Ey Accelerating Green Hydrogen Economy

Accelerating Green
Hydrogen Economy
Prepared for Green New Energy
for a Net Zero India
June 2022
Enter
We acknowledge contributions from
Somesh Kumar Mohammad Saif Shuboday Ganta

Partner & Leader – Partner – Power & Utilities Vice President –
Power & Utilities EY India Power & Utilities
EY India EY India
Aaron Cherian Aditya Prakash Utkarsh Mathur

Senior Associate – Senior Associate – Associate – Power & Utilities
Power & Utilities Power & Utilities EY India
EY India EY India
Vikas Mehta Kartikeya Singh

Executive Director Director of Programmes
SED Fund SED Fund
2 Accelerating Green Hydrogen Economy

Foreword
The impacts of the COVID-19 pandemic and the ongoing conflict in Ukraine conglomerates both in public and private sectors have announced their
are a stark reminder of how India’s dependence on energy imports and ambitions, initiated pilot projects and strategic partnerships to boost the
other commodities linked to global supply chains can threaten its strategic green hydrogen supply chain.
interests. In this context, the emergence of green hydrogen as a promising
The recently announced ‘Green Hydrogen Policy’ is a timely intervention for
low carbon feedstock and energy carrier for industrial applications is a boon
the industry betting on the promise of green hydrogen/ammonia production
for India’s long-term energy security, sustainability and self-reliance.
at competitive prices. The policy will kick start India’s energy transition
Green hydrogen is likely to be at the heart of the global race to achieve efforts, particularly in the emission intensive industrial sectors such as oil
economy wide net zero emissions. The competitiveness of green hydrogen refineries, fertilizers, metals, chemicals, cement, etc.
derived commodities with traditional fossil fuels will determine the speed
In this report, EY has contextualized the role of green hydrogen for
and scale of the transition in future.
achieving India’s long-term energy security and environmental sustainability
India’s thriving renewable energy markets and enabling policy ecosystem objectives. The report presents key insights on demand outlook,
have helped the country retain its position among the top 3 markets globally applications, emerging technologies, techno-economics of the supply chain
in the EYs ‘Renewable Energy Country Attractiveness Index’ (RECAI). By (viz. production, storage and transportation/distribution) and evolving
leveraging low-cost intermittent renewable electricity produced at scale, policy ecosystem, particularly the role of state governments in driving both
India could become a global hub for production and export of green demand and competitiveness of green hydrogen. The report also presents a
hydrogen based commodities. pipeline of ‘shovel-ready’ investment opportunities at various stages of
development.
In August 2021, Hon’ble Prime Minister announced the launch of ‘National
Hydrogen Mission (NHM)’ to scale up green hydrogen production, utilization Mr. Somesh Kumar
and align India’s energy transition efforts with global best practices in Partner & Leader (Power & Utility),
technology, policy and regulation. Subsequently, India’s leading energy EY India

Acronyms
°C Degree Celsius GW Gigawatt Nm3 Newton Meter Cube
AEC Alkaline Electrolysis Cell H2 Hydrogen NTPC National Thermal Power Corporation Limited
BOO Build Own Operate HEV Hybrid Electric Vehicles O&M Operation and Maintenance
CAGR Compound Annual Growth Rate ICE Internal Combustion Engine OPEX Operating Expenditure
CAPEX Capital Expenditure IEA International Energy Agency PEM Proton Exchange Membrane
CEA Central Electricity Authority INR Indian Rupee PLI Production Linked Incentive
CII Confederation of Indian Industry IOCL Indian Oil Corporation Limited PNG Piped Natural Gas
CNG Compressed Natural Gas PPP Public Private Partnerships

ISTS Interstate transmission network
CO2 Carbon dioxide kg Kilogram PUS Public Sector Undertakings
CTU/STU Central/State Transmission Utility kW kilowatt PV Photovoltaic
CUF Capacity Utilization Factor kWh Kilo Watt Hour R&D Research and Development
DAM Day Ahead Market LCOH Levelized Cost of Hydrogen RE Renewable Energy
DISCOM Distribution Company LT/MTOA Long Term/Medium Term Open Access REOA Renewable Energy Open Access
DRI Direct Reduced Iron RPO Renewable Purchase Obligation

LULC Land Use – Land Cover
EAF Electric Arc Furnace RTC Round–the–clock
m3 Cubic meter
EV Electric Vehicle SECI Solar Energy Corporation of India Limited
MJ Mega Joule
EY Ernst & Young MNRE Ministry of New and Renewable Energy SEZ Special economic zone
FCEV Fuel Cell Electric Vehicle MoP Ministry of Power SLDC State Load Dispatch Centre
g Grams MPa Mega Pascal SMR Steam Methane Reforming
GH2 Green Hydrogen Mt Million tons SOEC Solid Oxide Electrolysis Cell
GHG Green House Gas Mtoe Million tons oil equivalent STOA Short Term Open Access
GIS Geographic Information System MW Megawatt USD United State Dollar
GST Goods and Services Tax NHM National Hydrogen Mission

CONTENT
Setting the context for advancing
Section 1 Executive summary Section 2
green hydrogen-based economy
Hydrogen properties, emerging Green hydrogen supply chain,

Section 3 Section 4
markets and demand outlook technologies and techno-economics
Evolving green hydrogen policy

International experience and
Section 5 ecosystem and shovel-ready Section 6
lessons for India
project pipeline
Section 7 Annexure Annexures

