Green Hydrogen Enabling Measures Roadmap

In collaboration
with Bain & Company
Green Hydrogen:
Enabling Measures Roadmap
for Adoption in India
INSIGHT REPORT
JANUARY 2024
Images: Getty Images
Contents
Foreword 3
Executive summary 4
Blueprint for the evolution of green hydrogen in India 5
The case for green hydrogen 8
1 Reduce green hydrogen production costs 10
1.1
High cost of RTC renewable energy 13
1.2
T&D charges 15
1.3
Electrolyser costs 16
2 Optimize green hydrogen delivery costs 17
2.1
High cost of green hydrogen transportation 18
2.2
High cost of green hydrogen storage 21
3 Drive domestic uptake 22
3.1
Greening existing grey hydrogen users 23
3.2
Wider adoption in industrial processes 25
3.3
Greening transportation 26
3.4
Power and heat 27
4 Capitalize on India’s export potential 28
4.1
Enable Indian exporters to thrive by creating demand for Indian 29
green hydrogen
5 Disincentivize carbon-intensive alternatives 32
Roadmap 34
Conclusion 35
Abbreviations 36
Contributors 37
Endnotes 38
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Green Hydrogen: Enabling Measures Roadmap for Adoption in India 2

January 2024 Green Hydrogen: Enabling Measures
Roadmap for Adoption in India
Foreword
Roberto Bocca
Head of Centre for Energy
Sachin Kotak
& Materials; Member of the
Partner, Bain & Company,
Executive Committee,
India
World Economic Forum,
Switzerland
Greener energy pathways are needed if India hopes A crucial element in harnessing hydrogen’s potential
to reduce its carbon emissions and achieve its net- lies in ensuring substantial renewable energy
zero goals for the future. Recently, green hydrogen production. India possesses abundant renewable
has emerged as one of the country’s most viable energy resources, especially solar. The country
clean energy alternatives. can work to develop a thriving green hydrogen
ecosystem by building this renewable energy
Green hydrogen is produced through the capacity at the right speed.
electrolysis of water. Unlike grey hydrogen
production, which typically involves the combustion To accelerate large-scale green hydrogen adoption,
of carbon, green hydrogen production creates no Indian stakeholders can also work to control the
harmful greenhouse gas (GHG) emissions. It uses operational costs, including those related to the
renewable energy sources, such as solar and wind necessary renewable energy and electrolyser
power, to supply its energy demands, making it a technology. Furthermore, they can promote
cleaner alternative at every stage of production. incentives, both to support infrastructure for green
hydrogen storage, transmission and conversion,
A novel, innovative source of clean energy, green and to encourage demand for green hydrogen.
hydrogen can be harnessed to run industrial
processes, charge municipal power grids and This report provides a comprehensive roadmap
provide clean fuel sources for various modes of for India‘s green hydrogen economy. Drawing
transport, including aviation and marine shipping. inspiration from green hydrogen efforts already
under way in the European Union, Japan and
Recognizing green hydrogen’s potential, India has China, India can adapt best practices that are
embarked on an ambitious goal to produce at least 5 ideally suited to its unique national context.
million tonnes of green hydrogen by 2030 through its
National Green Hydrogen Mission, launched in 2022. Written as a collaborative effort between the World
Economic Forum and Bain & Company, the findings
Developing a green hydrogen ecosystem over in this report are informed by extensive interactions
the next few years presents a once-in-a-lifetime with stakeholders and experts, who provided on-
opportunity for India to address its growing energy the-ground insights into the current status of India’s
needs, meet its goals for decarbonization and set burgeoning green hydrogen economy. Information
the foundation for a potential energy export market. included in this report is current as of October 2023
Widespread adoption of green hydrogen can be and may not reflect developments that occurred
encouraged through timely early-stage interventions. after that time.

Executive summary
Green hydrogen can enable energy transition as
India takes its net-zero journey towards 2070,
while supporting its growing energy needs.
India is currently the third-largest economy in the requires an ample supply of renewable energy
world in terms of energy needs, and the country’s for the electrolysis process. Fortunately, India’s
demand for energy is set to surge – demand is renewable energy potential can support its goals
estimated to grow 35% by 2030.1 In 2022, India’s for green hydrogen growth but needs rapid
energy import bill was $185 billion,2 a figure that capacity addition – additional capacity is required
is sure to rise if the country continues to supply its to generate green hydrogen as well as to meet
growing energy demand through traditional methods. the country’s electricity needs. The country’s
solar energy potential alone is estimated at 748
At the same time, India set a commitment to gigawatts (GW) at full capacity.5 Currently, total
achieve net zero by 2070 at the United Nations installed solar capacity in India sits at 70GW, or
Climate Change Conference in Glasgow (COP26), 9% of its total potential.
held in 2021. At the Glasgow summit, India’s prime
minister, Narendra Modi, said: “Today the whole However, there is limited on-the-ground traction
world believes that India is the only big economy for green hydrogen in the country, and interviews
which has delivered both in letter and spirit on the with important players indicate that most are in a
Paris commitment. We are making every effort “wait-and-watch” phase. Many expect sizeable
with determination.”3 production of green hydrogen to take effect
beginning in 2027 and after.6
Green hydrogen is critical to help meet India’s
energy security needs while reducing emissions Important constraints for the expansion of green
in hard-to-abate sectors on the path to net zero. hydrogen in India include, on the supply side,
Recognizing this, the Indian government launched the cost of production and delivery, and, on the
the National Green Hydrogen Mission in early 2022. demand side, Indian players’ readiness to consume
The aim is to spur green hydrogen production green hydrogen in traditional industrial processes.
and consumption through roughly $2.3 billion in
incentive funding, to be distributed between 2022 Supported by in-depth analysis of cost and demand
and 2030.4 drivers of green hydrogen, as well as interviews
with industry players and government agencies,
Currently, India produces 6.5 million metric tonnes this report proposes five goals that, if met, can
per annum (MMTPA) of hydrogen, predominantly for accelerate the offtake of green hydrogen in India.
use in crude-oil refineries and fertilizer production. These goals can provide impetus to the green
Most of the country’s current hydrogen supply is hydrogen demand-and-supply ecosystem by
grey hydrogen, which is produced using fossil fuels aiming to achieve the following:
in a process that creates CO2 gas emissions.
– On the supply side, a cost of $2/kg of hydrogen
The National Green Hydrogen Mission set a to reach cost-parity with grey hydrogen
target for the production of 5 MMTPA of green
hydrogen by 2030 — equivalent to roughly half of – On the demand side, enabling end industries to
India’s projected overall hydrogen demand of 11 offtake green hydrogen by creating incentives
MMTPA at that time. Green hydrogen production for its use

Blueprint for the evolution
of green hydrogen in India
Building a green hydrogen ecosystem in India
requires a targeted approach, building on the
National Green Hydrogen Mission.
FIGURE 1 Key goals and recommendations to accelerate a green hydrogen ecosystem in India
Supply
Landed cost of green hydrogen needs to be less than or equal to $2/kg (parity with grey hydrogen)
Landed cost of round-the-clock (RTC) Eliminate or reduce the cost of conversion/

1 renewable energy (RE) to be lower than
2 reconversion, transportation and storage
INR 2 (~$0.02)/kWh; support rapid
decrease in electrolyser costs
Minimize cost of Rapidly bring down Optimize conversion Reduce transportation Reduce storage
landed RTC RE electrolyser cost costs costs costs
Cost of storage: Reduce Subsidies: Increase R&D: Create incentives Pipelines: Finance R&D: Create incentives
through monetary incentives quantum for early adopters to develop R&D/pilots for creation of hydrogen to develop R&D/pilots
($50/KW insufficient) local tech pipelines in the long term for local tech (e.g. type 3
Banking accessibility: and 4 cylinders)
Make available across Capex IRR: Increase
the country and clarify duration of incentives,
norms/processes beyond five years for the
much longer capex cycle Clusters: Encourage collaboration between peers so that production and offtake takes place in
Transmission and of electrolysers clusters; this minimizes the need for enabling infrastructure
distribution charges:
Tech discovery: Allow/encourage companies to form clusters and bid for PLIs/other incentive schemes
Reduce intrastate/
wheeling charges across Encourage R&D for Benefits such as quick clearances for clusters
all states (only for select electrolyser tech suitable
few currently) for India (e.g. AEM, SOEC) Share success stories through a national platform
Demand
Demand to be enabled by supporting industries in the short term and disincentivizing carbon-intensive alternatives in the long term
3 Enable domestic demand through a staggered approach 4 Capitalize on India’s 5 Disincentivize carbon-
of supporting end-user industries export potential intensive alternatives
such as natural gas
1 Greening existing hydrogen users (refining, fertilizer)

Standards: Work with other Divert subsidies for carbon-
countries/global organizations intensive fuels to support
Increase direct subsidy ($0.50/kg is insufficient for early adopters) to develop harmonized global green hydrogen
Institute strategic demand-side mandates (balance the volume of standards (and/or the ability to
green hydrogen while factoring in economic considerations) certify green hydrogen made Enable carbon tax/ carbon
in India according to credits mechanism and use
2 Adoption across industrials (steel, cement) importers’ norms) the collections to fund energy
transition pathways
Export infrastructure: Develop
Provide CapEx support (e.g. faster depreciation, discounted land)
conversion and storage facilities
Launch standards for green hydrogen by-products (e.g. green steel) at ports
Support in energy tech migration
Export economy: Convene
3 Greening transportation (HDVs, maritime, aviation) MoUs/bilateral agreements with
potential importers to enable
export from India
Launch standards (e.g. for fuel cell)
Support R&D and pilots
4 Energy (power, cement)
Support R&D and pilots for blending with existing energy
Source: 20+ interviews with industry players and Indian government agencies; Bain & Company analysis

