New Delhi, 19 June (IANS). India has targeted to create a 5 million metric tonnes (MMT) green hydrogen production capacity by 2030. It is important to present the demand for large -scale green hydrogen to achieve this goal. According to a report on Thursday, export opportunities may increase the demand for green hydrogen to 1.1 MMT.
According to a joint report by Bain & Co., Confederation of Indian Industry (CII) and Rocky Mountain Institute (RMI), although this capacity can remain unused without equal incentives on the demand side.
The report outline the clear passage of how India can encourage the massive demand for green hydrogen and turn its goal into reality.
According to the report, existing industrial processes such as oil refining, fertilizer production and piped natural gas (PNG) distribution can create a demand of up to 3 MMT by 2030, including green hydrogen.
On the global front, the export of green hydrogen, ammonia and green steel can contribute 1.1 MMT, while public procurement of green steel for infrastructure can cause a demand of 0.6 MMT.
The report stated that even a small percentage of green hydrogen (10 percent in refining and 20 percent in fertilizers) can be achieved with a minimum cost increase. As the production costs continue to fall, these mix rates can be increased, so that the final users can enable high demand without pressure.
The report also highlights opportunities in specific areas such as chemicals, glass and ceramic. These industries already use hydrogen massively and small scale replacement with green hydrogen – especially for small players, who pay more for gray hydrogen, can increase additional demand up to 0.07 mm by 2030.
Another important suggestion in the report is to take advantage of public procurement. By compulsory the use of green steel in government projects like bridge, housing and railways, the government can act as an anchor customer and create long -term demand stability.
India’s growing strength and relatively low production cost in renewable energy also keeps it in good condition to avail global demand.
The report states that if India is able to meet only 5-7.5 percent of the green hydrogen imports of countries like the European Union and South Korea, then it can cause an additional 0.8–1.1 MMT demand.
Council co-chairman Vineet Mittal emphasized long-term offtec agreements, low-cost finance and input cost optimization requirement.
Sachin Kotak of Bain & Co. stated that the supply side is already expanding rapidly, but to meet the target of 2030, demand-party intervention is necessary to mix, public purchases and export strategies such as a mixture, public purchase and export strategies.
-IANS
SKT/
