New Delhi: Market for Indian-manufactured hydrogen equipment will be worth USD 45 billion to USD 50 billion by 2030, according to a recent report by industry body India Hydrogen Alliance (IH2A).
This market assessment includes 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, building India as a supply chain hub for future green hydrogen projects.
According to the report titled ‘Hydrogen Equipment Manufacturing and Services’, the market assessment is split 34% for electrolysers stacks, 62% for Balance of Plant equipment and % for specialist engineering services.
The report makes the case for India to leverage its competitive advantage on manufacturing and engineering design to create a regional supply chain hub for hydrogen plant equipment in the country.
The report estimates comprise domestic hydrogen production plant equipment market of USD 9 billion in India, on a conservative basis – based on an estimated number of 135 domestic plants by 2030 deployment of 6.8 GW electrolyser capacity, producing and delivering at least 1-mmt green hydrogen to domestic offtake for industrial use.
It said that the 135 green hydrogen projects could vary in scale, ranging from 10 MW, 20 MW, 50 MW to 100 MW projects using different electrolyser technologies across different scales and end-use configurations together with BoP Equipment.
An optimistic view would add an additional 3.4 GW electrolyser capacity to add an additional USD 4.5 billion to the domestic market during the same period, added the report.
“India has the potential to become a regional supply hub for hydrogen production plants. This is a significant opportunity that will require large-scale manufacturing build out and investments, for electrolyser stack manufacturing and Balance of Plant equipment,” said Jill Evanko, chief executive and president, Chart Industries, and founding member, IH2A.
Evanko added that 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 USD 45 billion to USD 50 billion equipment market opportunity is achievable and could turn India into a global supply chain hub in the developing green hydrogen economy,” added Evanko.
According to Amrit Singh Deo, senior managing director, FTI Consulting, and IH2A Secretariat lead, the export market for Balance of Plant equipment is larger than the market for electrolyser stacks, and India should focus on being the preferred equipment supplier to all key hydrogen projects in the region over the next decade.
The regional hydrogen equipment exports potential is worth at least USD 34 billion with locally manufactured electrolysers and BoP equipment being exported to 540 projects across APAC, Middle East and Africa region.
The report said that specialist engineering design, EPC and service exports are worth at least USD 2 billion.
