Green Hydrogen and Green Ammonia to draw investments worth US$ 125 bn

The report attributes to aspects such as growing importance of sustainability, high potential of commercial viability, growing use cases and regulatory support from the government

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

Recent Articles

India’s pharma exports reach US$ 27.9 bn in FY24

April 24, 2024

In the fiscal year 2023-24, India’s drugs and pharmaceuticals exports …

Read More

Economic growth driven by strong investment demand: RBI Bulletin

April 24, 2024

In its April 2024 bulletin, the Reserve Bank of India …

Read More

Indian startups raise US$ 2 bn in Q1 of FY24: Tracxn

April 23, 2024

Indian startups managed to secure US$ 2 billion in funding …

Read More