The Indian state of Assam is gearing up to harness the power of green hydrogen, as it unveils plans to establish a 25-megawatt (MW) green hydrogen plant—a move poised to mark a significant shift in the region’s energy landscape. With the global green hydrogen market projected to expand at a compound annual growth rate (CAGR) of 14.24% from 2020 to 2027, India is keen to stake its claim as a leader in this domain.
The strategic positioning of Assam in the green hydrogen race raises critical questions about feasibility, sustainability, and cost-efficiency. The state faces intricate challenges, such as balancing economic growth while transitioning to renewable energy sources. Initial calculations suggest that a shift towards green hydrogen could potentially reduce carbon emissions significantly, aligning with the Indian government’s broader environmental objectives.
However, the current cost of producing green hydrogen, ranging from $3 to $6 per kilogram, remains a stumbling block. Analysts suggest that substantial technological advancements and economies of scale are pivotal to making green hydrogen a commercially viable energy source. The International Energy Agency’s research indicates that with improved electrolyzer technology and increased capacity, costs could drop to around $1.50/kg by 2030, making the prospects of a green hydrogen economy more plausible.
The viability of Assam’s project banks heavily on establishing a robust ecosystem, including partnerships with technological and financial stakeholders who are critical to overcoming the existing economic barriers. Strategic investments in infrastructure and skill development will determine the state’s success in becoming a green hydrogen pioneer.
As Assam ventures into green hydrogen production, its progress will be closely watched by other states and countries evaluating their energy transition roadmaps. The outcomes here could serve as a template in the quest for sustainable energy solutions, where the lessons learned can be just as valuable as the success stories themselves.
