ANNOUNCEMENTS
This paper explores the current Green Hydrogen (gH2) scenario in India with a proposed model that compares energy input from three different types of renewable energy sources 1. Solar power, 2. Wind and 3. Wind-Solar Hybrid. India's current Green Hydrogen Policy, which aims to produce 5 million metric tons (5 MMT) of green hydrogen, by 2030, the proposed business model will be helpful to analyze the levelized cost of gH2 (LCOH).
India’s primary energy consumption peaked to around 938 Mtoe in 2019 (OECD data). For 20-2021, the primary energy consumption is estimated to be 888.5 Mtoe. And 56 Mtoe out of 888.5 Mtoe came from Natural Gas (MoSPI, India Energy Statistics, 2022). At present, India produces around 6 million Metric Ton of H2, mostly through steam methane reforming (SMR). 2 tons of CH4 is required to produce one ton of H2 through SMR. And a ton of CH4 is equivalent to 1.33 toe of energy at standard conditions (1 atm, 60 deg. F, CH4 density = 0.717 kg/m3). Hence 6 MMT of H2 from SMR consumes around 16 Mtoe of primary energy out of 56.602 Mtoe form Natural gas (around 28%). A transition to green hydrogen will thus ease current dependency on Methane (Natural Gas) for Hydrogen production. This will not only reduce the gas import bill (of around $8 billion in 2020-21) where, 55 per cent of the country’s natural gas requirement is being met through imports. Thus, gH2 can play a crucial role in India’s energy security. There are other reasons as well to gH2 transition. Decarbonization of the economy, dropping renewable energy prices, and the maturity of gH2 technology along with a stable decline in electrolyzer price globally are pointing to increasing global demand for gH2. The proposed model shall be helpful for the stake holders and policy makers to decide upon the suitable RE source to produce gH2 at scale.
In current study, it is found out that the cost of electricity (tariff) and the efficiency of electrolyzer are the major factors for levelized cost of green hydrogen. It was clearly established that other factors like lower electrolyzer cost and higher CUF of RE plant will further lower the LCOH.
The paper also discusses the current state of gH2 market in India. Findings of a thorough research on major stakeholders like, project developers, technology and equipment providers, EPC contractors, and banks/creditors for gH2 development in India has been incorporated in the Appendix. Way forward to achieve Green Hydrogen policy targets is also discussed. Current study is in line with India’s vision and mission for energy security, climate resilience and its commitment to fight climate change. All the calculations in the study have been performed using MS Excel and most of the data has been extracted from various studies conducted by GIZ.
Keywords: Hydrogen, Green Hydrogen, electrolyzer, Levelized Cost of Hydrogen, business model.
