India’s green hydrogen market to be $8 billion by 2030: Niti Aayog 

 

India’s government think-tank, Niti Aayog, in collaboration with the Rocky Mountain Institute, USA, has come out with a report on ‘Harnessing Green Hydrogen Opportunities for Deep Decarbonisation in India’, in which it says that the Indian market for green hydrogen would be $ 8 billion, and electrolyser market, $ 5 billion by 2030. 

Here are excerpts from the report:  

• From a price parity basis alone, green hydrogen’s share of this demand could grow from 16% in 2030 to almost 94% by 2050. This translates to an implied cumulative electrolyser capacity demand of 20 GW by 2030 and 226 GW by 2050, promising a sizeable opportunity for indigenous manufacturing of a global emerging energy technology. The cumulative value of the green hydrogen market in India could be $8 billion by 2030 and $340 billion by 2050.  

• Electrolyser market size could be approximately $5 billion by 2030 and $31 billion by 2050. Adoption of green hydrogen will also result in 3.6 giga tonnes of cumulative CO2 emissions reductions between 2020 and 2050.6 Energy import savings from green hydrogen can range from $246 billion to $358 billion within the same period. 

• The government should create an interdisciplinary Project Management Unit (PMU) with globally trained experts. The PMU should dedicate full-time resources to effectively implement the mission. At the policy level, an inter-ministerial mechanism should be instituted to coordinate across the efforts of the various ministries and departments required to achieve the target of the mission. 

• The roadmap should also identify a timeline and scale of manufacturing support for electrolysers. India may aim for 25 GW of electrolysers by 2030, while also investing $1 billion in R&D to catalyse the development of commercial green hydrogen technologies across the value chain. Radically improving the speed of regulatory clearances coupled with preferential treatment in public tenders will help catalyse local manufacturing. Grand challenges, public-private venture capital and financing test bench infrastructure could be part of the R&D investments.