India's Green Hydrogen Revolution: Driving Towards Economies of Scale
Key Ideas
  • Indian corporations like Reliance Industries and Adani Group are heavily investing in green hydrogen production, aligning their strategies with economies of scale.
  • IRENA estimates green hydrogen could achieve cost competitiveness by 2030, making it comparable to grey hydrogen, thus attracting significant investments in the sector.
  • Countries like Germany, the US, and Japan are also making substantial advancements in green hydrogen technology and infrastructure to drive market competitiveness globally.
  • India's green hydrogen initiatives are crucial for achieving energy security, decarbonisation, and economic growth while promoting research, manufacturing, and workforce development in the sector.
India is making significant strides in its green hydrogen push, with a focus on achieving economies of scale to drive down costs and enhance market competitiveness. The high cost of green hydrogen, mainly due to the capital-intensive electrolysis process, remains a primary challenge. However, deployment at a larger scale allows for more efficient supply chains, optimized operations, and reduced per-unit costs for electricity and water. Indian corporations like Reliance Industries, Adani Group, Indian Oil Corporation, and the National Thermal Power Corporation are heavily investing in green hydrogen production to align with economies of scale principles. Additionally, the International Renewable Energy Agency (IRENA) estimates that green hydrogen could reach cost competitiveness comparable to grey hydrogen by 2030. Countries like Germany, the US, and Japan are also advancing in green hydrogen technology and infrastructure development. India's green hydrogen initiatives are crucial for achieving energy security, decarbonisation, and economic growth objectives. To further drive the green hydrogen sector, India needs to promote research and development, introduce incentives for domestic production, encourage investments, develop storage and transportation infrastructure, and invest in workforce training and education programs.
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