Challenges and Opportunities in India's Green Hydrogen Sector
Key Ideas
- Export demand challenges due to geopolitical tensions and policy uncertainties are slowing down the growth of green hydrogen in India.
- Government efforts are focused on building domestic demand and implementing pilot projects across various sectors to promote green hydrogen adoption.
- Green hydrogen production costs are currently higher than grey hydrogen, hindering commercial viability, but the industry is optimistic about its future potential.
- Initiatives like the National Green Hydrogen Mission and SIGHT programme aim to boost green hydrogen production capacity and support the transition to cleaner energy sources.
Stakeholders in India's green hydrogen sector are optimistic about the future growth potential of the industry, despite facing challenges in export demand driven by geopolitical tensions and policy uncertainties in key markets. The Ministry of New and Renewable Energy highlighted the importance of market visibility and the impact of global factors like the stalled IRA in the US on the transition to green hydrogen. While weak export markets pose hurdles, efforts are underway to enhance domestic demand and explore opportunities for green hydrogen in various sectors like transportation and fertilizers. The industry acknowledges that green hydrogen is not yet cost-competitive with grey hydrogen but believes in its future prospects, drawing parallels to the early stages of renewable energy adoption. Government initiatives such as the National Green Hydrogen Mission and measures like the SIGHT programme aim to accelerate the transition to green hydrogen by supporting production capacity and electrolyser manufacturing. Despite the current challenges, stakeholders remain positive about the long-term prospects of green hydrogen in India.
Topics
Public Transit
Renewable Energy
Government Initiatives
Cost Competitiveness
Policy Impact
Hydrogen Production
Green Ammonia
Domestic Demand
Export Market Challenges
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