India's Green Hydrogen Journey: Opportunities and Challenges Ahead
Key Ideas
- India positioning itself as a key player in green hydrogen, focusing on export and manufacturing.
- Challenges include cost viability, electrolyser supply chain readiness, and limited bankability of offtake agreements.
- Companies like L&T Electrolysers and Welspun New Energy are actively involved in green hydrogen initiatives.
- The development of a robust vendor ecosystem, streamlined regulations, and long-term offtake agreements are crucial for growth.
India is making significant strides in the green hydrogen space, aiming to not only be a user but also an exporter and manufacturing hub. The National Green Hydrogen Mission is providing momentum to the sector, although concerns remain regarding cost viability, supply chain readiness, and offtake agreement bankability. At a recent conference on Green Hydrogen in India, industry stakeholders shared insights on current initiatives and the road ahead.
L&T Electrolysers in Surat is focusing on alkaline technology and indigenously manufacturing electrolyzers to enhance competitiveness. They stress the importance of developing a local vendor ecosystem for scaling up. Welspun New Energy is involved in multiple green hydrogen verticals, facing challenges with state policy disparities and regulatory complexities.
ReNew is expanding into green hydrogen derivatives with projects in Odisha and global markets. They highlight the need for long-term offtake agreements for financial viability. Overall, the domestic demand for green hydrogen is fragmented, requiring mandates to create more robust demand. However, ecosystem development, including manufacturing and infrastructure, needs to catch up to support this demand growth.
Despite challenges, India is optimistic about its green hydrogen future, with a focus on export potential and a unified grid. To succeed, the country needs to address challenges like supply chain readiness, regulatory harmonization, and domestic ecosystem development.
Topics
Policy
Certification
Renewable Energy
Regulations
Manufacturing
Global Market
Supply Chain
Export
Offtake Agreements
Latest News