Green Hydrogen price starting to come down in India, says Hygenco
In India, green hydrogen, produced using renewable energy, is now selling for less than gray hydrogen, which is made from natural gas. Hygenco Green Energies has secured 20-year contracts with green hydrogen priced below gray hydrogen, which typically costs $2.70 to $4 per kilogram. India aims to reduce green hydrogen prices to $1.50 and boost production to 5 million tons annually by 2030.
Hydrogen produced using renewable power is starting to sell for less than that made with natural gas in India, according to a producer there.
The country is reliant on imports to meet its demand for natural gas, and that expense is reflected in the price of so-called gray hydrogen. That may be tilting the balance in favour of the green version, which has typically been far costlier to produce.
“For some 20-year contracts, we have priced green hydrogen below gray hydrogen, and we are still making money on that,” Anshul Gupta, co-founder of Hygenco Green Energies Pvt Ltd., said in an interview. Gray hydrogen fluctuates between $2.70 and $4 a kilogram, making renewables an attractive alternative, he said.
Green hydrogen has been touted as a tool to cut carbon emissions in industries such as steelmaking and chemicals, as well as transportation. But it sells for about $3 to $7 a kilogram globally, with recent estimates suggesting costs could be even higher when taking storage and distribution into account.
India aims to lower prices to $1.50 and raise annual output to 5 million tons by 2030, from negligible volumes today. To achieve that, it has announced a slew of incentives and is considering cutting import duties on the machinery needed.
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