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India Primed to be a Green Hydrogen Powerhouse in $500 Billion Market

29 Feb 2024

India Bets Big on Green Hydrogen: Can it Become a $500 Billion Clean Energy Leader?

India is poised to become a major player in the booming green hydrogen market, a sector estimated to reach a staggering $500 billion, according to a recent report by consulting firm Alvarez & Marsal.

Why India? The report highlights India's unique advantages:

  • Abundant sunshine and wind: These renewable resources are crucial for producing green hydrogen, a clean fuel made by splitting water molecules using renewable energy.

  • Manufacturing muscle: India's strong manufacturing base positions it well to become a key player in the production of electrolyzers, the equipment needed to create green hydrogen.

  • Cost-effective edge: India's relatively low cost of capital makes it an attractive destination for companies looking to invest in green hydrogen production.

Global Green Hydrogen Landscape:

  • Renewable energy leaders take the lead: Countries blessed with abundant sun and wind, like India, Egypt, Chile, and Australia, are frontrunners in the green hydrogen race.

  • Early adopters emerge: The European Union, Japan, and South Korea are expected to be the first major consumers of green hydrogen, likely relying on imports around 2030.

Challenges and the Road Ahead:

  • Cost hurdle: Despite the promise, green hydrogen production remains expensive compared to traditional methods. Analysts emphasize the need for significant cost reductions for widespread adoption.

  • Collaboration is key: Governments, energy companies, and research institutions need to work together to drive down costs and develop the necessary infrastructure for a successful green hydrogen economy.

India's green hydrogen ambitions align perfectly with the global push for clean energy solutions. With its unique advantages and a determined focus on cost reduction, India has the potential to become a green hydrogen powerhouse in the years to come.

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