The market for Indian-manufactured hydrogen equipment could be worth $45-50bn by 2030, according to a new report released by the India Hydrogen Alliance (IH2A).
Entitled the ‘Hydrogen Equipment Manufacturing and Services’ report, the market assessment covers all hydrogen production plant equipment, including electrolyser and balance-of-plant equipment, that can be deployed in India, and exported from India to the Asia, Middle East and Africa region.
According to the report, the $45-50bn hydrogen equipment and services market assessment is split 34% for electrolysers stacks, 62% for Balance of Plant equipment and 4% for specialist Engineering Services.
This estimate comprises a domestic hydrogen production plant equipment market of $9bn in India, a figure based on an estimated number of 135 domestic plants by 2030 deployment of 6.8 gigawatt (GW) per annum electrolyser capacity – capable of producing a delivering at least one million metric tonnes of green hydrogen to domestic offtak for industrial use.
The plants could vary between 10 – 100MW using different electrolyser technologies designed to serve a range of end-use configurations including industrial, fertiliser and heavy-duty transport use-cases together with BoP equipment such as compressors, storage tanks, transformers, rectifiers, liquefaction units, air separation units and more.
The report also highlighted an ‘optimistic view’ which would add an additional 3.4GW electrolyser capacity to add $4.5bn to domestic market during the same period.
Jill Evanko, Chief Executive and President of Chart Industries, and founding member of IH2A, highlighted the potential of India to become a regional supply hub for hydrogen production plants, calling it a ‘significant opportunity that will require large-scale manufacturing build out and investments.’
This opportunity also encompasses regional hydrogen equipment exports, which the report reveals is potentially worth at least $34bn with equipment being exported t an estimated 540 projects across APAC, Middle East and African regions.
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“Project developers and equipment majors are waiting to hear from the government on demand aggregation and secured offtake for early projects before they commit large CAPEX investments. The estimated $45-50bn equipment market opportunity is achievable and could turn India into a global supply chain hub in the developing green hydrogen economy,” she added.
Specialist engineering design, EPC and service exports are also estimated to be worth at least $2bn based on 5% OPEX on deployed project CAPEX investments. This is expected to represent at least 162,000 direct and indirect jobs resulting from development of India’s hydrogen economy.
“Hydrogen equipment represents a significant export opportunity for India,” said Amrit Singh Deo, Senior Managing Director of FTI Consulting and IH2A Secretariat lead. “The export market for BoP equipment is larger than the market for electrolyser stacks, ad India should focus on being the preferred equipment supplier to all key hydrogen projects in the region over the next decade.
Citing the opportunity for collaboration, he emphasised the need for India to take advantage of its industrial manufacturing and engineering talent, adding, “India should move quickly before other jurisdictions to build a hydrogen supply chain hub.”
Harbouring ambitions to reach Net Zero by 2070, the Indian government has announced a range of policy measures and incentives as part of the National Green Hydrogen Mission and Green Hydrogen/Green Ammonia Policy 2022.
This aims to overcome barriers to widespread adoption of green hydrogen, currently inhibited by the current cost of its production which could be between $4-5 per kg, approximately double the cost of grey hydrogen.