India as a green hydrogen hub? This could be the future
India could become a key player in the global green hydrogen market, which is set to create $500 billion in economic opportunities, consultancy firm Alvarez & Marsal said in a new report released this week.
According to the consultancy firm, India could be at the forefront of green hydrogen development due to its competitiveness in clean energy production: abundant renewable energy resources, competitiveness in manufacturing and low cost of capital.
According to Alvarez & Marsal, countries rich in renewable energy resources such as solar and wind are uniquely positioned to capitalize on the green hydrogen opportunity. These countries include India, Egypt, Chile, Argentina, Saudi Arabia, the United Arab Emirates (UAE), mainland China, Australia and the United States.
“The UAE, India and Saudi Arabia appear well positioned regarding the competitiveness of green hydrogen globally and could therefore participate in a significant share of global trade,” analysts at Alvarez & Marsal write in relationship.
On the other hand, the EU, Japan and South Korea could be early adopters of hydrogen from a demand perspective, with imports around 2030, according to the consultancy firm.
As heavy industry and governments pin their hopes on hydrogen for faster decarbonization, and power companies and oil and gas majors seek to diversify into low-carbon hydrogen production, the costs are still high for the production of green hydrogen and are holding back the massive diffusion of projects, analysts say.
Forecasters, including the International Energy Agency (IEA) – a staunch supporter of all things green – recognize that costs need to be reduced significantly if clean hydrogen is to play a major role in energy transition.
Green hydrogen – which currently costs 3 to 8 euros per kg in some regions – is more expensive than “grey” hydrogen, produced from natural gas, PwC said in an analysis last year.
“Low-emission hydrogen production can grow massively by 2030, but cost issues hamper its deployment,” the IEA said in its September 2023 Global Hydrogen Review 2023 report.
Meanwhile, deposits of the so-called " White" or "Golden" Hydrogen are being sought, that of geological origin, extremely promising, but also very rare.
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The article Is India a green hydrogen hub? These could be the future comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-hub-dellidrogeno-verde-questi-potrebbe-essere-il-futuro/ on Thu, 29 Feb 2024 12:12:25 +0000.