Page 25 - Edelweiss India Conference 2022 FLIPBOOK
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New Energy Digital Manufacturing Capital Markets Human Capital
7
Combined sensitivity
6
CO price sensitivity
5 2
CAPEX and OPEX sensitivity
4
USD/kgH 2 3 Fuel cost sensitivity
WACC sensitivity
2 CO price
2
1 Fuel costs
0 OPEX
Electrolysis Electrolysis Natural gas Natural gas Coal Coal
grid renewable without CCUS with CCUS without CCUS with CCUS CAPEX
Source: Edelweiss Research, IEA
However, in countries with abundant renewable resources, but dependant on natural gas
imports (particularly LNG), producing hydrogen from renewables may be competitive than
producing it from natural gas.
Hence, India’s hydrogen production cost from electrolysis renewables is already in the
lower end of the global range.
Vehicles to add to H2 industrial usage
Newer applications
for hydrogen would
newer applications such as road freight, passenger vehicles and buildings
potentially mushroom
over longer term
H2 use is largely driven by industrial applications
Currently the use of hydrogen is largely dominated by industrial applications such as
production from iron ore (3%).
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