Green Hydrogen (GH2) and green ammonia are future fuels of the world. According to a report by Avendus Capital, Green Hydrogen and green ammonia will bring in investments of USD 125 billion (about Rs 10.43 lakh crore) in India by 2023.
The report highlights that the growth of green fuels will be propelled by an increased emphasis on sustainability, commercial viability, and government initiatives aimed at expanding the usage of green fuels through stringent regulations.
GH2 is produced by utilizing power from renewable energy sources via the electrolysis of water, emitting no greenhouse gases in the process. Globally, research is underway to position green hydrogen as a fuel to aid countries in achieving their net-zero emission targets.
GH2 is being hailed as the fuel of the future, with significant research and development investments focused on determining its commercial viability in transportation, power generation, aviation, and other industrial applications.
Although production costs have decreased by over 40 percent in the last eight years, they still remain relatively high for commercial use, according to the Avendus Capital report.
India currently has an annual hydrogen demand of approximately 6MMTPA and ranks as the third-largest consumer of hydrogen globally. With its status as one of the world’s cheapest renewable electricity producers, abundant water sources, and emergence as a global manufacturing hub, India possesses the essential elements necessary for producing cost-competitive green hydrogen.
To foster the green hydrogen industry, the Indian government has incentivized electrolyzer and green hydrogen production through an outlay of over USD 2.4 billion in the form of Production Linked Incentive schemes (PLIs) and other incentives under the National Hydrogen Mission. State governments have also announced several incentives to bolster the green hydrogen ecosystem.
The recent tender by SECI under the SIGHT program witnessed the participation of numerous large and upcoming Indian corporates in the green hydrogen value chain. Additionally, many global electrolyzer manufacturers such as John Cockerill, Stiesdal, and Ohmium have initiated their India green hydrogen plans through various joint ventures and strategic partnerships.
Countries like Europe and Japan, which lack the necessary resources to produce green hydrogen at competitive costs, have announced import plans and are establishing import-focused infrastructure near ports. India, with its significantly lower production costs, geographical proximity to importing nations, and existing export infrastructure, is being viewed as a major green hydrogen hub.
The Indian government has already identified three green hydrogen/ammonia hubs located near the ports of Kandla, Paradip, and Tuticorin. Numerous green hydrogen players are forging strategic partnerships with existing ammonia facilities near ports to meet export demand and establish export-oriented offtake arrangements.
(With inputs from ANI)
