India is strategically positioned to emerge as a global leader in the rapidly evolving green hydrogen sector, according to Dave Ernsberger, Head, Energy & Commodity Insights at S&P Global Commodity Insights.
This optimistic outlook stems from a confluence of strong governmental support, abundant renewable energy resources, and a clear vision to decarbonize hard-to-abate sectors.
Ernsberger’s insights underscore the significant progress and potential within India, particularly highlighted during the recent S&P Global India Energy Dialogue. The nation’s ambitions in green hydrogen are not merely environmental; they are seen as a critical pathway to energy security and economic growth.
Strategic advantages and policy momentum:
India’s potential is underpinned by several key factors. These include:
Renewable Energy Wealth: India possesses vast untapped potential for solar and wind power, essential for producing cost-effective green hydrogen through electrolysis. The plummeting costs of renewable energy further strengthen this advantage.
National Green Hydrogen Mission: The government’s ambitious National Green Hydrogen Mission provides a robust policy framework, including incentives and schemes aimed at scaling up production and consumption. This mission sets clear targets for green hydrogen production capacity and seeks to reduce imports of fossil fuels.
Growing Domestic Demand: India’s industrial sector, particularly fertilizers, refineries, and steel, represents a significant captive market for green hydrogen, creating a strong domestic demand pull.
“India has the ability to lead the world in green hydrogen,” Ernsberger said. “The intent and the resources are clearly there, and the policy framework is rapidly developing to support this vision.”
Global implications and future outlook:
India’s success in green hydrogen could have profound global implications, not only by providing a sustainable energy source but also by establishing new supply chains and potentially driving down global production costs.
S&P Global’s analysis suggests that as India scales up its production, it could become a significant exporter of green hydrogen and its derivatives, such as green ammonia.
The ongoing developments demonstrate a clear commitment from both the public and private sectors to realize this potential, paving the way for India to play a pivotal role in the global energy transition.
