Govt urged to unlock green Hydrogen demand
New Delhi: India has set a bold near-term milestone of creating 5 million metric tonnes (MMT) of green hydrogen production capacity by 2030. However, unlocking green hydrogen demand at scale is critical to achieving this vision, a new report said on Thursday, adding that export opportunities may generate up to 1.1 MMT in green hydrogen demand.
However, without a matching push on the demand side, this potential may remain underutilised, according to the joint report by Bain Company, the Confederation of Indian Industry (CII), and Rocky Mountain Institute (RMI).
According to the report, blending green hydrogen into current industrial processes like oil refining, fertilizer production, and piped natural gas (PNG) distribution could together create up to 3 MMT of demand by 2030.
On the global front, exports of green hydrogen, ammonia, and green steel could contribute another 1.1 MMT, while public procurement of green steel for infrastructure could unlock 0.6 MMT of demand.
Blending even small percentages of green hydrogen -- 10 per cent in refining and 20 per cent in fertilisers -- could be achieved with minimal cost increases, the report noted.As production costs continue to decline, these blend rates could be scaled up further.The report also highlights opportunities in niche sectors like chemicals, glass, and ceramics.These industries already use hydrogen extensively.
Another critical suggestion in the report is leveraging public procurement. By mandating the use of green steel in government projects such as bridges, housing, and railways, the government can act as an anchor customer and create long-term demand stability.Exporting green steel, especially to the EU under its new carbon tax rules, could add another 0.13–0.18 MMT.
Separately, the Chairman of ReNew, Sumant Sinha,said India needs 40 million tonnes of Green Hydrogen (annually) to achieve the goal of net zero by 2070. He suggested that India needs to replace the use of 6 million tonnes of Grey Hydrogen by Green Hydrogen. He suggested subsidies for boosting Green Hydrogen production in the country. He was of the view that India needs to deal with issues of high cost, GST, long term contracts and demand creation to boost Green Hydrogen in the country.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
36 minutes ago
- Hans India
AP to halve logistics costs with Rs 20,000 cr infra push
Visakhapatnam: Minister for Roads and Buildings, Infrastructure and Investments BC Janardhan Reddy has underscored that the state is moving forward with a clear vision to emerge as South Asia's logistics gateway. He was speaking at the Ports and Logistics Conference, organised by the Confederation of Indian Industry in Visakhapatnam on Friday. The conference focused on unlocking the state's port potential, improving last-mile connectivity and promoting multimodal logistics integration. The Minister highlighted that Andhra Pradesh's ports now contributed over 5 per cent to the state's GSDP, supporting nearly one million jobs. Visakhapatnam Port alone handled 82.62 million tonnes in FY 2024–25, while the Krishnapatnam and Gangavaram ports together handled over 54 million tonnes, reflecting robust growth and private participation. The Minister observed that the government was investing over Rs.20,000 crore to improve connectivity through 1,040-km of new highways and major corridors like Badvel-Nellore and the VCIC rail line. 'Andhra Pradesh wants to cut logistics costs by half with Rs.20,000 crore infrastructure push,' the Minister underlined. The Chairman of Andhra Pradesh Maritime Board D, Satyanarayana, highlighted that Andhra Pradesh was strategically building a robust port-led development model with six operational ports and three new greenfield ports at Machilipatnam, Ramayapatnam, and Bhavanapadu. He shared that these were not being developed in isolation, but as part of integrated logistics and industrial corridors, fully connected through road, rail, and multimodal networks. The Chairperson of Visakhapatnam Port Authority, M Angamuthu, emphasised that Andhra Pradesh had the right foundations to emerge as a maritime entrepreneurship hub, with its strategic location, proactive governance, and well-established port network. He noted that most major ports in the state were currently operating at just 50 per cent capacity, indicating significant untapped potential. The Chairman of CII, G Murali Krishna, highlighted that ports were no longer just trade enablers but strategic national assets influencing diplomacy, jobs, and regional growth. He shared that Andhra Pradesh's balanced economy and strong policy incentives had already attracted Rs.9.2 lakh crore in investments.