1 2 3 4 5 6 7
1 Executive summary

Executive Summary
The major consumption of green hydrogen is expected in the Hydrogen production cost by following methods
form of feed stock in various industrial processes and as an in the present scenario
energy carrier. In the year 2018-19, ~5.5 million tons of grey
hydrogen was consumed as a feedstock in fertilizer and crude Steam Methane Biomass Alkaline
Coal Gasification
oil refining industries. However, to meet the national and Reforming Gasification Electrolyzer
international clean energy transition, the adoption of green
hydrogen will play a major role in hard to abate sectors. The 1.3 INR/ MJ 2.0 INR/ MJ 2.2 INR/ MJ 3.6 INR/ MJ
industrial sectors that are likely to adopt green hydrogen and
drive demand in the long term are: Note: Cost of hydrogen is exclusive of storage and transportation
The levelized cost of green hydrogen estimated for a 1MW Alkaline electrolyzer
GH2 as Feed stock GH2 as energy carrier would be approximately INR 430/kg. Amongst this, LCOH ~42% would be
contributed for setting up a RTC (round-the-clock) RE power plant, 34% for
Ammonia production Transportation electrolyzer stack, 16% for compressor and 8% for pressure vessel/storage.
Iron and steel production Industrial heat
Crude oil refining Power generation
Methanol production Blending with natural gas
Hydrogen demand for ammonia production in fertilizer

industry would be ~ 4.5 and 7.5 million tons in the years 2030
and 2050, respectively. Similarly, demand for
desulphurization in crude oil refining industry would be ~3.2
and 5 Million tons in the years 2030 and 2050, respectively.
The government has set an ambitious green hydrogen
production target of ~5 million tonnes by 2030 under the
green hydrogen mission. To achieve this production target,
India will need the support of ~115 GW of round-the-clock
renewable power generation capacity and ~50 billion liters of
fresh water supply. The private sector industries have shown
keen interest in green hydrogen market and with the
economies of scale the cost of production is believed to
reduce.

1 2 3 4 5 6 7
Recommendations Project Pipeline
1 Reducing the cost of renewable power generation and supply Announced Green Hydrogen projects in pipeline
for GH2 production
► Waiver of Intra-state transmission charges for GH2 20 19
production 18
► Waivers, clarity and certainty of open access charges for 16
Number of projects
GH2 production 14
12
► Allow banking of surplus energy in the production of GH2
10
► Fungibility of green hydrogen and renewable purchase 8 6
obligations 6 5
4
2 Improve ease of doing renewable energy open access 2 1
(REOA) transactions 0
2021 2022
3 GIS mapping and identification of GH2 clusters for development Year of announcement
Hydrogen Production Electrolyzer Manufacturing
4 Establish state level mission for advancing GH2 economy,

formulate and adopt GH2 production targets separately for
industries, transportation and other sectors of the economy Green hydrogen pipeline capacity
10
5 Single window portal for all statutory clearances, permissions 7.77
Project capacity
8
required for manufacture, transportation, storage and
distribution of green hydrogen / ammonia 6
4
4
6 Production linked incentives and fiscal benefits for high
efficiency and durable electrolyzer systems 2
0
7 Enhance public funding support towards R&D programs
Hydrogen production electrolyzer capacity (GW)
calling for demonstration of projects that support the
competitiveness of GH2 supply chain and end-use Electrolyzer manufacturing capacity (GW/year)
Source: EY Analysis based on JMK Research

1 2 3 4 5 6 7
2 Setting the context for advancing
green hydrogen economy

Long-term energy security, self–reliance and environmental sustainability are the key
drivers for advancing green hydrogen (GH2) economy
As per the IEA’s ‘India Energy Change in primary energy

Outlook 2021’, the primary Primary Energy Demand in India (disaggregated)
demand 2000–19
energy mix is currently dominated 100% 929 1000
by coal and oil contributing ~44% 880
and ~25% respectively in 2020. 80% 800
150 700
Modern renewables contribute 60% 600
Mtoe
only ~3% of all India primary
441
energy mix in the present 40% 400
scenario. The total primary
20% 200
energy demand has grown at ~4%
(CAGR) in the last two decades. 100 0% 0
The industrial sector witnessed 2000 2010 2019Oil 2020
Coal
the highest incremental primary Natural Gas Traditional Biomass
Mtoe
energy demand in the last two Modern Renewables Transformation losses

decades. Coal is the mainstay for Total Energy Demand (Mtoe)
industrial energy use. As per the
‘India Energy Statistics 2021’, net 50
energy import dependency is a
whopping 42%. Further, India’s Sector wise CO2 emissions
CO2 emissions are increasing 100% 7%
rapidly from 0.98 billion tons in
33% 30%
the year 2000 to ~2.5 billion tons 80% 43%
0
in 2019 as per IEA 2021.
Transport
Buildings
Agriculture
Industry
60% 18%
Mt CO2
In this context, long-term energy 27% 100%
93% 15%
security and environmental 40%
sustainability naturally become 57%
the key drivers for advancing GH2 20% 40% 37%
economy. Green hydrogen will Transformation losses
become one of the principal 0%
Bioenergy
pathways to decarbonize the Power Industry Transport Buildings Other energy
industrial and transportation Electricity & agriculture
sectors of the economy, which Oil Coal Plants Iron & Steel Cement Trucks 2-3 wheelers
cannot be addressed by direct Coal Cars Residential Services Others
electrification technologies alone.
*Note that ‘Modern Renewables’ depicted in the charts above includes all uses of renewable energy (hydro, nuclear, solar, wind, modern biofuels etc.)
with the exception of traditional use of solid biomass. Source: IEA, India Energy Outlook, 2021