– Increasing direct subsidies for early adopters –
for example, the USA has announced, under the
Inflation Reduction Act (IRA), a tax credit of up
to $3/kg of hydrogen.12
Goal 1: Reduce the cost of
producing green hydrogen – Supporting long capital investment cycles for
to less than $2/kg technologies with long-term clarity on policies
and incentives
Green hydrogen today costs roughly $4–5/kg – Encouraging the development and testing of
to produce in India, approximately double the indigenous electrolyser technology
production costs for grey hydrogen.7 The majority
of production costs for green hydrogen (50–70%)
are driven by the need for round-the-clock (RTC)
renewable electricity. The remaining 30–50% are
electrolyser costs. Green hydrogen needs to come
down to a benchmark goal of $2/kg for a green
energy ecosystem to develop in India. In terms of Goal 2: Reduce or eliminate
energy production, that equates to a renewable costs related to green hydrogen
energy cost of less than or equal to INR 2
(~$0.02)/kWh.8 conversion, storage and transport
In the future, some green hydrogen production Even with low production costs, infrastructure
costs could be offset by renewable energy demands – including facility costs for conversion
incentives and tariffs. For example, the Solar Energy and reconversion, storage and transport – could
Corporation of India (SECI) – an organization under have a significant impact on the landed cost13 of
the Ministry of New and Renewable Energy that green hydrogen and its derivatives.
facilitates renewable energy capacity development
– recently achieved a cost of INR 2.6 (~$0.03)/kWh Minimizing the costs of establishing this
through standalone solar and wind tender tariffs,9 infrastructure, wherever possible, will reduce
while tenders for RTC renewable energy stand delivery costs and increase offtake. Essential
at INR 4–4.5 (~$0.05–0.06/kWh).10 Renewable interventions to achieve this are:
energy generation costs are expected to continue
to decrease as India adds more scale and as – In the short to medium term, developing
the technology continues to evolve. Additional green hydrogen production clusters where a
interventions can further reduce the cost of collaborative environment for production and
electricity storage and intra-state distribution and offtake occur in close proximity
wheeling (general distribution) charges.
– Investing in long-term infrastructure
Meanwhile, electrolyser costs can also be reduced construction, including pipelines for transporting
significantly with scale and innovation. Various green hydrogen throughout the country – for
players have reported plans for production capacity example, the European Union’s European
of 8GW,11 far below the baseline requirement of Hydrogen Backbone programme aims to
35–40GW required to meet the 5 MMTPA green develop a pipeline network in the EU14
hydrogen target by 2030. To meet that target,
stakeholders may wish to make several essential
interventions to rapidly increase electrolyser
production capacity. These include:

advantage. In the short term, they can attract a
high value (higher than domestic markets) for their
green hydrogen derivatives through exports. This
will support scale in green hydrogen infrastructure
Goal 3: Support industries that are over time.
most likely to adopt green hydrogen
Stakeholders can further capitalize on India’s export
Certain industries are better positioned than potential by:
others to embrace green hydrogen consumption.
Incentives, subsidies and other support – Creating a set of globally recognized standards
mechanisms should target likely adopters to for green hydrogen derivative export, which
increase India’s domestic demand for green could ensure the right product quality for
hydrogen. Chief among these are existing grey interested importers
hydrogen users. Stakeholders can support
domestic green energy demand among users of – Improving export infrastructure at ports,
grey hydrogen by increasing direct subsidies. This including the creation of bunkering facilities
will reduce green hydrogen costs in the short term
and encourage long-term demand for the new – Convening bilateral agreements with potential
energy source. import countries
Stakeholders can also boost demand for green

hydrogen for transportation (specifically, heavy-
duty and commercial vehicles), energy and other
industries through targeted initiatives, including:
Goal 5: Disincentivize
– Establishing long-term policy clarity to support carbon-intensive alternatives
investment cycles – for example, the EU has
set demand-side mandates until 2035 for using While incentivizing adoption of green hydrogen
green hydrogen15 is critical, the ecosystem can also be supported
by disincentivizing energy sources that are more
– Creating financial and administrative support carbon-intensive. To effectively fund a green
for research and development (R&D) and pilot transition in India, stakeholders could divert
programming subsidies on high-emission energy sources while
ensuring citizen’s basic energy needs are met.
– Publishing clear standards and providing Doing so will make the relative economics of green
targeted, measurable direction for future R&D energies more viable. Specifically, local, regional
programmes (such as those involved in green and national governments in India might consider
hydrogen derivative use) diverting their current spending on fossil-fuel
subsidies to new projects that support green
hydrogen production and infrastructure-building,
while ensuring energy affordability does not change
materially for the domestic population (for example,
Europe has included green hydrogen under the
Goal 4: Capitalize on India’s Emissions Trading System).16 Further, governments
export potential for green can consider a comprehensive carbon-tax regime
hydrogen derivatives with the intention of using assessed funds to
support green energy transition.
Global variance in landed green hydrogen costs If met, these goals can help develop and mature
provides an emerging opportunity for international India’s green hydrogen ecosystem and facilitate
trade in green hydrogen derivatives in a (currently) green hydrogen’s role in helping the country meet
non-regulated trade market. In this climate, India its decarbonization targets.
has the potential to become a green hydrogen
derivative export hub. It has relatively low-cost The following sections take a more detailed look
renewable energy, a skilled workforce and at the specific challenges affecting each goal and
abundant land for renewable energy expansion. recommend strategies to overcome them.
Indian exporters should capitalize on this natural

The case for
green hydrogen
Tension between Energy is fundamental to human well-being. But Given its versatility, green hydrogen is critical
energy supply the largest energy sources, fossil fuels, are also the to address energy access and energy security
and climate largest sources of human greenhouse gas (GHG) needs, particularly in a nation dependent on
change presents emissions, which cause global warming. Warming energy imports, such as India, while at the same
a global problem presents risks over time, such as rising sea levels time helping the world achieve its decarbonization
and an increase in the frequency and intensity targets. Consequently, the green hydrogen
of enormous scale
of extreme weather. Solely addressing climate economy has seen a significant impetus in the past
and complexity.
considerations could jeopardize access to reliable, two to five years, driven by governmental initiatives.
Green hydrogen affordable energy in the developed and developing For example, the US government has announced
can help address world. Conversely, addressing access to energy several incentives to accelerate the switch to clean
this tension. without considering the impact on the climate will energy projects, including green hydrogen:
worsen the adverse effects of human-induced
climate change in the future. This tension between – In 2023 a $7 billion grant was awarded to seven
energy supply and climate change presents a global regional clean hydrogen hubs to accelerate
problem of enormous scale and complexity. deployment of green hydrogen in the country
Hydrogen produced through the electrolysis of – The 2022 Inflation Reduction Act (IRA) includes
water, powered by renewable energy – green a climate package that provides around $369
hydrogen – is a clean, flexible and versatile billion in incentives to reduce the cost of clean
energy carrier that can help address this energy projects
tension. Its properties (chemical reactiveness,
heat replacement, energy storage, conversion – In 2021 the Department of Energy introduced
to electricity) make it suitable for a range of the Bipartisan Infrastructure Law, including $9.5
applications. Some of these are: billion in clean hydrogen initiatives
– Industrial feedstock: chemical feedstock in – In 2020 the Department of Energy established

industrial processes in oil refineries, ammonia the Hydrogen Program Plan, a strategic
and methanol production, direct reduction of iron framework that incorporates research,
in steel and as input in other general industries development and demonstration efforts to
advance the production, transport, storage
– Transport: to power fuel cells in long-distance and use of hydrogen in different sectors of
and heavy transport (for example, heavy-duty the economy
vehicles, buses)
India, too, under the National Green Hydrogen
– Power and heat: hydrogen’s long-term potential Mission 2022, has set up incentives worth
as a source of industrial energy for heat $2.3 billion.
generation for industries in need of medium-to-
high heat (>250–300°C)

FIGURE 2 Key provisions in the National Green Hydrogen Mission
Overview of National Green Hydrogen Mission
– Clearly articulated targets for production of 5 MMTPA of green hydrogen by 2030

– $2.3 billion planned outlay as part of National Green Hydrogen Mission, of which $2.1 billion
is committed to SIGHT programme for incentivizing green hydrogen production
SIGHT programme ($2.1 billion) Other initiatives ($0.2 billion)
Direct green hydrogen incentive Electrolyser production-linked incentive $0.15 billion outlay on pilot projects
($1.6 billion) ($0.5 billion) $0.05 billion committed for R&D
Direct production incentive up to $0.5/kg Base incentive at $54/kW in Year 1 to

hydrogen for three-year period taper to $18/kW by Year 5
Scheme deployment period: financial Scheme deployment: financial years
years 2026–2030 2026–2030
Enabling measures
Cost reduction Export infrastructure Other incentives

25-year waiver on renewable energy Port authorities to provide land for storage Renewable energy consumed for green
interstate transmission charges bunker set-up hydrogen production included in RPO
compliance of consumer
Note: Strategic interventions for Green Hydrogen Transition (SIGHT) programme under the National Green Hydrogen Mission; RPO: renewable purchase
obligation (RPO) is the requirement mandated by central/state regulatory commission
Source: NITI Aayog; RMI analysis; Bain & Company analysis; Indian government websites (e.g. Government of India, Ministry of Petroleum and Natural
Gas – MoPNG); literature search
Using green hydrogen to meet half the country’s is used in new use cases. Thus, green hydrogen
hydrogen demand by 2030 alone can abate at provides a credible pathway for India to achieve
least 50 MMTPA of greenhouse gases,17 while its decarbonization goals, while addressing energy
reducing dependence on energy imports.18 The access and security requirements.
abatement could be even higher if green hydrogen

Goal 1 Reduce green hydrogen
production costs
Reducing renewable energy and
electrolyser costs can help make green
hydrogen production cost-effective.

