In a recent report by Alvarez & Marsal, spearheaded by Santosh Kamath, Managing Director of Energy Transition, India’s capacity to dominate the global green hydrogen market has come to the forefront.
The report, titled ‘Green Hydrogen: India’s Opportunity for a Strategic Shift in Global Energy Trade,’ lays out a strategic roadmap for India to leverage the escalating demand for green hydrogen, a sustainable alternative to conventional fossil fuels.
Hydrogen is projected to meet a significant portion of the world’s energy demand by 2050, making it pivotal in combatting climate change. With global temperatures on the rise and greenhouse gas emissions soaring, the imperative for transitioning to renewable energy sources has never been more pressing.
Currently, the bulk of hydrogen production relies on fossil fuels, resulting in CO2 emissions. However, the transition to low-carbon or green hydrogen, generated through water electrolysis using renewable electricity, offers a promising solution. Green hydrogen is poised to play a vital role in decarbonizing industries like steel, transportation, and manufacturing.
The report underscores India’s potential to emerge as a major player in the global green hydrogen market, presenting substantial opportunities for trade and economic growth. By supporting a large-scale green hydrogen program, India could secure a USD 3-5 billion annual trade opportunity by 2030, curtail natural gas import bills, and bolster GDP growth.
To harness this potential, the Indian government has initiated measures to establish a robust hydrogen ecosystem, including significant financial support programs totaling INR 19,744 crore (USD 2.3 billion). Key policy recommendations outlined in the report focus on creating domestic demand, reducing production costs, streamlining regulatory processes, and fostering long-term partnerships.
With India’s abundant renewable energy potential and strategic geographic position, the nation is poised to lead the green hydrogen revolution. By embracing this opportunity, India can not only combat climate change but also drive economic prosperity for years to come.