1 2 3 4 5 6 7
In a net-zero economy, GH2 will be the dominant feedstock and energy carrier for
industrial applications, where direct electrification technologies have limitations
GH2 is a critical piece of energy transition to achieve economy wide net-zero emissions. As industrial feedstock / process gas, GH2 can
substitute grey H2 (derived from fossil fuels) used in oil refineries, fertilizer plants, methanol producing chemical plants and treatment of
metals. As energy carrier / vector, GH2 can be used for blending with piped natural gas (PNG) used in domestic, commercial and industrial
applications, electrification of heavy-duty long-haul transportation such as trucking and maritime shipping through H2 fuel cells, energy storage
coupling with renewable rich power systems, etc.
Green hydrogen as ‘Feedstock’ Green hydrogen as ‘Energy carrier’
Crude oil refining Fertilizers Industrial process heat Blending with

piped natural gas
Metals Bulk chemicals Transportation Power generation

& storage
Source: EY Analysis

1 2 3 4 5 6 7
3 Hydrogen properties, emerging
markets and demand outlook

Hydrogen production nomenclature
Grey hydrogen Turquoise Green hydrogen Yellow hydrogen

hydrogen
Electricity generation
Natural from wind and solar Hydrogen derived from Grid
Hydrogen in fossil fuels gas energy organic matter electricity
Electrolys
Partial Gasificati is Microbial Biomass Other Nuclear
(ALK/PEM/SOE
Oxidation on SMR ATR Pyrolysis C) Photolysis production gasification sources power
Carbon Capture Utilization and storage (CCUS)
When CO2 is
captured, grey
hydrogen becomes
blue. Industry Electrolys
Power process Industry is
generation Transportation heat Blending feedstock (ALK/PEM/SOE
C)

1 2 3 4 5 6 7
Physical properties of hydrogen warrant additional infrastructure for storage,
handling and transportation
► Hydrogen is the simplest substance (one proton Physical properties of H2 Power and water intake for H2O
and one electron), non-toxic, colorless,
electrolysis
odorless, or tasteless.
Property Unit Value
► At ambient conditions (temperature and Item Unit Value
pressure of 20°C and 1 bar respectively), the Molecular weight g/mol 2.016
hydrogen molecule is extremely small and
about 14 times lighter than air at 2.016 g/mol
Lower heating value Electrical kWh/kg of H2
and has a high diffusion rate (0.61 cm2/s) and MJ/kg 120 50 – 55
(heat of combustion) energy input production
buoyancy.
► The flashpoint of hydrogen is −231°C, which is Boiling point
the lowest compared to other fuels. As the (Liquefaction Degree C - 253
flashpoint indicates easy fuel combustion, the Power intake
temperature) kW/Nm3 of H2
very low flashpoint of hydrogen is (Instantaneou 4.5
production
advantageous because of the possibility of a s load)
Melting point
simpler system to ignite and combust hydrogen.
(Solidification Degree C - 259
► At ambient pressure (1 bar), hydrogen liquifies temperature)
at a temperature of −253°C, leading to a Water intake Litres / m3 0.9
significant increase in its density. Density (@ STP) Kg/m3 0.084 for H2
► When hydrogen burns, the only combustion production
Litres / kg 10
product is water vapor. Clean hydrogen/air Density of liquid
mixtures burn with a non-luminous, almost Kg/m3 71
hydrogen at −253°C
invisible, pale blue hot flame, liberating the Water quality
chemically bound energy as heat (gross heat of for H2
Density of solid µS/cm <5
combustion). Kg/m3 858 production
hydrogen at −259°C
► When comparing all safety related properties
for hydrogen and methane in gaseous form, it is Source: https://h2tools.org/hyarc ; Aziz, M. Liquid Hydrogen: A Review Source: EY Analysis
assessed that the properties of hydrogen result on Liquefaction, Storage, Transportation, and Safety. Energies 2021,
14, 5917. https://doi.org/10.3390/en14185917
in a higher risk of explosion. The most
important reasons are hydrogen’s larger
flammability range, which means that a larger
part of the gas can be ignited; hydrogen’s lower
ignition energy (for the high concentrations).
This warrants additional infrastructure for safe
handling and operations.

1 2 3 4 5 6 7
~5.5 million tons of grey hydrogen was consumed in 2018-19 mostly as feedstock for
fertilizer and crude oil refining industries
National Hydrogen Mission targets production of five million Hydrogen demand for ammonia production in Fertilizer
tonnes of Green hydrogen by 2030: The first leg of green industry (Million Tons)
hydrogen policy announcements aim to reduce the cost of green 7.5
hydrogen production from renewable energy sources and
position India a major export hub for green hydrogen and 6
ammonia commodities.
4.5
3
Hydrogen consumption in
Production
Industrial sector 2018-19 (in thousand
method
Metric Tons)
2020 2030 2040 2050
Crude Oil Refining 2,600.00 Source: Hall, W., Spencer, T., Renjith, G., and Dayal, S. 2020. The Potential Role of Hydrogen in India: A
pathway for scaling-up low carbon hydrogen across the economy. TERI
Ammonia production Hydrocarbon

2,850.00
in fertilizer industry reforming
Hydrogen demand for desulphurization in Crude oil
Methanol production 51.67 refining industry (Million Tons)
5
Chlor-Alkali Industry 34.37 4.4
3.2
Chemical Industry 29.25 Electrolysis 2.6
Other industries 9.51
2020 2030 2040 2050