Green hydrogen currently costs about $4–5/kg to – Electrolyser costs, which constitute 30–50% of
produce in India. That is at least twice as much as total green hydrogen production costs
the cost of producing grey hydrogen. The Indian
government currently provides subsidies of up to In India, the lowest discovered price for landed
$0.50/kg to help offset the higher cost of green RTC renewable energy is at least INR 4–4.5
hydrogen19 (additional subsidy of $54/kW also (~$0.05–0.06)/kWh. The price can go much higher,
provided for manufacturing electrolyser). In spite though, depending on the operating parameters of
of the subsidy, however, high production costs the renewable energy power plant, such as storage
are limiting green hydrogen’s adoption potential in technology, location, etc.
India. To achieve effective scale and widespread
adoption, green hydrogen needs to reach a net Essentially, renewable energy costs are driven by
price of $2/kg or lower. three main factors: generation, transmission and
distribution (T&D) and storage.
Green hydrogen production costs are expected
to decline naturally as adoption increases, thanks
to both economies of scale and efficiencies Generation costs
gained from technological improvements. Until
the benchmark price target of $2/kg is achieved,
however, policy support will be essential to Generation accounts for roughly 40% of total
encourage adoption. renewable energy costs and is the largest single
driver of expense when considering green energy
Currently, two main drivers dictate green hydrogen alternatives.20 India already enjoys an average
production costs: renewable energy cost that is below several other
leading international producers, including Germany,
– Landed RTC renewable energy electricity costs, the USA and Australia (Figure 3). As it works
which account for approximately 50–70% of towards its bold 2030 target, India’s renewable
green hydrogen costs energy production costs are likely to fall even lower.
FIGURE 3 Average renewable energy costs for leading international producers
India is relatively cost-competitive globally in renewable energy

$50–70
Global renewable energy rates ($/MWh)
$30–50 $30–50
$20–40 $30–40
$15–25
KSA China India Australia USA Germany
Note: Benchmarks indicate average renewable energy costs across countries as per various interviews with industry experts.
Source: International Energy Agency, India Energy Outlook 2021; expert interviews

Over the past decade, India’s renewable energy as batteries and pumped hydro can alleviate these
generation costs have declined significantly. For intermittency issues and enable green hydrogen
example, in 2010, it cost roughly INR 11 (~$0.1)/ production. However, these facilities are not
kWh to produce electricity from solar energy in currently operating at scale, and their costs are
the country. As of 2023 that price has fallen to not optimal. Interventions are needed to increase
INR 2.6 (~$0.03)/kWh. This marked decrease can capacity and reduce costs.
be credited to multiple interventions, such as a
demand-side mandate in the form of renewable
power obligations (RPOs) and advances towards Transmission and
a nationalized, connected energy grid.21 To bring
these costs down to the target of INR 2 (~$0.02)/
distribution costs
kWh, stakeholders might consider interventions to
reduce the capital costs associated with setting up Transmission and distribution demands account
renewable energy plants. Capital expenditure costs for the final 20–30% of renewable energy costs.
account for at least 90% of wind and solar energy Renewable energy-rich states in India are often
generation costs currently.22 Interventions that can located far away from industries. For example, in
effectively reduce capital costs include direct capital northern India, Rajasthan has the highest installed
cost subsidies, goods and services tax (GST) capacity of solar power, but it is relatively distant
waivers, reduced land fees and stamp duty waivers, from important manufacturing centres such as the
among others. For example, GST exemptions on Mumbai–Pune industrial hub.
solar panels (currently taxed at 12%) can reduce the
cost of electricity generation by 10%. Transmitting power is easier and more cost-effective
than transporting hydrogen over long distances.
Thus, most hydrogen plants are being planned near
Storage costs offtake locations, such as refineries and steel plants.
To power them, industry leaders are transmitting
renewable energy from other parts of the country.
Storage accounts for roughly 30–40% of total As a result, the transmission and distribution costs
RTC renewable energy costs. In India, best-in- associated with renewable energy can add up to as
class renewable energy plant load factors are much as 60% of the generation costs. These costs
40%. Production of energy through renewable also vary widely. They are determined by factors such
sources is intermittent and varies due to weather as the frequency of transmission loss, the cost of
conditions, topography of the location and many using state grids and fixed fees from state distribution
other factors. Green hydrogen production requires companies. Interventions are needed to reduce and
a steady source of energy – storage systems such streamline these costs throughout the country.

1.1
High cost of RTC renewable energy
Due to the intermittent nature of renewable energy, and drive up the cost of RTC renewable energy,
green hydrogen production plants need energy as is evident from costs discovered in the most
storage systems (ESS) to ensure a stable power recently launched national tenders, including ESS
supply for their operations. Existing ESS are costly (Figure 4).
FIGURE 4 RE + ESS costs of various energy tenders
Parameters SJVN SECI Peak Power-1 SECI Peak Power-2 RUVNL Peak Power 2
Project capacity 1,500 MW 1,200 MW 1,200 MW 1,200 MW
Technology mix RE + ESS RE + ESS RE + ESS Solar + ESS
Lowest tariff 4.38 6.12/4.04 4.64 6.68

discovered
(INR/kWh)
Present status Bidding complete PSA signed Awarded Awarded

(as of November
2023)
Notes: PSA = power sale agreement; the two prices are peak and average – for example, for SECI Peak Power-1 contract, peak hourly tariff was INR 6.12/kWh,
while off-peak was INR 2.88/kWh. The average tariff was INR 4.04/kWh.
Sources: Public filings of government agencies, including NTPC, formerly known as National Thermal Power Corporation; SECI, Solar Energy Corporation of India;
SJVN, formerly known as Satluj Jal Vidyut Nigam; MSEDCL, Maharashtra State Energy Distribution Company Limited; GUVNL, Gujarat Urja Vikas Nikat Limited
Enabling measure: reduce thermal plant use in the day, which reduces
GHG emissions. The grid then supplies thermal
Reduce the cost of energy power at night in exchange for the renewable power
storage systems rapidly supplied to the grid during the day.
To address this added expense, stakeholders could Banking does not incur additional capital costs.
invest in incentives to reduce the cost to build States such as Maharashtra and Gujarat, which
and use ESS throughout the country. This can be receive surplus solar and wind energy, have
achieved with interventions that target the three developed systems for banking renewable
most widely used storage technologies: 1) banking; energy.23 However, these facilities are not available
2) battery energy storage systems (BESS); and 3) throughout the country. “While banking facilities
pumped storage hydropower (PSH). are provided in policy, there is lack of clarity on
the mechanism of banking about cost, physical
infrastructure and capacity,” a leading steel
Banking manufacturing executive said. To make banking
available in every state throughout the country,
greater clarity on the banking process is needed,
“Banking” allows a renewable energy source to including precise details on facility and ownership
bank, or store, surplus power with the grid during costs, banking capacity, award mechanisms and
the day and withdraw power from the grid at night the processes for renewable energy certification,
at no additional cost. This process enables grids to among other issues.24

Battery energy storage system Pumped storage hydropower
(BESS) (PSH)
India projected its BESS capacity to be roughly 42 India’s on-river pumped storage potential is
GW by 2030. This implies approximately 6 GW of estimated to be 103 GW, while the off-river potential
yearly BESS capacity deployment over the next is still being estimated. As of April 2023, however,
seven years.25 While the cost of standalone lithium- only 4.7 GW was in operation.30 Clearly, pumped
ion battery packs globally fell from $1,220/kWh in storage hydropower (PSH) is ripe for further
2010 to $151/kWh in 2022, the costs are still too development.
high for utility-scale adoption.26
Current estimates predict India will require 18.9 GW
The government recently approved INR 3,760 crore of pumped hydro-produced electricity in its energy
(~$450 million) in funding to cover up to 40% of mix by 2029–2030.31 The government has issued
capital costs incurred in building BESS, with the guidelines for developing pumped hydro,32 including
target of achieving battery costs of INR 5.5–6.6 budgetary support that includes cost credit (INR 1.5
(~$0.07–0.08)/kWh.27 Additional interventions can crore [~$180,000]/MW up to 200 MW and up to
be considered to reduce the battery cost to the INR 1 crore [~$120,000]/MW above 200 MW).33
target price of INR 2 (~$0.02)/kWh for viable green
hydrogen production. An important challenge in scaling PSH is increasing
its attractiveness for industry players. To achieve
Indirect cost subsidies in the form of GST and this, stakeholders could consider removing
custom-duty exemptions28 can be effective in cumbersome clearance processes that have
lowering BESS operational costs. For example, deterred private-sector contributions. Some
as part of its 2023 Union Budget, India exempted suggested measures are:
custom duties on imported lithium-ion batteries for
use in electric vehicles, effectively reducing their – Encouraging private players to participate
cost by as much as 20%.29 Similar exemptions can by expediting environmental clearances and
be considered on the import of BESS components defining delivery timelines that encourage private
used to provide RTC renewable energy for green investment. For example, drawn-out clearance
hydrogen production. processes have delayed timelines and restricted
private-sector contributions to only about 8% of
the total installed hydro capacity today.34
– Environmental stipulations and other land

acquisition hurdles can make PSH development
difficult. Industry players may want to prioritize
nationwide surveys to search for sites that could
be appropriate for PSH development while
meeting environmental and social stipulations.

