India’s market size and growth potential of green hydrogen is substantial and has room to develop. Green hydrogen is turning out to be a crucial solution as the nation works to lower its carbon emissions and make the transition to a sustainable energy future.
A study by NITI Aayog and RMI identified green hydrogen which is produced using renewable energy by electrolyzing water, can improve energy security and assist lower greenhouse gas emissions for India.
Additionally, according to the analysis, India’s market for green hydrogen might grow to $8 billion by 2030, or nearly 10% of the world’s needs. Fertilisers, refining, methanol, maritime shipping, iron & steel, and transportation are among the industries the report lists as having a potential use for green hydrogen.
According to industry experts, the current green hydrogen market in India is valued at $25 million based on a 5% market penetration in the automobile sector, which is expected to expand exponentially in the next 10 years
Here are some insights into the market size and growth potential of green hydrogen in India:
- Market Size: India’s green hydrogen market is expected to witness substantial growth in the coming years. According to various reports, the market size is projected to reach several billion dollars by 2030.
- Government Support: The Indian government has recognized the potential of green hydrogen and has introduced policies and initiatives to support its development. The National Hydrogen Energy Mission has been launched to promote the production and utilization of hydrogen in the country, including green hydrogen.
- Renewable Energy Potential: India has abundant renewable energy resources, including solar and wind power, which can be utilized to produce green hydrogen through electrolysis. The availability of these resources positions India well for the production of cost-effective green hydrogen.
- Industrial Applications: Green hydrogen can be utilized across various industries such as transportation, power generation, and manufacturing. It can be used as a fuel for fuel cell vehicles, a feedstock for ammonia production, and as an energy storage medium.
- International Collaborations: India has also been actively engaging in international collaborations to promote green hydrogen. It has joined the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) and has signed agreements with countries like Australia and Japan to explore opportunities for collaboration in the hydrogen sector.
- Research and Development: The Indian government, along with research institutions and industry players, is investing in research and development to enhance green hydrogen technologies, reduce costs, and improve efficiency. This focus on R&D will contribute to the growth and maturity of the green hydrogen market in India.
- Job Creation and Economic Growth: The development of the green hydrogen sector in India has the potential to create significant job opportunities and contribute to economic growth. It can foster the growth of new industries, attract investments, and promote local manufacturing and innovation.
India has a sizable market for green hydrogen and significant growth potential. The nation is in a good position to advance its clean energy transition while becoming a prominent player in the global green hydrogen market because of favorable government policies, an abundance of renewable resources, and growing international collaborations.
Several factors influence the growth potential of green hydrogen in India, including:
- The decreasing cost of electrolysis technology and renewable electricity
- The government’s activities and supportive policies, like the National Hydrogen Mission
- The growing involvement and investment of businesses like NTPC, GAIL, and Reliance Industries
- The global cooperation and growing momentum for the hydrogen economy
Green hydrogen is anticipated to be essential to India’s economic growth and efforts to achieve net-zero emissions by 2070. According to the company’s most recent research, the global market for green hydrogen, which was valued at US$ 692.15 million in 2022, will increase to US$ 42.40 billion by 2031, with a promising CAGR of 58.11% from 2023 to 2031.
The green hydrogen business grew as the use of nuclear and green hydrogen fuel increased recently. The use of green hydrogen has expanded as a result of the growing acceptance of sustainable energy in recent years to lessen the environmental load.
Federal regulations supporting it and the mounting environmental concerns of rising carbon emissions from fossil fuels are expected to stimulate demand for the hydrogen economy. This tendency will probably present a favorable atmosphere for the sector’s expansion. The global market for green hydrogen is growing as more people become aware of using hydrogen as a fuel.
The fact that hydrogen only produces water and heat when combined with oxygen makes it an advantageous fuel carrier. Fuel cells powered by hydrogen emit no greenhouse gases when used. Recent growth in the business has been fueled by escalating environmental challenges. The growing quest for alternative energy sources in the industrialised and developing globe is what is driving the need for green hydrogen and the growth of its industry.
We At GH2 Solar
GH2 Solar is a technology-oriented company that has vast experience in executing oil and refineries solar rooftop & large-scale utility projects across India. Being already experienced in the renewable sector, now we are working on the development of “Green Hydrogen” & HAAS (Hydrogen as a Service). If you are planning to adopt Green Hydrogen, you can connect with GH2 Solar to get all information about the same.
For more information, please give us a call at 1800-102-8685
For more updates, follow us on Linkedin