Total 5,575.00
Source: Hall, W., Spencer, T., Renjith, G., and Dayal, S. 2020. The Potential Role of Hydrogen in India: A
pathway for scaling-up low carbon hydrogen across the economy. TERI
Source: Compiled by Mr. Vivek Jha, Indo-German Energy Forum 2021

1 2 3 4 5 6 7
Green hydrogen applications, challenges and emerging markets in India
Use case Challenges and drivers Emerging market description
Price parity between green and grey hydrogen ► Ammonia production in fertilizer industry
production will determine the speed and scale of
Industrial feedstock ► Desulphurization in crude oil refineries
transition;
H2 DRI production will result in 0% CDRI increasing ► Hydrogen based Direct Reduced Iron (DRI) –
the cost of EAF steel production Electric Arc Furnace (EAF) steelmaking
► Methanol production
Direct electrification will be competitive wherever feasible; ► Blending in piped natural gas grids (~15%)
Significant investment in H2 transportation and
Process heating ► Industrial boilers, furnaces and heating
distribution infrastructure required
applications, domestic cooking and other
Hydrogen embrittlement is a major technical challenge for
commercial end uses
the durability of blending in existing pipelines
Technical and regulatory barriers need to be addressed
with the adoption of robust standards
Significant investment in H2 storage, handling and ► Long-haul heavy-duty trucking

bunkering / refueling infrastructure required
Transportation ► Maritime shipping for freight transportation
Competition with battery electric vehicles will
determine speed and scale of transition ► High speed passenger ferries, boats and
cruising for tourism industry
Significant capital expenditure and low round-trip ► Long-duration (>20 hours) energy storage
efficiency (~30–40%) lowers the cost- applications for high shares of renewable
Power generation
competitiveness storage applications energy integration in power grids
and energy storage
Batteries are already competitive for short duration
► Power generation for peak demand supply
storage applications
Source: EY Analysis

1 2 3 4 5 6 7
Industrial sectors will drive the demand for green hydrogen in the long term
► The following industrial sectors are likely to adopt green

30 hydrogen as feedstock and drive demand in the long term.
► Ammonia production
► Iron and steel production
25 ► Crude oil refining
► Methanol production
► The demand for green hydrogen as an energy carrier for
20 process heating applications will depend on the economics of
Hydrogen Demand (Mt)
appropriate blending concentrations in existing pipelines and

creation of dedicated infrastructure in the long term. Any
introduction of a hydrogen blend concentration in existing gas
15 grids would require extensive study, testing, and
modifications to pipeline integrity monitoring and
maintenance practices. Additional cost incurred must be
weighed against the benefit of providing a more sustainable
10 and affordable energy carrier to end-users. The benefits of
blending, extent of the natural gas pipeline network, impact
on end-use systems, safety, material durability and integrity
management, leakages and downstream extraction need to be
5 studied thoroughly for before taking decisions.
► Transport sector demand for green hydrogen will be limited to
long-haul heavy-duty trucking, maritime shipping and high-
speed long-haul passenger ferries, boats and cruising
0 applications. The competitiveness of hydrogen fuel-cell
2020 2025 2030 2035 2040 2045 2050 technologies with evolving battery powertrains will be a key
determinant of this demand.
Ammonia-Fossil Methanol-Fossil Refining-Fossil ► Demand for power generation will be limited to specific long
Ammonia-Green Refining-Green Methanol-Green duration renewable energy storage applications
Steel-Green Transport Power
Source: Hall, W., Spencer, T., Renjith, G., and Dayal, S. 2020. The Potential Role of Hydrogen in India: A pathway for
scaling-up low carbon hydrogen across the economy. TERI

1 2 3 4 5 6 7
4 Green hydrogen supply chain,
technologies and techno-economics

Overview of hydrogen value chain and technologies
Hydrogen supply chain
Transportation End use

Generation Storage Retail
and distribution
Distribution logistic Industrial

Grey Steam methane Membrane
Liquefaction and private storage Feedstock
hydrogen reforming (SMR) transportation
(secondary) (ammonia, methanol)
Pipeline Hydrogen filling Industrial

Blue SMR combined with
Compression distribution stations energy supply
hydrogen carbon capture (pure and blended) (compressed and liquid) (heat generation)
Electrolysis from
Road and rail Transportation
renewable Methanation
transportation (private and public)
electricity
Biomass Power generation

Green
gasification and Ammonia and storage
hydrogen
reforming (fuel cells, mini-CHP)
Biogenic /
Waste treatment
*Note: Only key elements of the value chain are shown

Source: EY Analysis

1 2 3 4 5 6 7
India will need ~115 GW of renewable power generation capacity and ~50 billion liters of
fresh water for achieving the production target of ~5 million tons of green hydrogen by 2030
In August 2021, India announced the launch of ‘National Hydrogen Mission’ to scale up green hydrogen production and align India’s energy transition
efforts with global best practices in technology, policy and regulation. The Mission aims to support the government’s efforts in meeting climate targets
and making India a green hydrogen hub. The target for green hydrogen production is ~5 million tonnes by 2030 under this mission. In Feb 2022, the
Ministry of Power (MoP), the Government of India notified the ‘Green Hydrogen Policy’ as the first leg of policy instruments to further bolster efforts in
this direction.
Most efficient alkaline electrolyzers today consume ~50 kWh of electricity and 10 liters of fresh water to produce 1 kg of hydrogen. Therefore, if all the
~5 million tons of green hydrogen production target by 2030 were to be achieved via alkaline electrolysis, India would require ~50 billion litres of fresh
water and 250 billion kWh of electricity supply from renewable sources of energy, primarily wind and solar PV. This translates to ~115 GW of installed
renewable power generation capacity @ 25% CUF (for hybrid round-the -clock supply). To get a sense of this scale, the current all India installed capacity
of renewable power generation is ~106 GW as of Feb 2022 (Source: CEA, Installed capacity report, 2022, https://cea.nic.in/wp-
content/uploads/installed/2022/02/installed_capacity.pdf).
~115 GW
~50 billion litres ~5 million
(installed capacity) of fresh water tons of H2
by 2030
Electricity generation from wind Electrolysis

