Reliance and Waaree to Benefit from India's Green Hydrogen Cost Reduction by 2030
India's green hydrogen production costs are expected to drop by nearly 50% by 2030, primarily due to falling renewable energy prices and a significant decrease in electrolyser costs. Currently priced at $3.5-4 per kg, the goal is to reach $1.6 per kg through the National Green Hydrogen Mission, with demand projected to double to 12 million tonnes annually, benefiting companies like Reliance Industries and Waaree Energies.
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India's green hydrogen production costs are projected to decrease by nearly 50% by 2030, driven by reduced renewable power prices and declining electrolyser costs, according to Nuvama. The current cost of green hydrogen in India is approximately $3.5-4 per kg, compared to $2.2 per kg for grey hydrogen.
Key factors contributing to this decline include cheaper renewable electricity, which constitutes 60-70% of production costs, and significant reductions in electrolyser prices, expected to fall by up to 75%. The National Green Hydrogen Mission aims to lower costs through viability gap funding, targeting $1.6 per kg by 2030.
Demand for green hydrogen is anticipated to double to around 12 million tonnes per annum, with major consumers identified in the fertiliser and refining sectors. Companies like Reliance Industries and Waaree Energies are positioned to benefit from these trends.
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