass of the universe. Except for that contained in air, it is primarily stored in water in the form of a compound, and water is the most widely distributed substance on earth.

Hydrogen has the best thermal conductivity of all gases – i.e. ten times higher than most of them – and it is therefore an excellent heat transfer carrier in the energy industry.

Hydrogen has good combustion performance, rapid ignition, and has a wide fuel range when mixed with air. It has a high ignition point and rapid combustion rate.

Except for nuclear fuels, the calorific value of hydrogen is the highest among all fossil and chemical fuels, as well as biofuels, reaching 142.35 kJ/kg. The calorie per kilogram of hydrogen burned is about three times that of gasoline and 3.9 times that of alcohol, as well as 4.5 times that of coke.

Hydrogen has the lightest weight of all elements. It can appear as gas, liquid, or solid metal hydride, which can adapt to different storage and transport needs and to various application environments.

Burning hydrogen is cleaner than other fuels –  besides generating small amounts of water – and does not produce hydrogen azide as carbon monoxide, carbon dioxide (harmful to the environment), hydrocarbons, lead compounds and dust particles, etc. A small amount of hydrogen nitride will not pollute the environment after proper treatment, and the water produced by combustion can continue to produce hydrogen and be reused repeatedly.

Extensive use practices show that hydrogen has a record of safe use. There were 145 hydrogen-related accidents in the United States between 1967 and 1977, all of which occurred in petroleum refining, the chlor-alkali industry, or nuclear power plants, and did not really involve energy applications.

Experience in the use of hydrogen shows that common hydrogen accidents can be summarized as follows: undetected leaks; safety valve failure; emptying system failure; broken pipes, tubes or containers; property damage; poor replacement; air or oxygen and other impurities left in the system; too high hydrogen discharge rate; possible damage of pipe and tube joints or bellows; accidents or tipping possibly occurring during the hydrogen transmission process.

These accidents require two additional conditions to cause a fire: one is the source of the fire and the other is the fact that the mixture of hydrogen and air or oxygen must be within the limits of the possibility of fires or violent earthquakes in the local area.

Under these two conditions, an accident cannot be caused if proper safety measures are established. In fact, with rigorous management and careful implementation of operating procedures, most accidents do not theoretically occur.

The development of hydrogen energy is triggering a profound energy revolution and could become the main source of energy in the 21st century.

The United States, Europe, Japan, and other developed countries have formulated long-term hydrogen energy development strategies from the perspective of national sustainable development and security strategies.

Israel, however, makes warning and calls for caution.

While the use of hydrogen allows for the widespread penetration of renewable energy, particularly solar and wind energy – which, due to storage difficulties, are less available than demand – Israeli experts say that, despite its many advantages, there are also disadvantages and barriers to integrating green hydrogen into industry, including high production costs and high upfront investment in infrastructure.

According to the Samuel Neaman Institute’s Energy Forum report (April 11, 2021; authors Professors Gershon Grossman and Naama Shapira), Israel is 7-10 years behind the world in producing energy from clean hydrogen.

Prof. Gideon Friedman, actingchief scientist and Director of Research and Development at the Ministry of Energy, explains why: “Israel has a small industry that is responsible for only 10% of greenhouse gas emissions – unlike the world where they are usually 20% – and therefore the problems of emissions in industry are a little less acute in the country.”

At a forum held prior to the report’s presentation, senior officials and energy experts highlighted the problematic nature of integrating clean hydrogen into industry in Israel.

Dr. Yossi Shavit, Head of the cyber unit in industry at the Ministry of Environmental Protection, outlined the risks inherent in hydrogen production, maintenance and transportation, including the fact that it is a colourless and odourless gas that makes it difficult to detect a leak. According to Dr. Shavit, hydrogen is a hazardous substance that has even been defined as such in a new regulation on cyber issues published in 2020.

Dr. Shlomo Wald, former chief scientist at the Ministry of Infrastructure, argued that in the future hydrogen would be used mainly for transportation, along with electricity.

Prof. Lior Elbaz of Bar-Ilan University said that one of the most important things is the lack of laws: “There is no specific regulation for hydrogen in Israel, but it is considered a dangerous substance. In order for hydrogen to be used for storage and transportation, there needs to be a serious set of laws that constitute a bottleneck in our learning curve.” “Israel has something to offer in innovation in the field, but government support will still be needed in this regard – as done in all countries – and approximately a trillion dollars in the field of hydrogen is expected to be invested in the next decade.”

Although the discussion was mainly about Israel’s delay in integrating clean hydrogen into the industry, it has emerged that Sonol (Israel’s fuel supplier ranking third in the country’s gas station chain) is leading a project, together with the Ministry of Transport, to establish Israel’s first hydrogen refuelling station. “We believe there will be hydrogen transportation in Israel for trucks and buses,” said Dr. Amichai Baram, Vice President of operations at Sonol. “Hydrogen-powered vehicles for the country – albeit not really cheap in the initial phase – and regulations promoted in the field, both for gas stations and vehicles.”

Renewables account for only 6% of Israel’s energy sources and, according to the latest plans published by the Ministry of Energy and adopted by the government, the target for 2030 is 30%.

This is an ambitious goal compared to reality, and also far from the goal of the rest of the countries in the world that aim at energy reset by 2050.

The authors of the aforementioned report emphasize that fully using the clean hydrogen potential is key to achieving a higher growth target for Israel.

According to recommendations, the State should critically examine the issue in accordance with Israel’s unique conditions and formulate a strategy for the optimal integration of hydrogen into the energy economy.

Furthermore, it must support implementation, both through appropriate regulations and through the promotion of cooperation with other countries and global companies, as well as through investment in infrastructure, and in research and development, industry and in collaboration with the academic world.

There are countries in Europe or the Middle East that have already started green energy production projects, and finally it was recommended to work to develop Israeli innovations in the field, in collaboration with the Innovation Authority and the Ministry of Energy.

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