1.2
T&D charges
When energy is transmitted from a production 50% concession on transmission charges and a
facility to an end user, it is subject to T&D charges, 60% concession on wheeling charges for green
including interstate transmission charges, intra-state hydrogen projects over the next 10 years.37
transmission charges and wheeling charges. These These measures bring the effective T&D costs
typically account for 30–60% of energy generation down from INR 1.5 (~$0.02)/kWh to INR 0.4
tariffs and drive the total landed cost for renewable (~$0.005)/kWh in states such as Maharashtra
energy to INR 4 (~$0.05)/kWh or more. (assuming a full waiver on interstate charges
and a 50% exemption on intra-state charges).
To ease the burden of transmission fees, India’s
central government has offered waivers. These However, variance leads to particularly high costs
include a 25-year waiver of renewable energy in states where policies do not exist. Further,
interstate transmission charges for green hydrogen the variability of policies among states leads to
projects commissioned on or before 31 December uncertainty for players as they look to transmit
2030.35 Additionally, India’s “Green Energy Open electricity to other parts of the country, where they
Access” plan allows generating companies to sell have or plan to develop green hydrogen plants.
electricity directly to consumers cross-country
through independent mutual agreements. These
initiatives have successfully alleviated issues such Enabling measure: Establish
as power evacuation and infrastructure constraints
related to T&D charges. As such, they have enabled
consistency in state T&D charges
wider green energy adoption throughout the country.
To effectively reduce energy T&D costs and provide
In addition to interstate charges, additional intra- parity among states, industry players could work
state, distribution and wheeling charges are also towards greater consistency in intra-state T&D
incurred, which are dictated by state government changes by creating:
policies and so vary between states. For example,
recent open-access wheeling charges for a 11 kV – Waivers for all state-driven T&D charges for green
supply in the state of Gujarat were set at INR 0.18 hydrogen projects, especially for early adopters
(~$0.002)/kWh, while in the state of Uttar Pradesh
the same charges reached INR 0.94 (~$0.01)/kWh.36 – Extending all such waivers long term (at least five
or more years) to facilitate measurable progress
Some state governments, including the towards developing green hydrogen plants
government of Maharashtra, have allowed a

1.3
Electrolyser costs
An electrolyser uses electricity to split water into In addition to cost-reduction strategies, scaling
hydrogen and oxygen. Electrolyser costs account of the correct technology is critical. Multiple
for approximately 30–50% of total green hydrogen technologies exist for electrolysers today, each with
production costs in India. As with any new different specifications and use cases.
technology, the price of electrolysers is expected
to decrease as scale improves and production
processes evolve. Enabling measure: Leverage R&D
A significant decrease in costs has been observed
to support electrolyser technologies
historically in other climate technologies. For that are attuned to India’s needs
example, as production capacity doubled, the cost
of a lithium battery (LiB) pack declined by 44%, Alkaline (ALK) electrolysers are the most cost-
photovoltaic (PV) module costs declined by ~34%, effective.41 However, ALK electrolysers are primarily
and the average wind levelized cost of electricity used for hydrogen production through grid-supplied
(LCOE) reduced by ~23%. electricity, as they are inefficient with intermittent
power sources such as renewable energy power.
Electrolyser costs will probably follow the same
downward trajectory as the green hydrogen industry While expensive,42 proton exchange membrane
grows globally. To accelerate this cost decline, (PEM) electrolysers have better operational flexibility
stakeholders can make targeted interventions to and reaction efficiency. They are also able to
reduce the costs to acquire and use electrolysers achieve the required purity for hydrogen for use in
for energy production. a fuel cell, unlike ALK. However, these electrolysers
consist of rare-earth metals such as platinum and
iridium,43 which need to be imported into India.
Enabling measure: Award
Stakeholders can spur innovation in Indian
subsidies to early adopters electrolyser production and electrolysis capacity by
making interventions such as:
The Indian government provides a subsidy of $54/
kW during the first year of electrolyser production – Prioritizing the development of electrolyser
through a production-linked incentive (PLI) scheme.38 technologies that operate on a flexible
Tranche 1 was live between July and October energy supply and without reliance on rare-
2023.39 This subsidy reduces the cost of green earth metals. Examples include anion exchange
hydrogen production by only $0.1/kg.40 Additional membranes (AEM) or solid oxide electrolyser
interventions, including increasing subsidy support cells (SOEC). Given the evolving nature of the
through the PLI scheme, would further reduce the industry, it is also critical to monitor the right
cost of electrolysers and, thus, green hydrogen. technologies continuously. Stakeholders could
Such steps would encourage early development of a consider increasing central government’s R&D
critical mass of electrolysis capacity. budget for indigenous technology to further
innovation using these types of electrolysers.
Also, government and industry players could
Enabling measure: Implement build partnerships with international agencies
working in the green hydrogen sector to import
long-term policy views to reduce technology and establish mutually beneficial
the risks to capital investment operations within India.
India’s current electrolyser PLI scheme has a five- – Facilitating collaboration between private
year deployment period (financial years 2026– players and academic research institutes
2030). However, typical electrolyser manufacturing on test and pilot programmes. Often
units have a much longer life cycle. Therefore, industry players are unaware of technology
It is necessary stakeholders could adopt at least a 10-year view developments that occur in different parts of
on electrolyser capital cost-related incentives to the country. Recently, companies in Pune
to adopt at least
encourage private investments in this technology. formed the Pune Hydrogen Consortium to
a 10-year view
Such initiatives could help adopters feel less share knowledge throughout the industry
on electrolyser apprehensive about the capital costs. “Given the and academia. Similar initiatives at a
capital cost-related technology is still evolving, electrolyser capital countrywide level could benefit industry players,
incentives to investment will only make economic sense after five while building a more cohesive, national
encourage private years. We will likely make that investment decision understanding of this new sector.
investments in this in the future, instead of now,” a leading energy
technology. producer said.

Goal 2 Optimize green hydrogen
delivery costs
Infrastructure development and clustering
initiatives can reduce the costs associated
with green hydrogen delivery.

Hydrogen is a volatile, small-molecule chemical with needed to convert hydrogen into a derivative at
a low volumetric energy density, requiring dedicated the point of production and then back to hydrogen
(or adjusted) infrastructure for storage and at the point of consumption, especially for long-
transportation, which is expensive, especially when distance transportation, such as when exporting it.
the scale is low. Thus, in addition to production
costs, the long-term costs of building transport and Given the nascency of India’s hydrogen
storage infrastructure for this technology should ecosystem, the country currently lacks the
also be considered. technology and the infrastructure for adequate
transportation. These logistical gaps are hindering
From a logistics standpoint, hydrogen-enabling the country’s access to green hydrogen and
infrastructure connects the sources of production impeding widespread adoption. Stakeholders
with places of offtake (that is, where it will be used). can establish incentives for the development of
It supports several stages in the green hydrogen infrastructure as well as scaled green hydrogen
life cycle, including transportation, conversion (or technology to address these issues.
reconversion) and storage.
Storage
Transportation and conversion/
reconversion Given hydrogen’s volatility, its storage is also
challenging and potentially hazardous if not done
Transporting hydrogen in its gaseous state is very correctly. Interventions to identify novel ways to
expensive (given that it requires a pipeline network store hydrogen and develop enabling infrastructure
to be built) compared to some of its derivatives can spur the development of storage infrastructure.
such as ammonia or e-methanol. Infrastructure is
2.1
High cost of green hydrogen transportation
Currently, hydrogen is transported using three Three types of pipeline can be used for this
main methods: purpose. The first, dedicated hydrogen pipelines,
are specialized pipelines made with materials
1. Shipping of hydrogen or its derivatives over long designed for hydrogen dissemination. (Hydrogen
distances (cross-continent) can cause steel and other standard pipeline
materials to become brittle.) Using the second type,
2. Transporting of gaseous or liquefied hydrogen converted natural gas pipelines, involves making
(or its derivates) using trailers slight modifications to existing pipelines to enable
them to carry a blend of natural gas and hydrogen.
3. Transporting of gaseous hydrogen through The third method involves blending small amounts
pipelines of green hydrogen (limited to 5–10%) with natural
gas, using existing natural gas pipelines.
When the volumes are substantial and the distances
are relatively small, a pipeline is an effective way to
transport hydrogen.

