(MENAFN- Trend News Agency)
Government think-tank NITI Aayog on Wednesday suggested a
production-linked incentive (PLI) scheme for electrolyser and fuel
cells, two crucial components for the development of the domestic
green hydrogen industry. The cumulative value of the green hydrogen
market in the country could be $8 billion by 2030 and $340 billion
by 2050, it said.
While India consumes around 6 million tonne (MT) of hydrogen
annually mostly from ammonia plants and refineries; the consumption
might go up 5-10 times led by demand from heavy-duty trucking and
steel sectors by 2050.
Green hydrogen comprises a negligible part of the total
consumption now. A vibrant green hydrogen market can lead to a
reduction in India's energy import bill which is currently pegged
at over $160 billion and its decarbonisation target.
The think-tank, in a report on“harnessing green hydrogen –
opportunities for deep decarbonisation in India”, said with proper
policy and fiscal support and taking advantage of the low-cost
renewable energy, almost 94% of the hydrogen demand in the country
can be met by green hydrogen by 2050, up from 16% in 2030.
“This translates to an implied cumulative electrolyser capacity
demand of 20 GW by 2030 and 226 GW by 2050, promising a sizeable
opportunity for indigenous manufacturing. Electrolyser market size
could be approximately $5 billion by 2030 and $31 billion by 2050,”
it said.
While a target-backed government incentive can greatly
accelerate manufacturing, it said,“investment in larger equipment,
advancement in manufacturing operations, better utilisation of
machinery and aggregated procurement are the biggest factors to
reduce manufacturing costs related to fuel cells.”
Manufacturing costs dominate the total cost of fuel cells,
whereas the share of materials cost is much lower. An increased
scale in production can bring the manufacturing costs down
dramatically. RMI, an independent think-tank that supports India's
clean energy transition, estimates that fuel cell demand through
heavy-duty trucking alone presents a $4 billion market opportunity
by 2050 in India.
MENAFN30062022000187011040ID1104455791
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.