Emerging trends in India’s green hydrogen ecosystem

Government Initiatives Drive Growth

The Indian government’s push towards green hydrogen is evident with the implementation of Production Linked Incentive (PLI) schemes, aimed at fostering the domestic production of electrolyzers and green hydrogen. Notable players like RIL, Greenko, Acme, Adani, L&T, Ohmium, and Hygenco have emerged as winners in the first tranche of PLI schemes, signalling a significant step towards sustainable energy production. Additionally, agreements between Indian and Japanese players for marketing green hydrogen in the Far East underscore the international potential of India’s green hydrogen sector.

Focus on Industrial Decarbonisation and Mobility Usage

Beyond industrial decarbonization, the development of green hydrogen for mobility usage is gaining traction, with OEMs such as Tata and Ashok Leyland unveiling prototypes. The Government of India (GoI) has issued guidelines for pilot projects in the transport sector, offering budgetary support to facilitate the adoption of hydrogen-fueled vehicles. Notably, H2 Internal Combustion Engine (H-ICE) technology is gaining prominence over Fuel Cell Electric Vehicles (FCEVs) due to its relative simplicity and lower costs.

Commercial Production on the Horizon

Electrolyzer players like L&T are gearing up for commercial-scale production, with plans to commence production from H2FY25. Cost reductions are anticipated, with L&T aiming for cost structures closer to Chinese counterparts, who are known for their competitiveness. Recent data from Platts indicates a decline in green hydrogen production costs in Asia, further bolstering the feasibility of large-scale adoption.

Key Corporate Developments

Corporate entities are actively contributing to the growth of the green hydrogen ecosystem in India. L&T’s ambitious plans to expand electrolyzer manufacturing capacity align with the government’s PLI scheme objectives, aiming to cater to both domestic and international markets. Other players like Adani New Industries Ltd (ANIL), Jakson Green, and Ohmium India are also making significant strides towards establishing electrolyzer manufacturing facilities and green hydrogen projects, showcasing the industry’s momentum.

Check: Best Hydrogen Stocks in India

Conclusion

India’s green hydrogen ecosystem is witnessing rapid expansion, driven by government incentives, corporate investments, and technological advancements. The successful implementation of PLI schemes, coupled with increasing collaborations between Indian and international players, underscores the sector’s potential for growth and innovation. With pilot projects underway and commercial production on the horizon, India is poised to emerge as a key player in the global green hydrogen market, contributing towards a sustainable and carbon-neutral future.

Disclaimer: This blog- has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.