New Delhi: India will require an estimated $15 billion in public and private funding to set up 15 gigawatt (GW) of green hydrogen electrolyser capacity by 2030, according to industry body, India Hydrogen Alliance (IH2A).
This electrolyser capacity is expected to produce 3 million metric tonnes (MMT) of green hydrogen and would need 30 GW of renewable energy.
IHA is an industry coalition of global and Indian firms committed to create a hydrogen value-chain and economy in India. These findings were presented by the industry body in the first of a six-part consultation series organised by NITI Aayog and the industry on green hydrogen demand in different sectors.
The first series identified various key challenges that need to be addressed in meeting national ambitions and has called out funding, hydrogen standards, electrolysers manufacturing, creation of carbon market and hydrogen clusters as immediate priorities for India.
The 15 GW capacity ambition is one the of three scenarios that IH2A considered for arriving at the indicative national figures. It also gave a probable break-up for setting up 15 GW capacity, consisting of three 2 GW, six 1 GW, and six to seven 400 MW to 500 MW installed electrolyser capacity at eight to nine national green hydrogen hubs or clusters.
The remaining two scenarios were to set up 25 GW and 35 GW electrolyser capacity in the next 10 years. It is important to note here that these figures are indicative and are comparable to similar sized global projects for the same period.
Under the second scenario of installing 25 GW electrolyser capacity in 10 years, IH2A estimated that about $25 billion investment would be required. This capacity will produce 5 MMT of green hydrogen and require about 50 GW renewable energy capacity which could come from new hydrogen-dedicated RE capacity and about 22 GW from RE excess capacity.
This 25 GW could comprise eight 2 GW, eight 1 GW, and 8 to 10 400 MW to 500 MW installed electrolyser capacity at 12 to 16 national hydrogen clusters.
IH2A thinks that the second scenario is the more probable one among the three.
For the third case, it assumed the setting up of 35 GW electrolyser capacity by 2030 to produce 7 MMT of green hydrogen. IH2A noted that this would require about $35 billion investment from public and private sectors and a renewable energy capacity of about 70 GW.
This 35 GW capacity could consist of 10, 2 GW, and 10, 1 GW along with 10 to 12 400 to 500 MW electrolyser installed capacity at 20 national hydrogen hubs.
The stakeholder consultation covered the importance of a visionary national target that is critical to reducing the prices of green hydrogen, with a view expressed by some stakeholders that India should target 5 MT of domestic green hydrogen production by 2030 serving both existing and new applications.
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