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ICRA: Some Countries Might Affect Export Competitiveness of the Indian GH2 Industry

According to recent research by ICRA, India has the potential to become a globally competitive supplier of green hydrogen, (Indian GH2 Industry) but it may be Affect Export Competitiveness to other nations.

India has the potential to become one of the most competitive global sources for green hydrogen and embedded products like green steel and ammonia, according to research papers by ICRA on the Indian renewable energy sector. This is due to the country’s cheap cost of renewable power generation.

However, some subsidies provided by nations like the United States and the European Hydrogen Bank may harm the export competitiveness of India’s GH2 sector.

Last month ICRA published a report for the Indian Green Hydrogen Industry, in which ICRA stated “The Government of India (GoI) has recently notified a “Green Hydrogen Policy” in February 2022, in line with its strong policy focus on renewable energy, a path of net zero energy transition by 2070.”

According to that ICRA report, Mr. Girishkumar Kadam, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA, said, “The policy of the Ministry of Power of the Government of India (GoI) for green hydrogen has many supportive measures and thus remains a positive step. Even in a scenario where Green Hydrogen is used to meet 30% of hydrogen consumption by 2030, the additional renewable (RE) capacity requirement is expected to be substantial at roughly 60 GW. This goes above and beyond the RE addition to satisfy all of India’s energy needs. According to current estimates, Green Hydrogen continues to be more expensive than Grey Hydrogen by roughly US$ 3.5–4 per kilogram from the standpoint of the industrial off-taker. In addition to the cost of RE procurement, the cost competitiveness of Green Hydrogen would continue to depend on a decrease in capital costs and an increase in the electrolyzer’s energy efficiency level.”

Source: PSU Watch

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