Enabling measure: Scale upfront capital investment as well as a prolonged
construction timeline. In the short term, therefore,
transportation and conversion/ officials can encourage the use of modified existing
reconversion infrastructure natural gas pipelines for hydrogen dissemination or
blending of green hydrogen with natural gas. In the
Because India’s green hydrogen industry is still long term, India can look to Europe’s example of
evolving, a dedicated nationwide interconnected laying down a dedicated hydrogen transport network
hydrogen pipeline network does not currently using its pre-existing gas network as a foundation
exist. Building such a network will require massive (the European Hydrogen Backbone project).
FIGURE 5 Case study: EU repurposes natural gas pipelines as part of the European Hydrogen
Backbone programme
Situation Anticipated large-scale hydrogen consumption in EU (40 GW)

will require a well-developed hydrogen transportation infrastructure
Vision Connecting hydrogen supply and demand across the region, labelled “the European Hydrogen Backbone”
– Also connected to wind and solar-photovoltaic supply as well as hydrogen imports from outside EU
Description Dedicated hydrogen pipeline across Europe, mainly created by converting existing pipelines
and – Initial 6,800 km pipeline network by 2030 (initiated by early 2020s)
anticipated
progress – Expand to 23,000 km by 2040 (Phases 2 & 3)
Estimated cost: €27–64 (~$29–69) billion (2020–2040)
Countries
involved
Source: European Hydrogen Backbone, 2020
In order to explore other mediums of transporting establish green hydrogen clusters. For example,
hydrogen – such as ammonia – appropriate Adani Enterprises is setting up a cluster at
technology and scale related to conversion/ Khavda with 20 GW+ renewable energy and
reconversion facilities are needed. green hydrogen production. Consumption there
is driven by the nearby Mundra industrial hub.46
Until the required scale is achieved, uptake should
be encouraged in one of two ways: The creation of clusters for both hydrogen
production and offtake can significantly reduce the
– Engage in captive production: Many early cost of infrastructure for transportation and storage.
adopters are planning to set up captive green The formation of clusters can be encouraged by:
hydrogen plants to eliminate the cost of
transport and storage. For example, Indian – Allowing companies to bid for PLI/other
Oil has plans to set up a commercial-scale incentive schemes as part of a cluster
green hydrogen plant at its Panipat refinery,44
and HPCL is setting up a 370 tonne-per- – Enabling faster clearances for clusters
annum (TPA) green hydrogen plant at the compared to single entities
Vishakhapatnam refinery in Andhra Pradesh.45
– Sharing success stories of clusters on national
– Consume within a closely held cluster: platforms to encourage collaboration
Alternatively, some adopters have plans to

FIGURE 6 Global examples of hydrogen cluster projects
Project Country Production Description Electrolyser

name start year size/KTPA
Supply-led cluster
H2opZee 2030 Neptune Energy and RWE are collaborating to develop the 500
Hydrogen Project H2opZee offshore green hydrogen project, which aims to build (71* KTPA)
Netherlands 300–500 MW of electrolyser capacity in the North Sea
Enterprize Energy 2030 Enterprize Energy and the Vietnamese Institute of Energy are 2,318*
Thang Long collaborating to develop the 3.4 GW Thang Long offshore wind farm (330 KTPA)
Hydrogen Project Viet Nam to produce more than 330,000 tonnes of green hydrogen in Viet Nam
Hydrogen City, 2026 Green Hydrogen International (GHI) plans to develop an integrated 2,000
Texas Hub (Phase 1) green hydrogen production, storage and transport hub growing to (285* KTPA)
US 60 GW renewable capacity (solar and wind power) in Texas
HyDeal 2030 HyDeal España is the first industrial implementation of the HyDeal 7,400
ambition platform, which aims to achieve electrolyser capacity of 67 (330 KTPA)
Integrated hub
España GW and 3.6 million tonnes of green hydrogen production by 2030

Spain
HyNet North West 2025 HyNet plans to provide infrastructure to produce, store and transport –
(Phase 1) low-carbon hydrogen across North-West UK and North Wales. This
United also includes infrastructure to capture, transport and lock away
carbon dioxide emissions from industry. This cluster consists of ~40
Kingdom organizations and is expected to deliver up to 80% of the UK’s 5GW
low-carbon hydrogen target by 2030.
National Capital 2030 National Capital Hydrogen Centre plans to produce, store and –
Hydrogen Centre transport low-carbon hydrogen in the DMV region (District of
Columbia, Maryland and Virginia) abating ~1.5% of regional carbon
US emissions in less than a decade.
Source: GlobalData; literature search Notes: *Calculated using a fixed conversion factor; KTPA = kilotonnes per annum.

2.2
High cost of green hydrogen storage
Effective hydrogen transport can occur only when hydrogen storage also plays a role in potential
systems for hydrogen storage – both before and use cases, including for grid balancing and power
after transportation – are in place. Thus, a viable generation, the demand for effective storage
storage infrastructure is critical for the green facilities becomes even more critical.
hydrogen industry to thrive. Given the fact that
FIGURE 7 Global hydrogen storage capacity
Solid
Gaseous state Liquid state
state
Regions
Salt caverns Depleted Rock Pressurized Liquid Ammonia LOHC Metal
gas fields caverns containers hydrogen hydrides
Large Medium Small– Large Large Small

Main usage Large Small
volumes, volumes, medium volumes, volumes, volumes,
(volume and volumes, volumes,
months– months– volumes, months– months– days–
cycling) seasonal daily
weeks weeks days–weeks weeks weeks weeks
300–10,000 300–2,500 0.18–4,500

Working 300–100,000 5–1,100 kg/ 0.2–200 1–10,000
tonnes/ tonnes/ tonnes per 0.1–20 kg
capacity tonnes/field container tonnes tonnes
cavern cavern tank
Benchmark Not
$0.23 $1.90 $0.71 $0.19 $4.57 $2.83 $4.50
LCOS ($/kg H2) evaluated
Possible future Not

$0.11 $1.07 $0.23 $0.17 $0.95 $0.87 $1.86
LCOS evaluated
Geographical
Limited Limited Limited Not limited Not limited Not limited Not limited Not limited
availability
Source: Bloomberg New Energy Finance Notes: LCOS = levelized cost of storage; LOHC = liquid organic hydrogen carriers.
Enabling measure: Build currently available in India, albeit only for short-
term/low-volume storage. There are four types
technology and infrastructure of cylinders for storing gases, made according to
for green hydrogen storage a specific standard and process. Type 3 and 4
composite cylinders are better suited for hydrogen
Storing hydrogen in its liquid state is very expensive storage than types 1 or 2, due to the former’s ability
and energy intensive, while storage in its solid to withstand very high pressures. But type 3 and
state is yet to be adopted. Consequently, storing 4 cylinders are currently still in development and
hydrogen in its gaseous state is currently the most very expensive for industrial use. Presently, Indian
cost-effective medium. Oil is working with IIT Kharagpur to develop a type
3 composite cylinder for use with compressed
For large-volume gaseous hydrogen storage, salt hydrogen gas.48
caverns, depleted gas fields and rock caverns
are needed, and this can happen only at naturally Developing type 4 cylinder technology will follow type
occurring geological sites. India is still at the 3 cylinder adoption. In the short term, stakeholders
feasibility-study stage when it comes to large- could encourage the development of type 3 cylinders
scale underground storage. An exploratory study to reduce hydrogen storage costs. This could
is currently under way at a site in Bikaner,47 and the be done by setting up testing facilities for type 3
India Hydrogen Alliance (IH2A) is also conducting composite cylinders as per International Organization
R&D on salt cavern-based hydrogen storage. for Standardization (ISO) standards and by offering
incentives for R&D on other innovative, commercial-
Storing gaseous hydrogen in pressurized containers scale storage technologies. Until credible
(sometimes called cylinders) – since it does not rely technologies for storage are widespread in India,
on naturally occurring geological sites – represents creating hydrogen clusters should be prioritized to
the most easily controllable storage technology reduce or eliminate the need for hydrogen storage.

Goal 3 Drive domestic uptake
Creating pull for green hydrogen through
demand-side interventions within India’s
borders will boost its development.

In addition to supply-side interventions, the existing grey hydrogen users, transportation
demand side can also encourage industries to providers, power suppliers and other major
consume green hydrogen rather than fossil-fuel- industries (Figure 8). Interventions can be tailored
based energy sources. for each category to support widespread green
hydrogen adoption.
Four important categories of users will likely drive
the adoption of green hydrogen throughout India:
FIGURE 8 Key sectors driving green hydrogen adoption in India
Category
Greening Wider adoption Greening Power

existing grey across industrial transportation and heat
hydrogen users processes
Industry
examples
Refinery, Steel, cement, Heavy-duty Power, grid

fertilizer chemicals vehicles, maritime, balancing
aviation
Source: Bain & Company analysis
3.1
Greening existing grey hydrogen users
Refineries and fertilizers are the two biggest Enabling measure: Reduce the
consumers of grey hydrogen in India. Together
they make up more than 90% of the country’s total
cost/drive uptake of green hydrogen
hydrogen demand.49 In refineries, hydrogen is used for existing grey hydrogen users
for the desulphurization of petrol and diesel. The
fertilizer industry, meanwhile, uses hydrogen to Encouraging green hydrogen adoption among
produce fertilizers such as urea. Currently, on-the- existing grey hydrogen users in India will require
ground traction for green hydrogen implementation both cost interventions on the supply side and
is limited in both sectors. mandates on the demand side.
To date, only a few players have clear targets for On the supply side, these industries can benefit
integrating green hydrogen into their refineries or from increased subsidies that accelerate uptake
fertilizer production operations. A prominent example in consumption. This can be done by increasing
is Indian Oil, which has expressed plans to use the amount of direct cost incentives – in the form
green hydrogen for 50% of its total hydrogen used of tax credits or fixed subsidies, for example –
by 2030.50 While these sectors could easily adopt to compensate for the green hydrogen cost
green hydrogen into their operational processes, their premium. India could follow a model set by the
transition is limited by cost barriers. Green hydrogen USA, where tax credits of up to $3/kg are available
costs roughly $4–5/kg, while grey hydrogen costs for green hydrogen production under the Inflation
less than $2/kg today. The significant price differential Reduction Act.51
is, for now, a critical obstacle to widespread adoption.