and solar energy (ALK/PEM/SOEC)
Source: EY Analysis
India’s green hydrogen market is currently in the nascent stages of development. The supply chain for green hydrogen needs sufficient economies of
scale and innovation to achieve competitiveness through 2030. More importantly, robust and predictable demand for green hydrogen through 2030 is
fundamental for accelerating investments to expand the supply chain. By leveraging low–cost domestic renewable electricity produced at scale, India
could become a regional hub for exporting green hydrogen at competitive prices and command a reasonable share in the global hydrogen demand of 200
million tonnes (Source: IEA, Global Hydrogen Review, 2021) by 2030.
The supply chain of GH2 is complex like any other fossil fuel commodity and includes production from renewable energy sources, storage,
transportation, distribution, and handling. Beyond this, the physical properties of hydrogen warrants additional infrastructure for safe handling and
operations. Many potential end–use applications may need technology and infrastructure to support energy transformations such as H2 to electricity and
vice versa, H2 to ammonia, H2 to methanol etc. GH2 production, storage, and supply needs to meet the purity, pressure, and volume requirements of
specific industries and applications.

1 2 3 4 5 6 7
Electrolytic production of green hydrogen: India will need ~50 GW of electrolyzer capacity
(installed) to achieve 5 million tons of production target for green hydrogen by 2030

and distribution
Characteristic AEC PEMEC SOEC
Aqueous
Polymer Yttria stabilised
Electrolyte potassium
membrane Zirconia
hydroxide
Ni, Ni-Mo
Cathode Pt, Pt-Pd Ni/YSZ
alloys
Ni, Ni-Co
Anode RuO2, IrO2 LSM/YSZ
alloys
Temperature 60-80 °C 50-80 °C 650-1000 °C

Green hydrogen
production methods Operating
<30 bar <200 bar <25 bar
pressure
► Alkaline Present electrolyzer ~5 MW(largest by 4.5-6.6
electrolysis (AEC) System energy 4.2-6.6 kWh/m3 >4.7
capacity NTPC) kWh/m3
► Proton exchange Gas purity >99.5% >99.9% >99.9%
membrane (PEMEC)
~50 GW for System response Seconds Milli seconds Seconds
► Solid oxide electrolysis Electrolyzer
producing ~5 Million
cell (SOEC) capacity outlook in
tons of green Stack lifetime 60-90k hours 20-60k hours >10k hours
India by 2030
► Biomass gasification hydrogen
Maturity Mature Commercial Demo
and reforming
Capital cost 0.75 - 1.5
1 - 2 lakhs >2 lakhs
INR/kWe lakhs
Source: O. Schmidt, et al., Future cost and performance of
water electrolysis, Hydrogen Energy 2017

1 2 3 4 5 6 7
Geological storage of hydrogen could emerge as the scalable and affordable
alternative in the long term

and distribution
Hydrogen Storage Insights

Compressed gas (pressure higher than 30 MPa)
Liquid (temperature -253°C at 1 atm) ► Hydrogen is usually compressed to pressures ranging between
Cryo-compressed (e.g., pressure 35 MPa at -253 °C)
100 to 825 bars for large-scale storage, transport and end-use
applications.
Slush (combination of liquid and solid hydrogen at a triple point)
► In physical storage systems, advanced materials for pressure
Physical storage vessels are required, such as carbon fiber and glass fiber-
reinforced plastics to achieve higher density. Hydrogen
Metal Hydrides (e.g., MgH2, AlH3) embrittlement is a technical challenge for metallic components
Complex Hydrides (e.g., NaAlH4, Mg(AlH4) 2) used in physical storage.
Chemical hydrides (e.g.,NH3BH3)
Hydrogen storage
► Geological storage of hydrogen could likely emerge as scalable
Interstitial metal hydrides (e.g., La, Pd, and affordable alternative in the long term. Salt and rock
LaNi6H6, FeTiH2)
caverns, depleted oil and gas reservoirs, aquifers are the
possible options for geological storage.
► Methane and ammonia synthesized from green hydrogen can be

Chemical storage Hydrides effective chemical storage techniques for specific applications.
Adsorption (e.g., MOFs, CNTs) However, the Haber-Bosch process widely adopted for making
Reformed organic fuels (e.g., methanol, ammonia, gasoline) ammonia from hydrogen and the Sabatier’s reaction to
methanation are both energy and GHG intensive, require high
Hydrolysis (e.g., NaBH4)
temperatures in the presence of catalysts (e.g., Nickel).
Source: Aziz, M. Liquid Hydrogen: A Review on Liquefaction, Storage, Transportation, and Safety. Energies 2021

