A recent report by ICRA highlights that India can become a competitive source for green hydrogen globally but subsidies by certain countries could harm its export competitiveness.
According to research reports by ICRA on the Indian renewable energy sector, India has the potential to emerge as one of the most competitive sources for green hydrogen and embedded products like green steel and ammonia globally, thanks to the country’s low cost of renewable power generation.
However, certain subsidies offered by countries like the US and European Hydrogen Bank could adversely affect the export competitiveness of India’s GH2 industry.
The reports suggest that by 2050, hydrogen and fuels derived from it will contribute 17% to the global energy mix, where electrification is unviable. NITI Aayog predicts that India’s domestic hydrogen demand will increase from 6 MT per annum in 2020 to 25-28 MT per annum in 2050, of which 20 MT will be contributed by the industry.
The reports also highlight the need for regulatory support and incentive mechanisms to develop domestic electrolyser manufacturing and reduce the capital cost of electrolysis.
