Last Update
11 October 2023
Why unlocking clean hydrogen in coastal India will be crucial?
What are the key value chains that could lead clean hydrogen take up in coastal India?
Demand creation in the key sectors especially for the coastal states which have decent degree of relevant industry value chains which can support the faster adoption of clean hydrogen shall be the central focus for both Government and the industry participant in the country. The clean-hydrogen economy for the state of Gujarat would set the context right and in the correct direction as well. Once the model taste’s success in Gujarat, the states of Maharashtra, Tamil Nadu & Andhra Pradesh could easily follow in suit for early-stage adoption of clean hydrogen and at an enhanced pace.
Four demand areas which could turn the clean hydrogen demand in Gujarat that seems to have been prioritized are – Ammonia, petrochemicals and refining, power & utilities and finally in ground and marine transportation. These demand areas are a clear go for Gujarat given the state’s potential market size, strategic fit with state’s economy and endowment, demand signals and the likely hood of clean hydrogen being “in the investment” focus.
Mr. Ravi Shekhar, Director & Head, of Eninrac Consulting says “Demand creation in the key sectors especially for the coastal states which have decent degree of relevant industry value chains which can support the faster adoption of clean hydrogen shall be the central focus for both Government and the industry participant in the country. The clean-hydrogen economy for the state of Gujarat would set the context right and in the correct direction as well. Once the model taste’s success in Gujarat, the states of Maharashtra, Tamil Nadu & Andhra Pradesh could easily follow in suit for early-stage adoption of clean hydrogen and at an enhanced pace.
Four demand areas which could turn the clean hydrogen demand in Gujarat that seems to have been prioritized are – Ammonia, petrochemicals and refining, power & utilities and finally in ground and marine transportation. These demand areas are a clear go for Gujarat given the state’s potential market size, strategic fit with state’s economy and endowment, demand signals and the likely hood of clean hydrogen being “in the investment” focus. Also, a successful consortium of end-to-end players across the value chain, including suppliers, midstream players, off-takers, and other stake holders shall hold key for clean hydrogen faster adoption in coastal state of Gujarat.”
Why can Gujarat see many potential hydrogen clusters?
Following the intent of Government of Gujarat and prioritization of high-potential demand sectors, pilot projects and focus areas emerge in each with potential hydrogen clusters across state of Gujarat.
The demand centers would be the areas in the vicinity of the port areas for the state of Gujarat, which incidentally harbors many industries and SEZs around. All, the regions of the state shall see demand centers for clean hydrogen growing in these areas only. Close to ten leading big corporate houses have already pledged significant investments for development of green hydrogen in the state. Moreover, the availability of apt infrastructure and supply with convenient network of ports and highways.
Also, as Gujarat is home to major industries across different verticals which shall be an apt enabler for the state to have focused investments in RE domain which in turn shall ease the adaptability of green hydrogen in the state and shall allow other states in the country to follow the template.
What will fire up the hydrogen hub creation in Coastal India?
Now seems the apt time for the Indian industries to grab the clean hydrogen opportunity. It is vital that the industry players join hands and collaborate given the nascency of the hydrogen market in the country and to develop a robust ecosystem it shall be required.A consortium approach could help mitigate risk, accelerate growth, and create economies of scale for players aspiring to become leaders in the emerging clean hydrogen market. A combination of private sector investment and public sector funding – schemes such as PLI and incentives with subsidies could significantly influence the growth rate of adoption of clean hydrogen in the state. There are also several actions that individual companies can consider. Buyers could identify the demand, understand their supply options, clarify the offtake timeline, and analyze switching economics. Suppliers, on the other hand, could identify first movers and lock in offtake, while detailing commercial propositions and identifying project needs, such as site, infrastructure needs, capacity, design, and financing.
- Communications Team
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