Green hydrogen is a versatile fuel which may be used as an energy store, fuel and feedstock across multiple sectors. Refining and fertiliser industries are expected to be early adopters. These sectors already account for more than 90% of current hydrogen demand in the country and need minimal incremental infrastructure. Scale up in capacity, technology improvements and policy incentives are expected to reduce cost of green hydrogen to USD 2.6/ kWh by 2027.
Figure 4: Green hydrogen production cost breakup, USD/ kg
Source: BRIDGE TO INDIA research
This report provides an overview of green hydrogen supply chain, cost of production, key challenges and government support required to kickstart growth of the sector. It is available to all subscribers of India Renewable Market Brief series.