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India targets multi-billion-dollar green hydrogen export and import plans
India has targeted a leading role in the green hydrogen market, which could result in exports worth $3-5bn and import substitution worth $7-15bn over the next ten years, according to a report by Alvarez & Marshall.
The move is part of the country’s plan to reduce its reliance on imported liquefied natural gas (LNG) and boost domestic GDP growth through sustainable energy sources.
“For India, the case to aggressively support green hydrogen is strong,” said the report. “By moving early, we can stake a claim to a larger share of the global energy trade, substitute some of our imports, especially LNG, and spur domestic GDP growth.”
“By 2030, this could lead to $3-5bn of exports and $7-15 of import substitution, opening the doors to a much larger opportunity in the decades ahead.”
However, India could need to scale up its outlay to $4-12 cumulatively in the run up to 2030, depending on how quickly costs fall.
“While this figure is large in absolute terms, it is small in the context of our economy and our oil import bill, which is estimated at a staggering $1-1.4 trillion over the same period.”
The global green hydrogen trade is expected to be worth between $24-34bn by 2030, led by export-focused countries equipped with ample supply of renewable resources such as Argentina, Australia and Chile.
The report also highlights the focus on green hydrogen imports within the EU as part of its REPowerEU plan, a strategy which targets the import of ten million tonnes of green hydrogen from other countries in 2030.
Together with South Korea and Japan, Europe is expected to import 12m tonnes of low-carbon or green hydrogen by 2030.The US and China are expected to have over 14m tonnes of low-carbon and clean hydrogen demand by 2030. However, due to their significant internal demand, neither country is expected to play a major role in the hydrogen export market by 2030.
According to the report, the green hydrogen suppliers countries will be key to bridging the supply of gas for importer countries. It suggests that the UAE, India and Saudi Arabia can provide low-carbon hydrogen at the lowest cost and will be competitively placed for supply in Europe, Japan and South Korea
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