India's green hydrogen sector eyes up to 200 billion investment through 2030
New Delhi, Oct 27
India's ambitions to become a major producer of green hydrogen will be supported by investments of $180 billion-$200 billion through 2030, a report said on Tuesday.
High production costs, limited commissioned capacity, infrastructure gaps and evolving international certification requirements remain significant barriers to large-scale adoption, the report from CARE ESG Ratings Limited said.
Green hydrogen is increasingly being viewed not only as a decarbonisation tool but it is also linked to export competitiveness, energy security and India's ability to establish itself as a competitive producer of low-carbon industrial materials.
The report highlighted that sectors such as steel, fertilisers, refining and chemicals could benefit from green hydrogen push.
Indian steel exporters could face estimated costs of $70-190 per metric tonne on EU-bound shipments, potentially exceeding $270 per metric tonne where default emissions values apply.
The urgency is underscored by the European Union's Carbon Border Adjustment Mechanism (CBAM), which could impose carbon-linked costs on exports of emissions-intensive products.
"India's green hydrogen ambitions must translate into commercially viable projects, supported by reliable offtake agreements, competitive production costs and robust infrastructure," said Nikunj Dube, Chief Ratings Officer at CareEdge-ESG.
Green hydrogen currently costs nearly Rs 350-450 per kg, compared with Rs 160-200 per kg for conventional grey hydrogen.
Costs could decline to around $2.4 per kg by 2030 as renewable electricity becomes more competitive, electrolyser costs fall and projects scale up. Until then, adoption will depend partly on policy support, carbon pricing and assured industrial demand.
India consumes approximately 17-19 million metric tonnes of ammonia annually, primarily produced using natural gas. Green ammonia could reduce fossil-fuel import dependence and emissions.
Globally, announced low-emissions hydrogen projects could deliver 27 million tonnes per annum (Mtpa) by 2030, but operational projects, those under construction and those at final investment decision or with a strong likelihood of commissioning account for only slightly more than 6 Mtpa.
— IANS
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