H2 Is Here

A study identifies 13 states that have the potential to foster hydrogen valleys in India

Anew study by CSTEP examines the scope for creating hydrogen valleys — an ecosystem where producers, consumers, and allied partners play a pivotal role in maximising green hydrogen penetration in India. It also identifies the likely states that will lead the effort, and quantifies key performance indicators such as water, energy, and land footprints to realise the goal.

The identified states are Rajasthan, Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, West Bengal, Assam, Haryana, Punjab, and Goa.

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These states have an estimated potential of ~7 million tonnes of green hydrogen production by 2030.

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Some of the key observations from the report are

i. Refineries and fertilisers are expected to drive the demand for hydrogen until 2030. Since a captive market is already functional, the demand for green hydrogen until 2030 will be equivalent to 25% market share while the remaining 75% will be driven by the grey hydrogen market.

ii. Green hydrogen usage will start to increase around 2025 compared to its nascent stages today. Post-2030, green hydrogen penetration will begin at scale in sectors such as freight mobility, industry (hard to abate), and city gas distribution networks.

iii. The hydrogen market is expected to demonstrate a 50:50 share by 2047 with respect to the grey and green hydrogen share. Fiscal instruments coupled with necessary policy impetus and amenable market conditions will drive this demand to new heights.