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India’s green hydrogen value chain a $125-billion investment opportunity by 2030: Avendus Capital
The green hydrogen value chain in India is likely to create a cumulative investment opportunity of as much as $125 billion by 2030, driven by the rising focus on sustainability, demonstrated commercial viability, expanding use-cases and a strong regulatory push, according to Avendus Capital.
The biggest chunk within this opportunity is renewable energy production, the key component in the green hydrogen value chain, with an investment potential of almost $80 billion by 2030. Green hydrogen and green ammonia production offer investment opportunities worth $30 billion and $10 billion, respectively, while electrolyser production offers a $5 billion opportunity, the investment bank said in a report.
“India is home to one of the cheapest renewable electricity costs globally, has abundant availability of fresh water and is emerging as a global manufacturing hub – three essential elements required for the production of green hydrogen at a competitive cost,” said Prateek Jhawar, managing director & head of infrastructure & real assets investment banking at Avendus Capital.
Jhawar said that while the commercial and industrial (C&I) business model for domestic consumption of green hydrogen will drive the first set of investments in the sector, the steel industry will form the largest share of offtake contracts in the near term with the imposition of the Carbon Border Adjustment Mechanism (CBAM) in the EU.
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