On the demand side, green energy uptake can be product costs. For example, mandates can be set
influenced by consumption-based interventions. that require refiners and fertilizer manufacturers to
One leading energy producer said: “Supply-side blend small quantities (5–20%) of green hydrogen
interventions, while helpful, are not enough without into their fuel. Use of green hydrogen at such levels
certain demand-side mandates. Adoption of green may not materially change the cost of the end-
hydrogen in the short term may not be viable unless product, but it could nonetheless provide early
there is demand from customers.” Of course, the impetus for more widespread adoption.
potential cost impact for customers should be
factored in when setting these mandates. To illustrate, historically, renewable energy has
achieved scale through demand-side policy
In the short term, stakeholders could encourage interventions in the form of renewable energy
the use of blended hydrogen, which combines purchase obligations. Since their launch in 2011,
both green and grey hydrogen, by setting demand purchase obligations have led to massive capacity
mandates that have a minimal impact on final addition and price correction (Figure 9).
FIGURE 9 Demand-side policy interventions outweighed supply-side interventions for

successful scale-up in solar renewable energy production
Average solar winning tariff at auction* Solar capacity (GW)
12 80
11.0 63
9 7.5 7.5 50 60
5.5 6.1 39
35
6 4.5 4.3 40
27
18 2.8
3 2.2 2.2 2.2 20
10
4 6 2.7 2.7
0 1 1 2
0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
RE RPO increased CPSU scheme to Tariff policy IST charges RE RPO re-revised
from 0.25% to 3% incentivize CPSUs amendment 2016, waived off for all from ~21% to ~43%
RE (target by 2022) to install solar requires SERC to RE projects (until (target by FY30)
power under the reserve solar energy December 2025) (DISCOMs, and
VGF mechanism ~8% of total energy captive power prod.)
Renewable
energycertificates consumption by RE
awarded to incentivize PV mfg allowed to
Demand
utilityproviders/states/ list components

private players exempt from duty
Renewable Regulatory Fund RE RPO revised from

established to compensate 3% to ~21% by FY22 PLI boosted domestic value
Policy interventions
states for unscheduled (DISCOMs, captive chain ~$3.2B on ~40 GW

intermittency costs power produced) solar PV mfg capacity
National Solar Mission launched Safeguard duty (SGD) $40 billion outlay BCD of 25% on
Aiming for 100 GW solar PV imposed on import of to improve solar cells and
Supply
installations by 2022 solar cells (2018) DISCOMs infra 40% on modules
Net zero by 2070;

RE target capacity
~500 GW
Notes: RPO = renewable purchase obligation, launched in 2003; VGF = viability gap funding; SERC = state electricity regulatory commissions; IST = interstate
transmission charges; BCD = basic customs duty; CPSU = central public sector undertaking; RPO = renewable purchase obligation; DISCOMs infra = distribution
company infrastructure; PV mfg = photovoltaic cell manufacturing; * = average of winning tariff across energy bidders each year.
Source: Literature search; Bain & Company analysis

3.2
Wider adoption in industrial processes
Adoption of green hydrogen by industries other Similarly, for other industrial sectors, such
than those already using hydrogen for fertilizer as cement, chemical production and mining,
production and in oil refineries represents its own, large-scale capital investments for equipment
separate challenge. Adoption in wider industrial replacement and process adaption will be required.
sectors will probably require significant process
adaptation or machinery retrofitting.
Enabling measure: Reduce
Importantly, green hydrogen provides pathways to
decarbonize industrial processes where emissions
investment risk for industrial
are otherwise hard to abate. For example, green players who make long-term
hydrogen can reduce emissions related to steel capital commitments
production through two critical adaptations:
– Green hydrogen can partially replace coke in a The investment cycles on these future capital
blast furnace, resulting in up to 20% reductions commitments are very long, sometimes as much
in CO2 emissions as 25 years or more. Interventions could encourage
industry players to commit the required capital for
– Green hydrogen can replace natural gas in green processes for these long investment cycles.
electric arc furnaces through a direct-reduced This can be done by:
iron (DRI) process that reduces CO2 emissions
by as much as 90%52 – Reducing the cost of capital: Industrial
players can be encouraged to make capital
To achieve long-term sustainability of steel, India commitments for new plants by offering
will need to scale its use of green hydrogen in the incentives to reduce the perceived cost of the
DRI manufacturing process. However, there is investment. These include measures such as
limited DRI steel capacity in India today, and steel accelerated depreciation, discounted land and
production is primarily driven by blast furnaces that tax rebates throughout the life cycle of the plant.
use coal or coke. In the long run, building a green
steel industry will require the replacement of blast – Making more funds available: Investments can
furnaces with DRI set-ups throughout the country be encouraged if investment funds are readily
– a capital-intensive and potentially operating-cost available. Indian stakeholders could consider
expensive investment that will necessitate buy-in including green hydrogen within the Priority
from industry, government and end customers. Sector Lending List to accelerate fund availability.

– Adopting a long-term vision: Extending a Enabling measure: Set green
25-year vision for green hydrogen investments
can alleviate some long-term risks. In India, the
hydrogen by-product standards
model for such long-term policies is already in
place, in the form of 20-year power-purchase India recently launched standards for green
agreements for renewable energy. Such hydrogen, defining it as hydrogen produced using
plans decrease the investment risk of capital renewable energy (including through electrolysis
expenditures by ensuring that the technologies or conversion of biomass) with less than 2kg
involved have a guaranteed long-term use. CO2/kg hydrogen emissions over a 12-month
period.53 However, detailed methodology for
– Customer/demand-side mandates: Setting measurement, reporting, monitoring and on-site
demand-side mandates specific to the industry verification of green hydrogen and its derivatives
can reduce the risk of capital investments is yet to be specified.54 An important next step for
by ensuring long-term demand for green stakeholders will be the establishment of precise
substitutes. For example, potential mandates definitions, usage thresholds and carbon emissions
to use a percentage of green steel in vehicle boundaries for products made using green
manufacturing could ensure demand for steel hydrogen to be identified as “green”; for example,
manufactured using green hydrogen. “green steel” or “green cement”. Establishing such
guidelines will provide clarity to both customers
and producers alike.
3.3
Greening transportation
In India, road transport alone accounts for more Despite ongoing R&D and pilots, the operational
than 10% of CO2 emissions.55 The country has an infrastructure for such usage has not yet been
existing low-CO2 emissions pathway for rail and established. For instance, even though fuel-
light-duty road transport, including rail electrification cell technology to run HDVs currently exists,
and battery-powered electric vehicles. But, for other the technology and infrastructure required for
modes of transport – including road-based freight adequate refuelling is still under development.
transport by heavy-duty vehicles (HDVs), aviation Hence, these sectors require support in developing
and maritime shipping – green hydrogen can these technologies.
provide a novel, much-needed green pathway. For
example, in the future, a substantial share of heavy-
duty road transport could be handled by hydrogen-
powered fuel-cell electric vehicles (FCEVs).

Enabling measure: Facilitate Enabling measure:
support for R&D and pilots Establish hydrogen mobility
technology standards
Various hydrogen-based technology variants are
currently undergoing R&D throughout India. These Currently, commonly accepted standards
include hydrogen-based internal combustion engines throughout the hydrogen-based mobility value
(ICE), hydrogen fuel cells, hydrogen-blended fuel and chain are lacking in India – especially compared to
production of fuels using ammonia and methanol. the existence of such standards in other countries,
The Ministry of New and Renewable Energy launched including Australia, Canada, Germany, Japan,
the R&D Roadmap for Green Hydrogen Ecosystem South Korea, the USA and the UK.
in India earlier in the year, which creates a foundation
for enabling R&D.56 Additionally, stakeholders can For example, India currently has no nationwide
support the Indian transport sector’s goal of reaching standards for fuel-cell modules in HDVs. To
commercial readiness regarding green hydrogen establish nationally accepted standards for
implementation by lending support to R&D and pilot hydrogen mobility technology, Indian stakeholders
programmes. Incentives to create large-scale testing could work to create common protocols for
facilities, for example, could jump-start indigenous all hydrogen-based technologies under pilot
technology development for hydrogen-based programmes or in R&D. This includes fuel-cell
transport in HDV, aviation and maritime shipping. modules, hydrogen ICEs, hydrogen refuelling
stations and the use of ammonia or methanol as
Apart from delivering this technological support, shipping fuels. Additionally, stakeholders could
stakeholders could also work to develop a set of invite relevant researchers and scholars from
common, nationwide standards for large-scale academic institutions to participate in standards
green hydrogen adoption. Such standardization is creation to aid in the construction of cohesive and
critical if “green transport” is to grow commercially credible metrics. For example, in the USA, the
throughout India. In this pursuit, stakeholders could American National Standards Institute (ANSI) and
look to electric vehicle (EV) battery standards as a the Standards Development Organization (SDO)
model. These standards are regularly updated to collaborate on hydrogen technology standards. The
reflect regulation changes as well as revisions to ANSI oversees the process and approves national
testing and certification protocols, which are driven standards, while the SDO, which includes academic
by technological advances in the EV market.57 and industry groups, sets the standards.58
3.4
Power and heat
Green hydrogen in auxiliary power generation is still encourage pilot projects and enhanced R&D by
in its early days. Current interventions are focused on working to invest in cutting-edge laboratories and
encouraging the development of a thriving ecosystem study facilities for Indian researchers and engineers
backed by adoption in the three other use categories. employed in this field. Additionally, industry players
could act to encourage technology-transfer
Developing technology to augment the use of agreements with representatives from international
green hydrogen in auxiliary power generation is academic institutions, so that India’s green
critical for its uptake in these applications. This is hydrogen industry can grow using best practices
an area rich for development, and stakeholders can already in use in other countries.

Goal 4 Capitalize on India’s
export potential
India has the potential to become a green
hydrogen exporter, which could also spur
domestic ecosystems.

