Page 24 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

Furthermore, given declining costs for solar PV and wind generation, building electrolysers
at locations with excellent renewable resource conditions could become a low-cost supply
option for hydrogen, even after taking into account the transmission and distribution costs
of transporting hydrogen from (often remote) renewables.

Several projects to produce hydrogen from dedicated renewable resources in various parts
of the world are being readied or have been announced. In areas wherein both resources
are excellent, and combining solar PV and onshore wind in a hybrid plant has the potential
to lower costs even further.

Hydrogen costs from hybrid solar PV and onshore wind systems in long-term

CAD/GJ
<=15
15 -17
17 -18
18 - 20
20 - 22
22 - 24
24 - 26
26 - 28
28 - 29
29 - 31
31 - 33
33 - 35
35 - 37
> 37

Source: Edelweiss Research, IEA

Cost advantage of fossil fuel to sustain until 2030
applications account Fuel cost is the single biggest component of hydrogen production costs, except in case of
for 71% of hydrogen hydrogen produced from coal. Currently, producing hydrogen electrolysis (both grid and
usage renewables) appears expensive in comparison with producing hydrogen from fossil fuels.

The IEA reports suggest that hydrogen production from fossil fuels will remain the most
cost-competitive option in most cases. However, with technological advancements in the

fuels for production of hydrogen in the long run.

22 Edelweiss Securities Limited