Electrolyser prices key to achieving low green hydrogen costs: CareEdge
POWER & RENEWABLE ENERGY

Electrolyser prices key to achieving low green hydrogen costs: CareEdge

A significant reduction in electrolyser prices and improvements in their efficiency are crucial for lowering the levelised cost of green hydrogen (GH2) to $2.1 per kg by FY30, according to CareEdge Ratings. In a recent press release, the agency highlighted that India's green hydrogen momentum will be driven by falling renewable energy costs and its decarbonization goals. Currently, the levelised cost of GH2, which includes both capital and operational expenditures, is 1.75 times higher than grey hydrogen and 1.5 times higher than brown hydrogen, even with interstate transmission charge waivers for renewable power. CareEdge projects that a 35-40% decline in electrolyser costs and a 12-14% improvement in efficiency, combined with supportive policies, could bring GH2 costs down to competitive levels. This reduction, alongside lower renewable energy prices, is expected to give India a significant advantage in the global green hydrogen market. To produce one million metric tonnes (MMT) of GH2, an investment of Rs 2.4 trillion is required. The levelised cost of hydrogen (LCOH) was estimated at $3.74 per kg in CY23, despite transmission charge waivers. Maulesh Desai, Director at CareEdge Ratings, emphasised the importance of achieving cost parity with grey and brown hydrogen to enable large-scale GH2 adoption. The agency also noted that long-term offtake arrangements for GH2 remain a challenge for developers and lenders. Hardik Shah, Director, CareEdge, suggested incentivising downstream users to transition from alternatives to GH2. Refineries are expected to be early adopters, with a potential demand of 2.7-3.0 MMT of GH2 between FY27 and FY30. Green ammonia production could further drive demand, with an estimated 3.75-4.25 MMT of GH2 required during the same period, one-third of which may come from the non-urea sector. With the right mix of cost reductions, efficiency gains, and policy support, GH2 could become a cornerstone of India’s energy transition strategy. (ET)

A significant reduction in electrolyser prices and improvements in their efficiency are crucial for lowering the levelised cost of green hydrogen (GH2) to $2.1 per kg by FY30, according to CareEdge Ratings. In a recent press release, the agency highlighted that India's green hydrogen momentum will be driven by falling renewable energy costs and its decarbonization goals. Currently, the levelised cost of GH2, which includes both capital and operational expenditures, is 1.75 times higher than grey hydrogen and 1.5 times higher than brown hydrogen, even with interstate transmission charge waivers for renewable power. CareEdge projects that a 35-40% decline in electrolyser costs and a 12-14% improvement in efficiency, combined with supportive policies, could bring GH2 costs down to competitive levels. This reduction, alongside lower renewable energy prices, is expected to give India a significant advantage in the global green hydrogen market. To produce one million metric tonnes (MMT) of GH2, an investment of Rs 2.4 trillion is required. The levelised cost of hydrogen (LCOH) was estimated at $3.74 per kg in CY23, despite transmission charge waivers. Maulesh Desai, Director at CareEdge Ratings, emphasised the importance of achieving cost parity with grey and brown hydrogen to enable large-scale GH2 adoption. The agency also noted that long-term offtake arrangements for GH2 remain a challenge for developers and lenders. Hardik Shah, Director, CareEdge, suggested incentivising downstream users to transition from alternatives to GH2. Refineries are expected to be early adopters, with a potential demand of 2.7-3.0 MMT of GH2 between FY27 and FY30. Green ammonia production could further drive demand, with an estimated 3.75-4.25 MMT of GH2 required during the same period, one-third of which may come from the non-urea sector. With the right mix of cost reductions, efficiency gains, and policy support, GH2 could become a cornerstone of India’s energy transition strategy. (ET)

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?