Page 91 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

Furthermore, given declining costs of 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, Similar to the
combining solar PV and onshore wind at a hybrid plant has the potential to lower costs even further. Middle East,
India sits in a low-
India truly stands to benefit on this front as it sits in a low-cost geographic zone for hydrogen. In fact, cost geographic
as a case study, we believe an upcoming project in Saudi Arabia suggests that an integrated operation zone for green
of hydrogen production from solar and wind could cost as little as USD1.26/kg versus USD1.74/kg H2 generation
currently. Some of India’s leading companies target to produce green hydrogen at a cost of less than
USD1/kg, which is about one–fourth of the current global levels.

Exhibit 10:
Wafers/ Silica India poised to
ingots cut cost to one–
fourth of current
Solar Solar global cost over
power power Electrolysis
next decade
Cells Modules

Integrated solar plant Power transmission cost Electrolysers Green hydrogen
USD 2.1/kg USD 0.8/kg USD 1.1/kg USD 4.0/kg
Unintegrated - through grid - 2020

Electrolysis

Integrated - without transmission - 2020

Electrolysers Green hydrogen
Reliance’s integrated target USD 1.1/kg USD 3.1/kg

Wafers/ Silica Refinery and
ingots
chemical
Electrolysis Electrolysis applications
account for 71% of
Cells Modules hydrogen usage

Integrated solar plant Electrolysers Green hydrogen
USD 0.7/kg USD 0.3/kg USD 1.0/kg
Source: Nuvama Research, IEA

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