Hans India
14 hours ago
- Hans India
India's urban headcount likely to surge by 70 million in next 20 years
New Delhi: India Inc. must take up infrastructure building in cities in partnership with municipal corporations as the country is expected to add 70 million new urban residents in the next two decades by 2045, a senior official said on Friday. Addressing a CII conference here, D Thara, Additional Secretary, Ministry of Housing and Urban Affairs, said that there is a disconnect between India's economic ambitions and the capacities of its urban local bodies, so the private sector needs to be proactively engaged in the urban development of the country. 'India is a rich nation with poor municipalities,' she remarked. She was delivering the keynote address at a CII conference on 'Exploring Urban Dynamics: Outlook 2030'. She said the growing urban population poses challenges and opportunities as the country will see the creation of many more cities, calling for a pragmatic, revitalisation-first approach to urban development. She underlined the need for targeted interventions to upgrade existing cities, backed by significant investment. The proposed Urban Challenge Fund, she explained, is intended to catalyse this transformation with a mix of 25 per cent public sector seed funding, 50 per cent market capital, and 25 per cent state contribution. 'It's not about building afresh,' she said, 'It's about fixing what already exists - legacy infrastructure, greenfield areas, and urban governance systems.' Prasad Gadkari, executive director & chief strategy officer at NIIF, echoed the importance of enabling frameworks to unlock capital. 'A robust pipeline of projects, predictable revenue streams, and standardised bidding processes are essential,' he said, noting NIIF's readiness to back urban infrastructure initiatives through scalable public-private partnerships. Abedalrazq Khalil, Practice Manager for Urban and Land at the World Bank, placed India's urbanisation in a global perspective. 'By 2050, 800 million people are expected to live in Indian cities. Cities must be enablers of growth, but many are not yet ready,' he said. He further emphasised the need for integrated planning and livability as critical to attracting private investment. Transport integration also featured prominently, with the Regional Rapid Transit System (RRTS) cited as a model for enabling distributed urban employment. In-situ slum redevelopment and smaller-scale, private-led urban initiatives were also discussed as vital components of revitalisation.
Hans India
a day ago
- Hans India
Govt urged to unlock green Hydrogen demand
New Delhi: India has set a bold near-term milestone of creating 5 million metric tonnes (MMT) of green hydrogen production capacity by 2030. However, unlocking green hydrogen demand at scale is critical to achieving this vision, a new report said on Thursday, adding that export opportunities may generate up to 1.1 MMT in green hydrogen demand. However, without a matching push on the demand side, this potential may remain underutilised, according to the joint report by Bain Company, the Confederation of Indian Industry (CII), and Rocky Mountain Institute (RMI). According to the report, blending green hydrogen into current industrial processes like oil refining, fertilizer production, and piped natural gas (PNG) distribution could together create up to 3 MMT of demand by 2030. On the global front, exports of green hydrogen, ammonia, and green steel could contribute another 1.1 MMT, while public procurement of green steel for infrastructure could unlock 0.6 MMT of demand. Blending even small percentages of green hydrogen -- 10 per cent in refining and 20 per cent in fertilisers -- could be achieved with minimal cost increases, the report production costs continue to decline, these blend rates could be scaled up report also highlights opportunities in niche sectors like chemicals, glass, and industries already use hydrogen extensively. Another critical suggestion in the report is leveraging public procurement. By mandating the use of green steel in government projects such as bridges, housing, and railways, the government can act as an anchor customer and create long-term demand green steel, especially to the EU under its new carbon tax rules, could add another 0.13–0.18 MMT. Separately, the Chairman of ReNew, Sumant Sinha,said India needs 40 million tonnes of Green Hydrogen (annually) to achieve the goal of net zero by 2070. He suggested that India needs to replace the use of 6 million tonnes of Grey Hydrogen by Green Hydrogen. He suggested subsidies for boosting Green Hydrogen production in the country. He was of the view that India needs to deal with issues of high cost, GST, long term contracts and demand creation to boost Green Hydrogen in the country.
