India's hydrogen market likely to reach $22-23 billion by 2030

By 2050, Singh believes, India is expected to generate 25-30% or 150-180 million metric tonne. In the same period, the global hydrogen industry is expected to generate 600 million metric tons by 2050. Singh added, "The global hydrogen market is estimated to be around $350 billion by 2030. The market is growing at 5 percent CAGR. Europe and China are the biggest consumers thus far."

Hydrogen as fuel is expected to witness a double-digit growth, Singh stated, and green hydrogen will evolve going forward, "India has an abundance of biomass which can be used to produce green hydrogen in the country. It is time India starts to leverage the opportunity," Singh said.

By 2030, green hydrogen generation is expected to be at 5-7 million tonne, likely to grow beyond 20 million tonne by 2023 and 25 million tonne by 2050. India’s green hydrogen policy is envisaged to attract $8 trillion in investments.

At present, hydrogen costs around $8 dollars per kg. Indian companies are aspiring to bring down the cost to $3-4 per kg. "The Indian players are looking at playing the price game — if everything moves as per the wishes of the market players, the last price of hydrogen should be $3-4 per kg. If India manages to reduce costs, then the world will be looking at India for hydrogen.”

Europe, which is hit by the ongoing Russia-Ukraine conflict, is increasingly looking at ways to diversify its energy mix in a cost-effective manner. While India aims to become one of the largest hydrogen suppliers to Europe, it definitely depends on EU nations like Germany, Netherlands, and Italy for industry-size electrolysers and other technologies.

As per trade data, India's imports of machines and apparatus for electro-plating, electrolysis/electrophoresis amounted to $45.6 million in 2022-23 as against $32.57 million in 2021-2022. When it comes to the domestic market, Singh stated, companies are well aware it will open up in a phased manner. Further, one major game changer for the industry in India will be the adoption of hydrogen fuel in the mobility space. The lack of hybrid options is a huge hurdle.

Singh explained, "Even if ancillary industries pick up pace, there will be a rise in domestic demand." In the Indian context, core sectors like fertiliser, refinery, city gas distribution, automobiles and export to the global market is estimated to be 1 million metric tonne by 2026, 7 million metric tonne by 2030 and may grow beyond 20 million metric tonne by 2035.