India is rich in renewable energy resources like wind and solar power and is suitably placed to become a competitive market for green hydrogen production. This is highlighted in the paper “India’s opportunity for a strategic shift in global energy trade” by Alvarez & Marsal which analyses the competitiveness of various global regions to produce green hydrogen. Apart from India, the report mentions countries Egypt, Latin America (Chile and Argentina) as well as countries such as Saudi Arabia, the UAE, the Chinese mainland, Australia and the United States as competitive markets for green hydrogen.
According to the report, green hydrogen competitiveness depends on factors like renewable energy resources; manufacturing, engineering and construction competitiveness; the electricity ecosystem and the cost of capital. Further, the UAE followed by Saudi Arabia could produce green hydrogen at the lowest levelized cost of hydrogen (LCoH) amongst all the 10 countries analysed for their competitiveness in the sector. Meanwhile, India is expected to rank third in terms of low LCOH.
UAE is estimated to have LCOH of of $2.7/kg in 2023 and a projected $1.7/kg in 2030, and Saudi Arabia’s LCOH is expected to be $2.9/kg in 2023 and $1.8/kg (projected) in 2030. India is projected to produce green hydrogen at LCOH of $3.2/kg in 2023 and $1.8/kg in 2030 according to the report.
