Green Hydrogen's Potential in India: Economic Viability and Adoption Challenges
Key Ideas
- Green Hydrogen in India is gaining momentum due to lower renewable energy costs and decarbonisation goals.
- Challenges include higher cost compared to grey and brown hydrogen, requiring price drops and efficiency improvements.
- Early adopters like refineries and ammonia production show promise, with potential for green ammonia exports.
- Effective storage and transportation solutions are crucial for wide-scale adoption of green hydrogen.
The paper 'Green Hydrogen: Gaining Traction for Energy Transition in India' highlights the increasing importance of Green Hydrogen (GH2) in India's energy landscape. It emphasizes that the momentum of GH2 will be fueled by lower costs of renewable energy and the country's commitment to decarbonisation. However, the current cost of Green Hydrogen poses a significant challenge, being around 1.75 times higher than grey hydrogen and 1.50 times higher than brown hydrogen. To enhance the economic viability, the paper suggests a 35%-40% reduction in electrolyser prices and a 12%-14% improvement in efficiency, in addition to supportive policies. It also discusses the potential early adopters of GH2, such as refineries and ammonia production, which could even lead to the export of green ammonia. Furthermore, the paper stresses the importance of developing efficient storage and transportation solutions for green hydrogen and its derivatives to ensure its widespread adoption in India's energy sector.
Topics
India
Renewable Energy
Energy Transition
Decarbonisation
Economics
Ammonia Production
Policy Support
Electrolyser Technology
Refineries
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