1 2 3 4 5 6 7
Hydrogen embrittlement is the biggest technical challenge for storage and transportation

and distribution
Hydrogen Transportation Ecosystem

Hydrogen Storage Insights
Modes of transport Relevance Challenges Economics
Trucks, trailers and Suitable for lower Pressurized tube trailers ~ 0.5 USD/kg of gaseous ► In the present scenario, most of the hydrogen is produced
tankers volumes and short operate at pressures 200 - H2 for every 50 kms and consumed at the same location.
(compressed gas distances in 500 bar; distance
tube trailers and compressed gas, liquid Cooling, refrigeration / ► Hydrogen is generally transported by
liquid hydrogen (cryogenic) and liquefaction and trucks/trailers/tankers in pressurized gas containers and
trucks) chemical forms regasification is energy in cryogenic liquid tanks to some extent. Transporting
intensive and vulnerable hydrogen in compressed gas tube trailers will be the cost-
for losses (25-35%) effective alternative for short distances.
Pipelines Suitable for large Hydrogen embrittlement is ~ 0.3 – 1 USD / kg H2 for
(Retrofitting volumes and long a challenge for blending every 500 kms distance; ► Shipping is likely to remain a high-cost option even in the
existing pipelines distances in hydrogen (up to 15%) in Retrofitting existing long term due to costs of liquefaction, refrigeration, and
Or creating compressed gaseous existing natural gas pipelines is cheaper subject regasification
dedicated form pipelines; High capital costs to overcoming hydrogen
infrastructure) for creating dedicated embrittlement challenges ► There is ~5000 km of dedicated hydrogen pipeline network
hydrogen pipeline around the world today. This network is operated by large
infrastructure industrial producers to deliver hydrogen to bulk chemicals
Shipping Suitable for large Cooling, refrigeration / > 2 USD / kg of liquid H2
and refinery facilities.
volumes and long liquefaction and for every 3000 kms
distances in liquid regasification is energy distance; ► Hydrogen embrittlement is the biggest technical challenge
cryogenic form or intensive and vulnerable ~ 2 USD / kg ammonia for for retrofitting existing pipelines for blending applications
other derivatives such for losses (25-35%) every 3000 km distance;
as ammonia
Source: EY Analysis; CEEW, 2020; https://cef.ceew.in/masterclass/analysis/catalysing-green-hydrogen-growth-in-india; TERI 2020

1 2 3 4 5 6 7
Tipping points for cost competitiveness of green hydrogen
► Grey H2 production costs (steam methane

Cost for thermal fuel commodities in India reforming) vary from 75-150 INR/kg depending on
4.0 4 the price of natural gas.
3.6 ► The domestic retail CNG / PNG prices vary from
3.5 3.5 approx. 40-90 INR/kg, which translates to approx.
1-2 INR/MJ of energy considering the lower
3.0 3 heating value of this fossil fuel commodity.
► Achieving parity with these commodity prices will
2.5 2.5 determine the speed and scale of GH2 adoption.
Cost (INR/ MJ)
2.2 This requires boosting demand for GH2 in a

2.0 2
2.0 2 manner that helps achieve economies of scale
across the supply chain, indigenization of supply
1.5 1.5 chain and technology improvement to enhance
1.3
efficiencies of GH2 production and
1.0 0.8 1 transformations with earth abundant raw
materials. R&D investments and programs are
0.3 crucial for technology indigenization across the
0.5 0.5
supply chain.
0.0 0 ► Government intervention and pilot projects must
also address and demonstrate the cost
Steam Methane Reforming
Biomass Gasification
Retail CNG/PNG
LNG
Coal Gasification
Alkaline Electrolyzer
Non-Coking coal
effectiveness of GH2 storage and delivery
systems.
► The cost of utility scale intermittent renewable
power generation has been declining over the last
decade, settling between INR 2–3.0 / kWh in the
present scenario. This cost does NOT include
transmission, wheeling, banking and other charges
specific to local state regulations. Moreover, this
declining trend is expected to reverse in the
immediate future driven by a global spike in
Hydrogen Production Methods . . . commodity prices, import duties and domestic
policy commitments to boost adoption of locally
manufactured PV cells, modules, etc.
Source: DST 2020; IEA 2021; Indraprastha gas limited; National coal index (December 2021)
Note: Cost of hydrogen is exclusive of storage and transportation

1 2 3 4 5 6 7
Techno-economics of green hydrogen production and storage in India
There are multiple factors that drive the techno-

economics of the green hydrogen supply chain.
16%*
► Renewable energy resource availability and economics of
round-the-clock power supply: This includes geographical
8%* location and proximity of RE resources, CAPEX and OPEX of
round the clock power supply designed for optimum CUF (>70%)
34%* w.r.t electrolyzer stack load, interstate / intra-state
transmission/wheeling charges, banking and other grid support
charges if any. This component typically accounts for 40-50% in
the overall LCOH. Round-the -clock systems are typically
oversized (2-3 times demand) and therefore results in surplus /
excess generation in the range of 10-20%. Mechanisms to buy
back or sell curtailed power in open markets can help reduce
costs.
► Electrolyzer system efficiency, stack durability and economics:
42%* This includes CAPEX and OPEX of electrolyzer stack, water
supply, treatment and balance of system. Energy consumption
per unit of H2 production (efficiency) at different load factors,
stack durability and response for intermittent supply also affect
the economics of production operations. This component
typically accounts for 30-40% in the overall LCOH.
► Energy efficiency and economics of compression and storage:
This includes CAPEX and OPEX for compression system, energy
efficiency and consumption, pressure vessel, type of pressure
vessel, end-use pressure requirement, days of autonomy for
sizing pressure vessel, etc. This component typically accounts for
up to 25% of overall LCOH.
► Demand profile of end-use application: This includes the
pressure requirement for hydrogen end-use application, hourly
and seasonal variations in demand profile and inherent flexibility
of end-use application to minimize curtailment.
► Geospatial characteristics of renewable power generation, GH2
production, and end-use: This determines the need for additional
storage and transportation / distribution infrastructure.
Source: EY analysis for a small scale 1MW equivalent electrolyzer system
*Indicate the % share of overall cost of production and storage

