India Aims to Promote the Green Hydrogen Industry with USD 2 Billion Incentive Program
- 29-Dec-2022 3:15 PM
- Journalist: Gabreilla Figueroa
New Delhi- The government of India strives to reduce the production cost for Green Hydrogen in the country as the price of electrolyzers and energy significantly impacts product prices. Beyond that, there are other expenses such as running costs, fees associated with energy Transmission and Distribution (T&D), wheeling charges, and particular local duties and taxes like the Goods and Services Tax (GST) in India. Additional elements that significantly impact the supplied cost of Hydrogen include the utilization factor, system design, distance to the demand center, and supply chain model. According to government officials, the decision would help the country increase its Green Hydrogen capacity and become one of the major players in the global market.
As per the NITI Aayog data, Green Hydrogen prices in India range between USD 4/kg to USD 7/kg, depending on the technology and the method used by the manufacturer. Major Indian players in Green Hydrogen production include Reliance Industries, Adani Group of Companies, Indian Oil Corporation, National Thermal Power Corporation (NTPC), and many others. These participants have major Hydrogen production proposals and are seeking Indian government support. The energy and power sector is a significant field requiring Green Hydrogen consumption.
Green Hydrogen is anticipated to rule the Hydrogen industry over time solely based on cost-competitiveness. It can be a significant factor for current consumption and new undeveloped investments even in 2030. According to official data, it can supply about 94% of the world's Hydrogen needs in 2050, up from 16% in 2030.
Regarding ocean shipping of Green Hydrogen from India in 2050 may be competitive with Hydrogen from nations like Australia and the United States. Indian Green Hydrogen might be marginally competitive even in 2030 in some regions. As per ChemAnalyst, the price of Green Hydrogen is anticipated to incline slightly in Q1 of 2023 as the requirement of renewable energy and production cost may govern the market sentiments of Hydrogen in India. In the next 5 to 6 years, the Indian government intends to increase the electrolyzer manufacturing capacity by ten times globally.