India May Attract $125 Billion Investment In Green Hydrogen By 2030 : Report
(MENAFN- KNN India) New Delhi, Apr 5 (KNN) India has the potential to attract a massive USD 125 billion in cumulative investments across the green hydrogen value chain by 2030, according to a new report from investment bank Avendus Capital.
The report, titled "Green Hydrogen – The Next Frontier in energy Transition," highlights the decarbonisation potential of green hydrogen and the key role it could play as India transitions to a greener economy.
"This growth will be driven by rising sustainability focus, demonstrated commercial viability, ever-expanding use cases and a strong regulatory push," the Avendus report states.
With some of the world's cheapest renewable electricity costs, abundant fresh water supply, and an emerging global manufacturing hub, India is well-positioned to produce green hydrogen at competitive prices.
The report sees initial serious investments coming from partnerships between standalone companies and integrated players aggregating capabilities and infrastructure for green hydrogen derivatives.
While domestic consumption of green hydrogen by commercial and industrial users will drive early investments, the steel industry is expected to account for the largest share of offtake contracts in the near-term.
This is due to the impending Carbon Border Adjustment Mechanism in the European Union.
"India is home to one of the cheapest renewable electricity costs globally, has abundant availability of fresh water and is emerging as a global manufacturing hub -- three essential elements required for the production of green hydrogen at a competitive cost," said Prateek Jhawar, Managing Director & Head of Infrastructure & Real Assets Investment Banking at Avendus Capital.
The Avendus report charts the course from green hydrogen production methods to its wide-ranging applications, underscoring significant opportunities while dispelling myths around the fuel's economic viability.
(KNN Bureau)
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