1 2 3 4 5 6 7
Cluster-based models of GH2 production close to demand centers can help optimize
supply chain costs
Geospatial maps of green hydrogen demand centers (e.g., crude oil refineries) with annual average solar insolation
(MJ/m2) and wind power potential (W/m2)
LEGEND
Oil refineries
Hydro-electric
power plant dams

1 2 3 4 5 6 7
5 Evolving the ecosystem of green hydrogen
policy and shovel-ready project pipeline

Green hydrogen policy enablers:
Reduce 45%
50% of electrical Achieve net–
500 GW of Reduce total projected carbon
Panchamrit of India’s climate actions energy capacity from zero
non–fossil energy carbon emission by one intensity of
announced during COP26 Glasgow renewable energy emissions by
capacity by 2030 billion tonnes by 2030 economy by
sources by 2030 2070
2030
Definition of ‘Green hydrogen /

Produced by way of electrolysis of water using renewable energy including production from biomass
ammonia’
Waiver of inter-state transmission Granted for a period of 25 years for projects commissioned before 30 June 2025
(ISTS) charges
Open access for sourcing renewable energy will be granted

Open access charges as per existing
Grant of Open Access within 15 days of receipt of application complete in all
rules
respects
Banking permitted for a period of 30 Banking charges fixed by state commissions not more
Banking of surplus renewable energy days for renewable energy used in the than cost differential between average tariff of
production of green hydrogen/ammonia procurement and market clearing price in DAM
Connectivity granted on priority under the Electricity (Transmission System Planning, Development
Grant of ISTS connectivity
and Recovery of Inter State Transmission Charges) Rules 2021
Land acquisition for Allotment of land in renewable energy parks for green hydrogen/ammonia production
green hydrogen production
Source: Ministry of Power, Government of India, 2022

1 2 3 4 5 6 7
Green hydrogen policy enablers (cont.):
Manufacturing zones proposed to be set up for cluster-based development of green hydrogen

Manufacturing zones supply chain
Manufacturers of green hydrogen / ammonia allowed to set up bunkers near ports for storage and
Bunkering and storage exports by shipping. Land to be provided for storage by port authorities at applicable charges.
Renewable energy consumed for production of green hydrogen / ammonia shall count towards RPO
RPO compliance compliance of the end-user entity. Renewable energy consumed beyond obligation of end-user shall
be counted towards RPO compliance of DISCOM in whose area the project is located.
MNRE will establish a single window portal for all statutory clearances, permissions required for
Single window portal manufacture, transportation, storage and distribution of green hydrogen / ammonia preferably within
30 days of data of application
MNRE may aggregate demand from different sectors and have consolidated bids for procurement of
Demand aggregation green hydrogen / ammonia through designated implementing agencies
Source: Ministry of Power, Government of India, 2022

1 2 3 4 5 6 7
Green Hydrogen Policy notified in Feb 2022 is a timely intervention for the industry betting
on the promise of establishing competitive supply chains
India’s ‘Green Hydrogen Policy’ will kick start energy transition efforts, Similarly, the effectiveness of few other provisions in the
particularly in the emission intensive industrial sectors. green hydrogen policy such as granting open access for
renewable energy sourced within 15 days and land allocation
One of the key highlights of this policy, the waiver of inter-state transmission
in renewable energy parks will depend on the efforts from
charges for green hydrogen production plants commissioned up to June 2025
state governments towards proper adoption and enforcement.
sourcing electricity produced from renewable energy sources was already
existing from the order dated 23 November 2021. However, this order had
By leveraging low-cost renewable electricity produced at
provisioned waiver for first 8 years of operations only. The ‘Green Hydrogen
scale, India could become a regional hub for exporting green
Policy’ has extended the waiver for 25 years of plant operations, which is a
hydrogen at competitive prices and command a reasonable
welcome step in ensuring long-term cost reduction of green hydrogen
share in the global hydrogen demand of 200 million tonnes
production for the industry. One must note that green hydrogen production
(Source: IEA) by 2030. In this context, India’s green hydrogen
units must be connected with ISTS network at the point of GH2 production to
policy must further evolve to boost demand for green
fully realize the benefits of this waiver. Otherwise, respective state transmission
hydrogen, particularly in those markets where grey hydrogen
charges may still apply. Therefore, states which extend similar waivers for
is currently produced and used as feedstock or process gas.
intra-state transmission could become preferred locations for green
Green hydrogen blending with piped natural gas is another
hydrogen production units.
major market for boosting demand. The policy must focus on
The policy also provides 30 days banking facility and limits the applicable boosting R&D investment with public-private partnerships
banking charges for the renewable energy used in the production of green (PPP) and grand challenges to demonstrate efficient and cost
hydrogen. This is also a significant step, especially when the restrictions on effective GH2 electrolyzers, storage and delivery solutions
banking provisions for renewable energy are increasing in many states. Banking using earth abundant electrocatalysts and materials. A
is permissible only for intra-state transactions and therefore, the industry will concrete roadmap towards developing testing facilities and
benefit from this provision only when the state electricity regulatory certification mechanisms relying on globally harmonized
commissions amend their banking regulations accordingly. Renewable energy standards and regulations for Green hydrogen production,
systems designed for green hydrogen production are typically oversized to storage and delivery is needed. Viability gap funding could
account for variability. Banking allows green hydrogen producers to supply focus on projects where green hydrogen could act as alternate
excess renewable electricity to the grid, with the option of drawing back the energy carrier for enabling low carbon steel, cement, trucking
same amount of power within a certain period and against the banking charges and maritime shipping. The policy must also endeavor towards
specified by State Electricity Regulatory Commission. Until recently, many creating world class talent in the value chain of green
states offered annual banking provisions but have now moved to a monthly hydrogen by way of introducing dedicated academic
banking period, and in some cases have completely withdrawn banking facilities programs/ degrees and establishment of national research
for renewable energy projects. Therefore, the industry will watch closely on institutes. This is important to kick start the indigenization of
how the states which have already restricted banking provisions will adopt the technology development and support the industry ambitions
30 days banking facility, and the formula specified for limiting banking charges towards R&D, product development and services in the entire
specified in the green hydrogen policy. value chain.

