'Government support is critical for providing PLI in electrolyser manufacturing'

Dr RK Malhotra, former-chairman and R&D head at Indian Oil Corporation speaks with Amit Vijay M and discusses how India can amalgamate the various stages of green hydrogen.

- Amit Vijay M

TOUTED AS THE fuel of the future, hydrogen holds tremendous promise in terms of delivering cost-effective and sustainable energy solutions. While still in the nascent stage, its long-term viability will depend on piecing together several factors right from production to reaching the consumer. 

While India seeks to become the world's largest producer of Green hydrogen, what steps do you think the government and industry should take to reduce the cost from US$ 6-7 to US$ 1 -2?

The government further needs to support the industry by providing PLI benefits for electrolyser manufacturing, and R&D support for the improvement of technology and efficiency of electrolysers. In my view, despite the best efforts, the cost of green hydrogen may come down to around US$2.5 to US$3.0 per kg by 2030. Though many have announced a target of US$ 1 per kg, even the price of US$2 per kg will be quite attractive for the Hydrogen market to grow fast.

Electrolysers that have to be imported are in short supply and this aspect is expected to continue for the next two or three years. What is your view on the domestic manufacturing capabilities in the country?

Yes, globally sourcing electrolysers is a challenge at present, but several Indian companies both in the private and public sectors are scouting the technology and have plans to set up large manufacturing capacities in India. Though we have a few Indian manufacturers currently producing alkaline electrolysers, they cannot match the growing market demand in terms of size or numbers. By 2025, we may have Indian domestic manufacturing capability.