Page 89 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

Green H2: ‘Greenifying’ economic activity

While solar energy helps in greening electricity and power generation, green hydrogen helps in
‘greenifying’ wide swathes of economic activity. Lower solar energy costs accompanied by favourable
government policies are likely to drive demand for green hydrogen over coming years.
Hydrogen as clean energy

Hydrogen is the most abundant chemical element in nature and is heavily used in industrial activity.
This gas has been used to fuel cars, airships and spaceships since the beginning of the 19th century. India would
require USD15
Hydrogen is generated via a chemical process known as electrolysis. This method uses electricity to billion in funding
separate hydrogen from oxygen in water. The nature of electricity production determines the colour to set up 15GW
of hydrogen. Electrolysers that run on renewable energy produce what is called green hydrogen while green hydrogen
those run by fossil fuels produce what is termed as grey hydrogen. electrolyser
capacity by 2030
H2 use so far largely driven by industrial applications

Hydrogen (H2) has many applications in industries such as refining (33%), ammonia production (27%), Newer
methanol production (11%) and steel production (3%). The IEA forecasts that, over longer term as well, applications
existing industrial uses shall continue to form a significant demand base. Nevertheless, newer industry of H2 would
applications shall potentially mushroom, thereby driving growth strongly. Accordingly, ensuring cleaner mushroom over
production of hydrogen becomes very important. longer term

Types of application Application Size of 2030 opportunity Long-term
(kt/year) potential scale

Major hydrogen uses today Chemicals (ammonia and methanol) Over 100 High
Oil refineries and biofuels Over 100 Medium
Iron and steel (blending in DRI) 10–100 Low
New hydrogen uses Buildings Over 100 High
for a clean energy system (conversion to 100% Hydrogen)

Road freight Over 100 High
Passenger vehicles Over 100 Medium
Buildings(blending in the gas grid) Over 100 Low
Iron and steel 10–100 High
(conversion to 100% Hydrogen)
Aviation and maritime transport Under 10 High
Electricity storage Under 10 High
Flexible and backup power generation Under 10 Medium
Industrial high temperature heat Under 10 Low
Source: Nuvama Research

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