The ETC estimate a five-fold demand increase for green hydrogen in India between now and 2050. Green hydrogen, a zero-carbon emitting energy source, is produced using renewable electricity and can displace fossil fuel usage across key sectors such as steel.
The key barrier in the past has been green hydrogen’s relatively high cost. However, India’s falling price of renewable electricity combined with government policy support means it’s on track to reach fossil fuel cost-parity by 2030 (or sooner). In some locations, it could become the least-cost option. Green hydrogen will, therefore, play an important role in India’s low-carbon transition. This is particularly true for its carbon intensive sectors, which are expected to make up 80 per cent of India’s green hydrogen demand– namely steel, ammonia and petrochemicals. To illustrate, the ETC and TERI forecast that green hydrogen based steel and ammonia could compete with traditional fossil fuel based production methods by the early 2030s.
The Energy Transitions Commission (ETC) and India’s Energy and Resources Institute (TERI) partnered to develop a first-of-its kind assessment of the potential role of hydrogen in India. Using sophisticated modelling, the report forecasts green hydrogen’s cost reduction trajectories, potential end-uses, production routes, and value chain considerations. It also assesses the role of India’s industrial clusters in facilitating green hydrogen scale up.