Green hydrogen is emerging as a key solution to decarbonize hard-to-abate sectors. However, the key to adoption depends on the availability of renewable energy, large-scale manufacturing of electrolyzers, and off-takers.

On the first day of the Mercom India Renewables Summit 2024 in New Delhi, experts discussed strategies to scale green hydrogen production and create a market for the end product among sectors like steel, refining, and ammonia.

Panelists at the session titled ‘Scaling Green Hydrogen to Build a Competitive Marketplace’ featured Rajat Seksaria, CEO of Green Hydrogen and its Derivatives at Adani New Industries; Chirag Kotecha, CEO of Matrix Gas and Renewables; Prashant Choubey, President of Avaada Group; and Prashant Choubey, President of Avaada Group. Priya Sanjay, Managing Director, Mercom India, moderated the discussion.

The panelists explored the incentives required to scale green hydrogen production and strategies for creating demand from heavy industries like steel manufacturing and oil refining.

Rajat Seksaria of Adani New Industries emphasized the extensive infrastructure required for green hydrogen production. The process demands large tracts of land, high-voltage current connectivity, and significant storage and production facilities.

Additionally, hydrogen transportation necessitates laying pipelines to transport derivatives like ammonia, storage units, and port infrastructure.

He underscored the complexity of these requirements, which involve coordination among multiple agencies.

He said Adani New Industries focuses on controlling the entire supply chain to manage these challenges. Seksaria noted, “Our definition of supply chain starts from land acquisition.”

The company is developing an entire ecosystem, including electrolyzers and transmission infrastructure, to produce over 2 million tons of green hydrogen per annum, primarily in Gujarat, with Mundra port as a key hub.

Chirag Kotecha of Matrix Gas and Renewables discussed his company’s plans under the National Green Hydrogen Mission.

Matrix Gas and Renewables has been allocated 237 MW of capacity under Tranche II. It aims to produce 350 MW of green hydrogen, with Phase I expected to be commissioned by July 2026.

Kotecha said he was optimistic about the potential of green hydrogen and advocated for decentralized production plants to meet large-scale demands, such as green steel production and direct reduced iron projects.

He said his company is poised for high growth but faces challenges related to renewable power availability and regulatory issues.

Kotecha also said incentives for green steel, green ammonia, electrolyzers, and green hydrogen were crucial to overcoming these hurdles. “Previously, we were talking about 1 MW to 5 MW projects. Now we are talking about 250 MW projects,” he said, emphasizing the need for indigenous electrolyzer technology to lower the cost of green hydrogen compared to blue and grey hydrogen.

Prashant Choubey, President of Avaada Group, highlighted India’s competitive advantage in terms of tariff and the need for cost competitiveness in green hydrogen production.

He pointed out that electrolyzers constitute 75% of the production cost, and achieving a $2 per kilogram rate is essential. He stressed the importance of pumped storage, with a major policy expected soon to support 20 GW of pumped storage, 125 GW of renewable energy, and 40 GW of electrolyzers.

He was also optimistic about significant reductions in the levelized cost of hydrogen over the next two to three years.

Sandeep Kashyap of RP Sanjiv Goenka Group said his company had earmarked Odisha for its green hydrogen projects, with a capital expenditure of ₹9 billion (~$107.5 million).

He said the company will source renewable energy from third parties to meet the demand for 6 to 6.5 million tons of green hydrogen. The supportive 2024 policy in Odisha is expected to facilitate these plans.

The insights from industry leaders underscore the multi-faceted approach required to scale green hydrogen and build a competitive marketplace.