India could The cost differential inherent in producing green – The export economy can positively influence
emerge as a cost- hydrogen in various countries provides an emerging domestic demand by enabling scaled production,
competitive green opportunity for international trade in its derivatives. leading to a decrease in production costs
hydrogen derivative Globally, the EU, Japan and South Korea are
already exploring international agreements related – India’s green hydrogen producers could
exporter, thanks
to hydrogen imports driven by the high cost of local expect a better short-term value realization
to its access to
production and their net-zero aspirations. Given this through exports
relatively low-cost climate, India could emerge as a cost-competitive
renewable energy, green hydrogen derivative exporter, thanks to its – Capturing this import demand early can prove
a skilled workforce access to relatively low-cost renewable energy, a to be a strategic enabler for becoming a scaled
and a connected skilled workforce and an enabling infrastructure in exporter in the 2030s and 2040s, when cost
power grid. the form of a connected power grid. curves and technologies have stabilized – this
could be economically advantageous for India,
The green hydrogen ecosystem in India is still which has historically relied on energy imports
nascent, so there is relatively little domestic demand
for the product to date. Potential international To emerge as a leader in green hydrogen derivative
importers such as the EU and Japan have, however, exports, though, India will have to compete with
set long-term green hydrogen targets, which would other countries where green hydrogen production
suggest a need for imports to meet the targets. costs are expected to be low, for example, Saudi
Capitalizing on this potential international demand Arabia, Chile and Australia.
could affect India’s hydrogen ecosystem as well as
its economy in the following ways:
4.1
Enable Indian exporters to thrive by creating
demand for Indian green hydrogen
The EU, Japan and Singapore are expected to be production. Drivers for green hydrogen demand in
significant importers of green hydrogen, given their these markets are shown in Figure 10.
demand targets for 2030 and the high local costs of
FIGURE 10 Global green hydrogen derivatives import opportunities and key demand drivers
Territory 2023 GH2 2030

Demand drivers
cost ($/kg) Target (MMTPA)3 Imports (MMTPA)
20 ~10 A minimum of 42% of hydrogen for industries, to be sourced

6.81
from renewable energy by 2030.
EU “We want to make Germany and Europe a lead market for green
hydrogen. We are therefore launching a first auction procedure
for the import of green hydrogen worth €900 million.”
European Commission, 2022
8.0 0.4 N/A Japan and South Korea importing green ammonia for co-firing
power plants.
Japan Hydrogen mobility to rise, along with that of fuel-cell vehicles and
refuelling stations.
“We have positioned hydrogen as one of the priority areas in the
Green Growth Strategy.”
Ministry of Economy, Trade and Industry, Japan, 2021
N/A 1–1.5 To be used as a low-carbon fuel across maritime, aviation and road
6.62
transport.
Singapore Green ammonia to be imported for blending with fossils to achieve
net-zero target.
“Singapore believes that low-carbon hydrogen has the potential
to be the next frontier of our efforts to reduce our emissions.”
Deputy Prime Minister, Singapore, 2022
Notes: 1. Prices include subsidies; 2. price for low-carbon hydrogen; 3. targets for low-carbon hydrogen consumption.
Source: Bain & Company analysis; secondary research

Enabling measure: Pursue greater green ammonia to establish storage bunkers
near ports for their products.62 In the future, port
participation in multilateral initiatives infrastructure could be optimized further to allow for
with potential importers green hydrogen production and conversion on site.
India should prioritize international cooperation “India already has existing port infrastructure, but it
and the co-development of hydrogen networks needs to ramp up its storage to create an enabling
and supply chains if it hopes to establish itself as ecosystem for global uptake,” said a leading Indian
a leading international exporter of green hydrogen energy producer. To properly develop India’s port
derivatives. Already many green hydrogen infrastructure for efficient green hydrogen derivative
derivative producers have signed MoUs and exports, stakeholders could work to encourage
export pacts with importers. For example, Australia PLIs to support private investments related to port-
has signed an export deal with Japan to export adjacent conversion and reconversion facilities.
renewable hydrogen and ammonia,59 while the Additionally, Indian industry and government players
Netherlands and Australia have signed MoUs could partner to establish green hydrogen special
for the establishment of a hydrogen network, economic zones (SEZs) around port regions.
including trade policy, port infrastructure and new SEZs use tax incentives, fiscal concessions and
technologies.60 Although most of these MoUs are duty benefits to support the development of
for small initial volumes, they define a precedent for specific sectors – and their implementation on
increased global trade. land near ports could jump-start green hydrogen
infrastructure.63
While India has signed an MoU with Singapore for
green hydrogen derivative exports,61 opportunities
for further international engagement exist. India Enabling measure: Harmonize
should work to enter into mutually beneficial MoUs
with countries from multiple geographical regions
global standards and certification
in order to fully develop its capacity for green mechanisms
hydrogen derivative development and trade.
Another critical aspect of exports is establishing
harmonized standards for seamless global trade.
Enabling measure: Develop port Over the years, organizations such as the ISO and
the International Electrotechnical Commission (IEC)
infrastructure for green hydrogen have been created to include global representation
derivative exports for the development of universally accepted
standards in different application areas. Given green
To maximize demand drivers facilitated through hydrogen’s nascency, there are currently no such
multilateral international trade agreements, global governing bodies establishing platforms
India should expand its green hydrogen export or standards for its production. Instead, each
infrastructure. Exports of green hydrogen derivatives country has its own standards for green hydrogen
will require conversion (at the production site or production processes and emissions limits. For
at the port), storage and shipping facilities at port example, India includes “banked” renewable energy
terminals. Recently the Indian government began electricity as part of its green hydrogen definition,
permitting manufacturers of green hydrogen and while the EU does not permit its inclusion.
FIGURE 11 Disparity among renewable standards affects demand for green hydrogen
(voluntary market mechanisms with published technical criteria [IRENA])
Carbon threshold (kg CO2e/kg H2)

Country Production method Year issued
to qualify as clean or green hydrogen
India Renewable electricity 2023 2.0

(electrolysis and conversion
of biomass)
China Renewable electricity; 2023 4.9 (threshold for “low-carbon”

low-carbon electricity hydrogen is different)
International Renewable electricity 2022 1

(Voluntary standard by Green
Hydrogen Organisation)
Note: Emissions threshold refers to the maximum permissible emissions limits for various standards to qualify as low-carbon and/or green hydrogen.
Source: Renewable Energy Institute, Revised Basic Hydrogen Strategy Offers: No Clear Path to Carbon Neutrality; IEA, Ministry of New and Renewable Energy,
“Green Hydrogen Standard for India”

While there is disparity today between global to global standards, thereby reducing potential
standards, potential exporter countries have inconsistencies that could prevent India’s green
embarked on initiatives to develop a common hydrogen from being accepted by international
set of guidelines. Saudi Arabia, for example, markets. Additionally, work could be done to clarify
has configured its production standards to meet current guidelines surrounding the treatment of
market requirements in both Europe and the Asia- green attributes for export-oriented units. Currently
Pacific region. In this way, it is working to position it is not clear whether such exports should be
itself as a global supplier of renewable and low- counted towards India’s nationally determined
carbon hydrogen.64 contributions (NDC) or the importer’s NDC.
The Hydrogen Production Analysis (H2PA) task force Finally, India should follow successful models set by
of the International Partnership for Hydrogen and other countries, where clear guidelines for domestic
Fuel Cells in the Economy (IPHE) is devising ways green hydrogen certification have been established.
to develop a commonly accepted methodology For example, the EU has established certifications
for estimating emissions throughout the green for green hydrogen – dubbed “CertifHy” – that
hydrogen life cycle. If adopted, this will facilitate include high-quality hydrogen certification schemes
international trade.65 to promote the development of transparent and
credible markets for green hydrogen throughout
India, too, will benefit by harmonizing its standards Europe. The EU has also brought in guarantees of
mechanisms in line with importers’ market origin (GOs) for renewable energy, which enable
requirements. For example, stakeholders could users to track and verify the origin and quantity of
prioritize the development of cohesive guidelines renewable energy produced anywhere in Europe.66
that support the translation of Indian standards

Goal 5 Disincentivize carbon-
intensive alternatives
Investments in carbon-intensive
alternatives should be diverted to green
pathways, including green hydrogen.

Each of the previous four goals focuses on creating Stakeholders can build on this foundation to provide
incentives for green hydrogen production by driving more support for the transition towards green
demand and making it more affordable and more hydrogen and away from high-carbon-emitting
efficient to use. Demand for green hydrogen can fuels by introducing mechanisms to establish
also be built through policies that disincentivize the comprehensive carbon pricing and tax frameworks.
use of carbon-emitting fuel alternatives. This, of course, needs to be offset against the
potential impact on energy affordability for the
domestic population. Some of the recommended
Enabling measure: Introduce interventions could be:
penalties on the use of carbon- – Reallocating existing coal subsidies (for
intensive alternatives, with plans to example, create incentives for electrification
use the funds collected to finance rather than coal usage)71
the green hydrogen economy and – Setting aside a portion of fossil-fuel revenue to
other transition pathways establish a green hydrogen development fund
– Levying additional carbon pricing (tax or other

India’s current subsidy and tax regime encourages mechanisms) on fossil fuel-based technologies,
transition from coal to less-polluting natural gas by while balancing increased cost to the customer
taxing the use of coal and providing subsidies on against cost reduction in green technologies
natural gas consumption. Specifically, India has
introduced an INR 400 (~$4.80)/tonne coal tax – Establishing emissions penalties for the
called the National Clean Energy and Environment development of carbon-intensive manufacturing
Fund (NCEEF)67 as part of its strategy to fund processes such as blast furnace-based steel
decarbonization transition. This translates to a plants to encourage greener technologies
carbon tax of $5/tonne of CO2 emissions. While (for example, direct reduction iron–electric
India’s tax fee has increased from INR 50 (~$0.60)/ arc furnaces [DRI–EAF] using scrap steel and
tonne in 2011,68 it is still lower than the carbon- renewable energy)72
tax rates of other countries. (For example, both
Germany and the UK have higher rates, with fees – Encouraging companies to set internal carbon
now set at $35/tonne CO2 and $22/tonne CO2, costs to better enable the transition to green
respectively.69) energy alternatives (for example, Tata Steel has
established an internal carbon pricing of $40/
To further encourage the use of natural gas in ton of CO2)73
India, the government has set a cap on the cost of
natural gas produced or imported by nationalized
oil companies, including the Oil and Natural Gas
Corporation (ONGC) and Oil India.70

