Green Hydrogen Begins to Outprice Gray Hydrogen in India
Key Ideas
  • Hydrogen produced using renewable power is now cheaper than natural gas-based hydrogen in India.
  • India, heavily reliant on natural gas imports, faces high costs for gray hydrogen production.
  • The cost balance is shifting towards green hydrogen, historically more expensive to produce.
  • This change reflects a potential shift towards a more sustainable and cost-effective energy source in India.
In India, the cost dynamics of hydrogen production are undergoing a significant shift. A producer in the country has announced that hydrogen generated from renewable sources is now being sold for a lower price than hydrogen derived from natural gas. This development is especially relevant in India, where the reliance on imported natural gas has contributed to the high costs associated with gray hydrogen production. The shift towards green hydrogen, which has traditionally been more expensive to produce, is attributed to the increasing competitiveness of renewable energy sources. This transformation indicates a potential move towards a more sustainable and economically viable energy sector in India. By reducing its dependence on costly natural gas imports and embracing locally produced green hydrogen, India could pave the way for a greener and more self-sufficient energy future.
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