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India’s green hydrogen sector will need substantial support, estimated at $4 to $12 billion, combined until 2030, to achieve scale, according to consulting firm Alvarez & Marsal. In a report released this week, the firm estimated green hydrogen’s trade opportunity for the world at $24–36 billion by 2030.
The firm said the estimated support is driven by the need to level the playing field against global suppliers who enjoy government subsidies and to enable domestic end-use sectors to transition affordably. “By offering this bridge support, the end-use sectors that operate in competitive markets will be able to adopt sustainable alternatives sooner,” the report said.
A&M listed India, along with the United Arab Emirates and Saudi Arabia, as one of the top three countries well placed in global green hydrogen competitiveness and therefore could partake in a significant share of global trade. The firm expects these three countries to produce green hydrogen at less than $2/kg by 2030.
With an early-mover advantage, A&M said, India can stake a claim to a larger share of the global energy trade, substitute some of our imports, especially liquefied natural gas (LNG), and spur domestic gross domestic product (GDP) growth. “By 2030, this could lead to $3–5 billion of exports and $7–15 billion of import substitution, opening the doors to a much larger opportunity in the decades ahead,” the report noted.
In addition to the generation of green hydrogen and its derivatives, A&M also expects India, along with Mainland China, to have manufacturing cost leadership for electrolyzers, a primary equipment to produce green hydrogen.
