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According to the EY India SED Fund report, India will require 115 GW renewable power generation capacity and 50 billion litres demineralized water supply in order to reach the 5 million tonnes goal of green hydrogen by 2030.
According to a statement, the demand for green hydrogen will be driven by industrial feedstock-based applications in the next decade.
The price parity of green and grey hydrogen production will determine speed and scale for the transition, according to the EY-SED Fund Report titled ‘Accelerating Green Hydrogen Economy’. It was released at the CII conference on Green New Energy For a Net Zero India’ in Bengaluru.
This report shows that India will need to have 115 GW of power generation capacity, 50 billion litres demineralized water supply and 50 million tonnes of green hydrogen in order to achieve its ambition of producing 5 million tonnes of carbon dioxide by 2030.
This scale is illustrated by the current installed capacity for renewable power generation in India at 113 GW as per May 2022.
“The COVID-19 pandemic’s impact and ongoing conflict in the world are stark reminders that India’s dependence upon energy imports and other commodities tied to global supply chains can pose a threat to its strategic interests. Green hydrogen is a promising low-carbon feedstock and energy carrier that can be used in industrial applications. This boon will help India’s long-term energy security and sustainability, as well as self-reliance.
The levelised cost of green hydrogen production and storage (LCOH) is currently Rs 400/kg. Around 40-50 per cent of this cost can be attributed to the renewable energy power plant, 30-40 per cent for electrolyser stack and balance of system, including demineralised water supply and 20-30 per cent for compressed storage, the report said. Sivaram Krishnamoorthy, Deputy Director, SED Fund, said, ”The race to decarbonise energy-intensive industries depends on the competitiveness of green hydrogen supply chain and enabling policy ecosystem to make this happen. State governments have a key role to play in implementing recently notified green hydrogen policy and green energy open-access rules 2022 to support the industry in reducing the cost of production”.
It suggested that renewable power generation costs and supply of GH2 could be reduced by waiving intra-state transmission fees, waivers, clarity, certainty, and open access charges. This would allow for the banking of excess energy, fungibility and purchase obligation of renewable energy.