Roadmap
Green hydrogen is currently undergoing early-
stage adoption and expansion in India. Several
priorities must be met if the country hopes to
grow the industry.
By reducing the cost of producing and delivering The roadmap below recommends the phasing
green hydrogen, increasing domestic demand and of the recommended strategies to achieve these
establishing its power as a global green hydrogen ambitions. While most of them should, and need,
exporter, India can further its fledgling green to happen quickly, a phased plan can reduce the
hydrogen ecosystem and establish a pathway to stress on implementing agencies while balancing
meet its ambitious goal of creating 5 MMTPA of other decarbonization priorities (for example, the
green hydrogen by the 2030s. biofuels economy and the scaling of renewable
energy capacity).
FIGURE 12 Enabling measures roadmap
Goal Enabling measure Near term Medium term Long term

CY24–26 CY27–30 CY31–50
Reduce the cost to produce green Cost of energy storage system needs to reduce rapidly
hydrogen to less than $2/kg
Consistency can be established across state
transport/distribution charges
Subsidies can be awarded to early adopters
Long-term policy views can reduce the risks of

capital investment
R&D can support electrolyser technologies that are attuned

to India’s needs
Reduce or eliminate costs related Scaling of transportation and conversion/reconversion

to green hydrogen conversion, infrastructure is needed
storage and transportation
Build technology and infrastructure for green
hydrogen storage
Support Category 1: Reduce the cost of green hydrogen for

industries Greening existing existing grey hydrogen users
that are most grey hydrogen users
likely to
adopt green Category 2: Investment risk could be reduced for industrial players
hydrogen Wider adoption who make capital commitments for new plants
across industrial
processes Green hydrogen by-products standards can be set
Category 3: Facilitate support for R&D/pilots

Greening
transportation Establish hydrogen mobility technology standards
Capitalize on India's Greater participation in multilateral initiatives with

export potential potential importers
Development of port infrastructure for green

hydrogen derivative exports
Harmonized global standards and certification mechanisms
Disincentivize Penalties on usage of carbon-intensive alternatives can be

carbon-intensive enacted, with plans to use collected funds to finance the
green hydrogen economy and other transition pathways
alternatives
Source: Expert interviews and Bain & Company analysis

Conclusion
Green hydrogen has a critical role to play in
driving India’s net-zero transition and securing
its energy needs. The country has embarked on
a bold journey through the launch of its National
Green Hydrogen Mission.
To achieve its ambitious goal of producing at least Green hydrogen is still in an emerging phase. As
5 MMTPA of green hydrogen production by 2030, with the evolution of any new technology, measures
India should work to reduce the cost of green that have a shorter time-to-impact and higher ease
hydrogen by lowering the associated renewable of implementation could have the most profound
electricity expenses and investing in advances near-term effects in steering India’s green hydrogen
in electrolyser manufacturing, infrastructure and ecosystem towards maturity.
innovative R&D.
If India is to reach its goal of becoming a global
This report proposes a roadmap defined by five leader in green hydrogen production, it is vital that
development goals, focused on encouraging the its central and state governments work together
integration of green hydrogen to meet India’s with industry participants and academia. Taking
fuel demands and on disincentivizing the use of such a collaborative approach will enable the
carbon-emitting fuel sources. Facilitating exports country to make the necessary changes and foster
could be another economic incentive that the the innovations required to accelerate the growth of
green hydrogen economy could provide. Also, the this exciting new energy technology.
incremental value being created during the process
of national decarbonization could be used to further
aid domestic decarbonization goals.

Abbreviations
AEM LPG
Anion exchange membrane electrolyser Liquefied petroleum gas
ALK MMTPA
Alkaline electrolyser Million metric tonnes per annum
BESS MoPNG
Battery energy storage systems Ministry of Petroleum and Natural Gas, Government
of India
BNEF
Bloomberg New Energy Finance MSEDCL
Maharashtra State Electricity Distribution Company
CPSU Limited
Central public sector undertaking
PEM
DISCOMs Proton exchange membrane electrolyser
Distribution companies
PLI
ESS Production-linked incentive
Energy storage systems
PSH
GHG Pumped storage hydropower
Greenhouse gas
PV
GST Photovoltaic cell
Goods and services tax
RE
GUVNL Renewable energy
Gujarat Urja Vikas Nigam Limited
RPO
HDV Renewable power obligations
Heavy-duty vehicles
RTC
IEA WEO Round-the-clock
International Energy Agency World Energy Outlook
SECI
IRR Solar Energy Corporation of India
Internal rate of return
SEZ
LCOS Special economic zones
Levelized cost of storage
SOEC
LNG Solid oxide electrolyser cells
Liquefied natural gas
T&D
LOHC Transmission and distribution
Liquid organic hydrogen carrier

Contributors
World Economic Forum Bain & Company
Noam Boussidan Rachita Gupta

Manager, Policy Engagement and Regional Action, Senior Associate Consultant, Bain
World Economic Forum, Switzerland & Company, India
Marina Colombo Rakind Gupta

Manager, Transforming Industrial Ecosystems, Manager, Bain & Company, India
Hydrogen, World Economic Forum, Switzerland
Sachin Kotak
Jörgen Sandström Partner, Bain & Company, India
Head, Transforming Industrial Ecosystems,
World Economic Forum, Switzerland Dhairya Shrivastava
Consultant, Bain & Company, India
Debmalya Sen
Lead, Advanced Energy Solutions Industry, Karan Singh
World Economic Forum, India Partner, Bain & Company, India
Acknowledgements
World Economic Forum Bain & Company
Geetu George Gaute Andreassen

Partner Lead, Business Engagement – India and Partner, Bain & Company, Norway
South Asia, World Economic Forum, Switzerland
Zach Cole
Varsha Nitish Associate Partner, Bain & Company, Norway
Partner Services Specialist, World Economic
Forum, Switzerland Per Karlsson
Partner, Bain & Company, Norway
Anoop Ramakrishnan
Lead, Regional Agenda – India and South Asia, Are Kaspersen
World Economic Forum, Switzerland Associate Partner, Bain & Company, Singapore
Peter Meijer
Production Vice-President, Bain & Company, Belgium
Brian Murphy
Laurence Denmark Partner, Bain & Company, Australia
Creative Director, Studio Miko
Prashant Sarin
Xander Harper Partner, Bain & Company, India
Designer, Studio Miko
Gopal Sarma
Alison Moore Partner, Bain & Company, India
Editor, Astra Content

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Green Hydrogen Enabling Measures Roadmap

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Blueprint for the evolution of green hydrogen in India  5

The case for green hydrogen 8

1 Reduce green hydrogen production costs 10

2 Optimize green hydrogen delivery costs 17

3 Drive domestic uptake 22

4 Capitalize on India’s export potential 28

5 Disincentivize carbon-intensive alternatives 32

© 2024 World Economic Forum. All rights

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 2

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 3

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 4

Landed cost of round-the-clock (RTC) Eliminate or reduce the cost of conversion/

1 Greening existing hydrogen users (refining, fertilizer)

4 Energy (power, cement)

Support R&D and pilots for blending with existing energy

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 5

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 6

Stakeholders can also boost demand for green

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 7

– Industrial feedstock: chemical feedstock in – In 2020 the Department of Energy established

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 8

Overview of National Green Hydrogen Mission

– Clearly articulated targets for production of 5 MMTPA of green hydrogen by 2030

SIGHT programme ($2.1 billion) Other initiatives ($0.2 billion)

Direct production incentive up to $0.5/kg Base incentive at $54/kW in Year 1 to

Cost reduction Export infrastructure Other incentives

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 9

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 10

FIGURE 3 Average renewable energy costs for leading international producers

India is relatively cost-competitive globally in renewable energy

KSA China India Australia USA Germany

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 11

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 12

FIGURE 4 RE + ESS costs of various energy tenders

Project capacity 1,500 MW 1,200 MW 1,200 MW 1,200 MW

Technology mix RE + ESS RE + ESS RE + ESS Solar + ESS

Lowest tariff 4.38 6.12/4.04 4.64 6.68

Present status Bidding complete PSA signed Awarded Awarded

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 13

– Environmental stipulations and other land

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 14

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 15

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 16

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 17

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 18

Situation Anticipated large-scale hydrogen consumption in EU (40 GW)

Source: European Hydrogen Backbone, 2020

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 19

Project Country Production Description Electrolyser

España GW and 3.6 million tonnes of green hydrogen production by 2030

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 20

FIGURE 7 Global hydrogen storage capacity

Large Medium Small– Large Large Small

300–10,000 300–2,500 0.18–4,500

Possible future Not

Green Hydrogen: Enabling Measures Roadmap for Adoption in India 21

Blueprint for the evolution of green hydrogen in India 5

The case for green hydrogen 8

1 Reduce green hydrogen production costs 10

2 Optimize green hydrogen delivery costs 17

3 Drive domestic uptake 22

4 Capitalize on India’s export potential 28

5 Disincentivize carbon-intensive alternatives 32