India will need 60 – 100 GW of installed electrolyzer capacity for the envisaged green hydrogen production capacity of 5 million metric tonnes (MMT) per annum by 2030. This information was shared by power minister R.K. Singh recently.
The minister said green hydrogen projects will be implemented largely through private investments at suitable locations based on land and water resources availability.
India targets a green hydrogen production capacity of at least 5 MMT per annum by 2030 under its National Green Hydrogen Mission. The Mission has been allocated INR 19,744 crore initially, including INR 17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, INR 1,466 crore for pilot projects and hydrogen hubs, INR 400 crore for R&D, and INR 388 crore for other components.
The costs of the electrolyzers and input renewable energy are the two major determinants of green hydrogen production cost. The costs of capital, supply and treatment of water, storage and distribution, conversion of hydrogen into suitable derivatives, and enabling infrastructure would also contribute to the final delivered cost of green hydrogen for any particular application.
The Green Hydrogen Mission seeks to undertake the necessary steps to enable cost reduction in these aspects.
India consumes about 5 MMT of grey hydrogen annually, almost entirely in petroleum refining and manufacturing of ammonia for fertilizers. In fertilizer production, hydrogen is a crucial input for producing ammonia (NH3), which is used to produce urea and other fertilizers. In petroleum refining, hydrogen is mainly used for reducing the sulfur content of fuels (desulphurization) and converting heavier feedstocks into more valuable products.
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