As electric mobility gains momentum in 2023, industry observers are predicting a significant shift in 2024, with India laying the groundwork for a robust engagement with alternative fuels, particularly hydrogen.
The shift towards hydrogen is seen as a crucial step in resolving emission challenges and reducing the country’s import bill. Kabir Bogra, Partner at Khaitan & Co., emphasizes the need for industry, government, and consumer alignment to facilitate faster adoption, stating that hydrogen is expected to emerge as a viable commercial option for both passenger and commercial vehicles.
In January, the Union Government launched the National Green Hydrogen Mission with the aim of developing a production capacity of at least 5 million metric tons per annum, attracting investments of about Rs 8 trillion. Simultaneously, Tata Motors and Ashok Leyland showcased heavy-duty trucks with hydrogen internal combustion engine (H2ICE) technology at the Auto Expo.
Omega Seiki Mobility is set to launch a hydrogen-fuel cell-powered three-wheeler by mid-2024, while Tata Motors and Indian Oil Corporation unveiled India’s first green hydrogen fuel cell electric bus in September. According to BlueWeave Consulting, India’s hydrogen fuel cell vehicle market is projected to grow at a compound annual growth rate of 27.66% between 2023 and 2029, reaching a value of $347.85 million by 2029.
Fuel cell technology, although safe, is acknowledged as expensive and less efficient compared to EVs. Efforts are underway to address scalability, pricing, and the economic viability of production, transport, and storage. Importing electrolytes used in fuel cell production remains a concern, prompting efforts to produce synthetic hydrogen through carbon capture methods.
Government incentives, including the Production-Linked Incentive (PLI), are expected to boost domestic production of electrolytes, making hydrogen more economically viable. Industry leaders foresee early efforts by oil and gas players to establish the hydrogen supply chain, with technical interventions addressing long-term cost challenges.
Veer Singh, CEO of Lord’s Automotive Pvt Ltd, underscores the need for a twofold approach involving strengthening existing regulations and drafting new regulations tailored for emerging alternative fuel technologies. Expectations are high for FAME 3 to feature alternate fuel types, driving startups to create commercially viable solutions for hydrogen-powered vehicles.
