The article is authored by Shalin Sheth, Founder & Managing Director, Advait Infratech
India's pivot towards a sustainable economy has unfurled myriad opportunities for industries to explore and invest in renewable energy solutions. Green Hydrogen, a groundbreaking technology with the potential to revolutionise the energy sector, stands out amid these solutions.
Green Hydrogen (GH2) is generated by cleaving water into hydrogen and oxygen by deploying renewable energy sources such as solar or wind power. This zero-emission fuel finds applications in several domains, including power generation. Its production necessitates electrolysers, gadgets that use electricity to separate water molecules.
India is among the biggest energy consumers in the world, and its demand is anticipated to spike substantially in the upcoming years. The Indian government has targeted producing 450 gigawatts (GW) of renewable energy by 2030, requiring significant investment in Green Hydrogen production. The country's energy mix is governed by fossil fuels, which foment air pollution and greenhouse gas emissions. Nevertheless, the Indian government has launched several initiatives in recent years to encourage the adoption of renewable energy sources and curb the country's dependence on fossil fuels.
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| Shalin Sheth |
One such initiative is the National Hydrogen Energy Mission, initiated in 2021, which strives to establish a hydrogen ecosystem in India and promote Green Hydrogen as a fuel. This mission has targeted producing one kilogram of Green Hydrogen at less than $2 by 2023 and reducing the cost to less than $1.5 per kilogram by 2025.
The Indian Green Hydrogen Economy is poised to generate fresh opportunities for local electrolyser manufacturers. As the production of Green Hydrogen rises, the demand for these devices is anticipated to burgeon. End-to-end electrolyser manufacturing can emerge as a profitable industry in India, providing employment opportunities and driving economic growth.
India imports most of its electrolysers from countries such as Japan and Germany. Nevertheless, the demand for these devices is expected to surge in the forthcoming years, creating a potential opportunity for domestic manufacturers. Indian manufacturers can capitalize on the government's push for renewable energy and Green Hydrogen to establish themselves as key players in the industry.
Some Indian companies have already acknowledged the potential of the Green Hydrogen economy and commenced investing in electrolyser manufacturing. For instance, Tata Motors has collaborated with Australia's Origin Energy to explore the potential of Green Hydrogen in India. The companies intend to launch a pilot project to test the viability of Green Hydrogen-powered buses in India.
In addition to the demand for electrolysers, the growth of the Green Hydrogen economy can also create opportunities for Indian firms in other domains. According to a report by ResearchAndMarkets, the global electrolyser market is expected to grow from INR 30 cr in 2020 to INR 200 cr by 2025, at a CAGR of 48.9%. Indian companies can invest in building hydrogen refuelling stations for fuel cell vehicles or explore the potential of Green Hydrogen in industrial processes.
However, before the Indian Green Hydrogen Economy can take flight, specific challenges must be addressed. Presently, the production of Green Hydrogen is more expensive than the production of hydrogen from fossil fuels, which impedes its adoption. Furthermore, the cost of electrolysers constitutes a significant barrier to the widespread adoption of Green Hydrogen.
To surmount these challenges, the Indian government is extending incentives and subsidies to encourage the adoption of Green Hydrogen. The government has also unveiled plans to launch a Green Hydrogen auction mechanism to drive down the cost of production.
In conclusion, Green Hydrogen is a promising solution for India's transition to a sustainable economy. The Indian Green Hydrogen Economy has the potential to unlock fresh opportunities for local electrolyser manufacturers and spur economic growth. Nonetheless, to fully realise the potential of Green Hydrogen, India must tackle the challenges related to the cost of production and adoption.
The Indian Green Hydrogen Economy is poised to generate fresh opportunities for local electrolyser manufacturers. As the production of Green Hydrogen rises, the demand for these devices is anticipated to burgeon. End-to-end electrolyser manufacturing can emerge as a profitable industry in India, providing employment opportunities and driving economic growth.
India imports most of its electrolysers from countries such as Japan and Germany. Nevertheless, the demand for these devices is expected to surge in the forthcoming years, creating a potential opportunity for domestic manufacturers. Indian manufacturers can capitalize on the government's push for renewable energy and Green Hydrogen to establish themselves as key players in the industry.
Some Indian companies have already acknowledged the potential of the Green Hydrogen economy and commenced investing in electrolyser manufacturing. For instance, Tata Motors has collaborated with Australia's Origin Energy to explore the potential of Green Hydrogen in India. The companies intend to launch a pilot project to test the viability of Green Hydrogen-powered buses in India.
In addition to the demand for electrolysers, the growth of the Green Hydrogen economy can also create opportunities for Indian firms in other domains. According to a report by ResearchAndMarkets, the global electrolyser market is expected to grow from INR 30 cr in 2020 to INR 200 cr by 2025, at a CAGR of 48.9%. Indian companies can invest in building hydrogen refuelling stations for fuel cell vehicles or explore the potential of Green Hydrogen in industrial processes.
However, before the Indian Green Hydrogen Economy can take flight, specific challenges must be addressed. Presently, the production of Green Hydrogen is more expensive than the production of hydrogen from fossil fuels, which impedes its adoption. Furthermore, the cost of electrolysers constitutes a significant barrier to the widespread adoption of Green Hydrogen.
To surmount these challenges, the Indian government is extending incentives and subsidies to encourage the adoption of Green Hydrogen. The government has also unveiled plans to launch a Green Hydrogen auction mechanism to drive down the cost of production.
In conclusion, Green Hydrogen is a promising solution for India's transition to a sustainable economy. The Indian Green Hydrogen Economy has the potential to unlock fresh opportunities for local electrolyser manufacturers and spur economic growth. Nonetheless, to fully realise the potential of Green Hydrogen, India must tackle the challenges related to the cost of production and adoption.
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