Green hydrogen production cost three times costlier than grey: Shuboday Ganta and Somesh Kumar – EY India

We got in touch with Shuboday Ganta, vice-president – Power & Utilities, EY India and Somesh Kumar, Partner and National Leader – Power & Utilities, EY India to unerstand India’s hydrogen landscape better. Edited excerpts:

Where do you see India as a green hydrogen market in the coming years? Can you share estimated capacity-wise investment figures with us?

Hydrogen is a versatile carrier of energy and when produced from renewable energy sources it is termed as ‘Green hydrogen’.

It is estimated that over ~6 million tonnes of grey hydrogen is produced annually in India using steam methane reformation powered by fossil fuels with CO2 emissions. This hydrogen is consumed as feedstock or process gas in various industrial applications including petroleum refining, ammonia production in fertiliser industry, methanol production in chemical industries, treatment and production of metals and food processing. Chlor-alkali industries also produce hydrogen as a by-product. The International Energy Agency (IEA) in its ‘Global Hydrogen Review 2021’ has estimated 90 million tonnes of global demand for hydrogen in 2020. Out of this, 45 per cent is utilised for refineries, 405 for ammonia production used in fertilisers and other chemical industries, 10 per cent for methanol production used in various chemical industries and remaining 5 per cent in the direct reduced iron (DRI) process for steelmaking. This distribution has remained almost unchanged globally since 2000 and we can assume similar range of distribution for India’s grey hydrogen demand in the present scenario.

India’s green hydrogen market is currently in the nascent stages of development. This is because the production costs of green hydrogen in the present scenario is 2-3 times expensive than grey hydrogen.

ET Energy World
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