01-Utilization of Hydrogen by refineries in India
Uptake of Green Hydrogen by Indian refiners and push to demand creation by GoI beckons new opportunity segment
IOCL has already been producing 1.6 Barrels/day of green hydrogen in its Mathura refinery. Further, it is planning to come-up with a standalone green hydrogen production unit near Kochi International Airport. For demand creation we may see “Green H2 & Green NH3 purchase obligations” be notified shortly by GoI on policy front.
02-CBAM imposition to impact steel exports to Europe from India beginning 2026
CBAM from EU will push the decarbonization of steel industry in India through Green Hydrogen
The application of “Carbon Border Adjustment Mechanism (CBAM)” will translate into a 20%-35% on select imports including steel from January 01, 2026. This shall have a cascade impact upon increase in de-carbonization of steel in India and thus the uptake of green hydrogen shall gain momentum as end use.
03-Reduction in cost of Electrolyzer with membrane
Cost reduction potential for Electrolyzer with membrane will drive investments in electrolyzer manufacturing
The challenge which hydrogen industry faces up in the current pretext is to reduce the cost of green hydrogen production for which the cost of electrolyzer must be reduced. Along with PLI scheme already in place for electrolyzer manufacturing in India, the investments will peak in R&D to achieve cost reduction by a quantum of 60%-70% in electrolysers with membrane.
04-Demand creation will take center stage for policy front in hydrogen space
Demand creation for both blue and green hydrogen will take centre stage for policy makers in India
As already notified by GoI for creating demand for green hydrogen the green hydrogen obligation for refineries has been tagged at 10% and for fertilizer units the green ammonia obligation is at 15% which are the right index to create demand. Similar steps for demand creation in other segments would take centre stage for policy landscape around hydrogen with “Hydrogen & Ammonia Purchase Obligations (H&A PO)” potentially notified in the country.
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