April 4, 2024
While domestic commercial and industrial models are expected to drive initial investments, the steel industry is anticipated to lead in off-take contracts
Green hydrogen is gaining traction as the fuel of the future, with substantial research and development investments across various sectors
he report underscores the competitiveness of green hydrogen, with production costs dropping by over 40% in the past eight years
The growing attractiveness of green hydrogen is bolstered by its clean attributes and high energy content, positioning it as a key player in the global energy transition
A report by investment banking firm Avendus Capital forecasts a significant surge in investments, amounting to US$ 125 billion in India’s green hydrogen (GH2) and green ammonia sectors by 2030. Titled ‘Green Hydrogen, The Next Frontier In Energy Transition’, the report attributes this growth to several factors including an increasing emphasis on sustainability, demonstrated commercial viability, expanding use cases, and robust regulatory support.
GH2, produced through electrolysis of water using renewable energy sources, stands out for its emission-free nature. It is positioned as a crucial fuel in achieving net-zero emission targets globally. Prateek Jhawar, Managing Director of Avendus Capital, highlights India’s advantageous position with its low renewable electricity costs, abundant freshwater resources, and emerging status as a global manufacturing hub, all essential for cost-effective green hydrogen production.
Jhawar notes the emergence of serious players in the sector, forming partnerships to leverage capabilities and infrastructure for GH2 derivatives. While domestic commercial and industrial models are expected to drive initial investments, the steel industry is anticipated to lead in off-take contracts, particularly with the implementation of the Carbon Border Adjustment Mechanism in the EU.
Green hydrogen is gaining traction as the fuel of the future, with substantial research and development investments across various sectors such as transport, power, aviation, and shipping. The report underscores the competitiveness of green hydrogen, with production costs dropping by over 40% in the past eight years, and further reductions expected, potentially reaching parity with blue hydrogen, primarily derived from natural gas.
The growing attractiveness of green hydrogen is bolstered by its clean attributes and high energy content, positioning it as a key player in the global energy transition. As investments continue to pour into this promising sector, India stands poised to play a significant role in shaping the future of clean energy.
Source: Economic Times