Page 21 - Edelweiss India Conference 2022 FLIPBOOK

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Inevitable shift to low-cost green H2

Rising environmental concerns about carbon emissions from use of fossil
fuels have accelerated the pace of hydrogen adoption across the world.
Favourable government policies to curb emissions are likely to drive green

hydrogen demand over coming years.
Blue hydrogen refers
to hydrogen produced
Green H2 costs plunging as power costs slide, capacities using fossil fuels such

grow 20x as natural gas with
CO emission reduced
2
According to the International Energy Agency’s Hydrogen Projects Database, 320 green by the use of Carbon
Hydrogen production demonstration projects have been announced globally, representing Capture Usage and
about 200MW of electrolyser capacity, with new project announcements being made Storage (CCUS)
regularly.

According to IRENA, green hydrogen production costs have begun to drop with decline in
renewable power costs (electricity costs represent 60–70% of renewable hydrogen costs)
while capital costs can go down due to expected reductions in the cost of electrolysers
as more projects scale up. It estimates annual global PEM electrolysers' manufacturing
capacity of 100GW in 2030 (current: 3–7.5GW).

Over the past one decade, demand for hydrogen has increased at a CAGR of 4% to 80mtpa
in 2021 (50mtpa in 2010) and is further expected to expand at a CAGR of 3% to 100mtpa
by 2030. While the share of green hydrogen stands miniscule at 0.1% in 2021 (0.08mtpa in Grey hydrogen is also
2021), it is anticipated to surge at a CAGR of 71% to 10mtpa by 2030, thereby contributing referred to as hydrogen
10% to the overall demand mix.
produced using fossil

Currently, India consumes about 6mn metric tonnes of grey hydrogen per annum, which is fuels such as natural gas
about 8.5% of the global hydrogen demand. India’s hydrogen market, which was valued at but CO is not captured
2
USD50mn in 2017, is projected to reach USD81mn by 2025, expanding at a CAGR of 6.3% or stored and instead
from 2018 to 2025. it is released into
atmosphere
APAC and Western Europe together account for 82% of upcoming green hydrogen projects,
wherein Australia is leading the pact. According to GlobeNewswire, the market size of
green hydrogen was USD1bn in 2020, and is expected to increase at a CAGR 16% between
2020 and 2028 to USD3.2bn.

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