Huge potential in electrolyzer industry for India; demand expected to rise; OEMs should scale up and conduct R&D to acquire global position
Here’s an article posted in Economic Times that talks about India’s goal in electrolyzer manufacturing by 2030.
According to the article,
- India plans to manufacture 5 million tonnes of green hydrogen per annum by 2030, translating to an electrolyzer demand of 50GW–60GW.
- The global hydrogen electrolyzer market stood at US$ 350.6 Million in 2021 and is forecast to grow at a CAGR of 24.2% over the forecast period, pushing the market size to US$ 3.7 Billion by 2032.
With India setting its eyes on the goals mentioned in its mission, it is important to analyze the sectors that the country must focus on in order to achieve these goals.
Sectors for Focus:
Our specialty focus areas include
- Steel
- Fertilizers
- Refinery
- Transportation
- Power Generation
Why them?:
These sectors are critical for India’s energy and climate goals due to their high energy consumption, economic potential, strategic importance, technological advancements, and government support. Here are the reasons why:
- High Energy Consumption: These industries consume a large amount of energy, making them major contributors to greenhouse gas emissions. Decarbonizing these sectors could significantly reduce emissions.. For e.g. The steel industry is one of the largest energy consumers in India, accounting for around 10% of the country’s total energy consumption, while the fertilizer industry is another significant energy consumer, accounting for around 5% of India’s total energy consumption.
- Economic Potential: Decarbonizing these sectors can also generate substantial economic opportunities, including job creation, investments, and decreased reliance on fossil fuels. The green hydrogen sector is expected to create around 1.5 million jobs in India by 2030. Also, the Indian government has announced plans to invest around ₹1.5 lakh crore in the green hydrogen sector by 2030.
- Strategic Importance: These sectors play a critical role in India’s economic and energy security, highlighting the need to prioritize their decarbonization to meet the country’s energy and climate objectives. This is because the green hydrogen sector has the potential to contribute around 2% to India’s GDP by 2030.
- Technological Advancements: Technologies crucial for producing and using green hydrogen are rapidly advancing, rendering it an appealing choice for these industries. For e.g. Electrolyzer efficiency has improved significantly, with some systems achieving efficiencies of over 90%.
By focusing on these sectors, India can achieve significant emissions reductions, create economic opportunities, and position itself as a global leader in the production and utilization of green hydrogen.
Interestingly, we have some other posts related to this content:
Green Hydrogen in India – Plan and Projects Unveiled: India targets 115 GW green hydrogen capacity, highlighting renewable energy ambitions, while requiring 50 billion liters of demineralized water for production
