+
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
Infrastructure Urban

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?