1 2 3 4 5 6 7
Shovel-ready project pipeline to scale up adoption of GH2
Many leading Indian public sector undertakings (PUS) and private corporations operating
in the fossil fuel industry (e.g., oil and gas, thermal power generation) have announced Announced Green Hydrogen projects in pipeline
pilot projects, including their long term ambitions and goals in the development of green
hydrogen production, storage, transportation and end use ecosystem. In the public 20 19
sector, IOCL has invited expressions of interest from global players for setting up green 18
hydrogen production units at Mathura and Panipat Refineries with installed capacities of 16
Number of projects
5,000 Mt per annum and 2,000 Mt per annum respectively on Build Own Operate (BOO) 14
basis. GAIL has launched a global tender to procure 10–megawatt electrolyzer capable of 12
producing 4.5 tonnes of green hydrogen per day. The Solar Energy Corporation of India 10
(SECI) has invited tenders to set up a green hydrogen pilot plant. Most importantly, a 10 8 6
per cent purchase obligation for green hydrogen in refineries and fertilizer plants is 6 5
awaiting Cabinet approval. NTPC is currently exploring a pilot project for standalone 4
hydrogen fuel cell based power–backup solution replacing the diesel power generator. 2 1
The hydrogen will be produced with an in–house electrolyzer in its Noida and 0
Vishakhapatnam premises. NTPC is also working on a hydrogen fueling station in Leh for 2021 2022
green hydrogen mobility. The project shall have two electrolyzer with a daily production
capacity of ~80 kg/day power with renewable energy of 6500kWh/day. A pressure vessel Year of announcement
to store 100 kg of compressed fuel at 450–500 bar pressure. NTPC will be pushing the Hydrogen Production Electrolyzer Manufacturing
hydrogen mobility program with 5 hydrogen fueled buses in the region.
In the private sector space, Reliance Industries, as part of its commitment to invest USD
10 billion (INR 750 billion) in new energy businesses, announced plans to build a giga–
Green hydrogen pipeline capacity
factory to manufacture electrolyzers. Adani group has plans to invest $70 billion in this
decade to become the world's largest renewable energy company and produce the 10
cheapest hydrogen on the Earth. These measures and proposed projects would pave the 7.77
8
Project capacity
way for a robust green hydrogen market growth in this decade.
EY has identified ~41 shovel-ready projects in the green hydrogen supply chain, out of 6
which 31 are commercial projects and 10 are R&D projects funded by the Department of 4
Science & Technology (GoI). The projects database comprises green hydrogen 4
production, electrolyzer manufacturing, hydrogen retail and R&D projects. These projects
2
are under permitting or announced stage from year 2021 till May 2022. In the year
2022, only 7 projects are announced as compared to ~24 commercial projects in the year
0
2021. Currently, not all the projects have announced the project capacity, however,
project capacity is assessed from the announcements with declared capacity. The green Hydrogen production electrolyzer capacity (GW)
hydrogen production pipeline project plans to install ~7.77 GW electrolyzer plants, while Electrolyzer manufacturing capacity (GW/year)
the cumulative electrolyzer manufacturing project capacity stands as ~4 GW/year.
Source: EY Analysis based on JMK Research

1 2 3 4 5 6 7
Recommendations for sub-national green hydrogen policy frameworks
The following sections highlight key policy interventions to be adopted ► Waivers, clarity and certainty of open access charges for
by states (sub-national actors) until the green hydrogen supply chain GH2 production
and adoption achieves sufficient economies of scale. State governments should extend waivers for levy of open access charges
(e.g. banking, cross subsidy, additional surcharge etc.) for the first 0.5 – 1
1. Reducing the cost of renewable power generation and supply
Million tons of GH2 production to reduce cost and encourage GH2
for GH2 production
adoption. If not viable, open access charges should be kept at minimum
Round-the-clock renewable power generation accounts for 40-50% of with clarity and certainty of its validity period in the regulations.
the levelized cost of green hydrogen production and storage (LCOH).
Sub-national policy frameworks should aim to minimize the cost of this ► Allow banking of surplus energy in the production of GH2
critical supply chain component and significantly improve the ease of Existing open access regulations should be amended for allowing banking
doing open access transactions. In this regard, the draft Electricity of at least 10% annual generation for min. 30 days in line with national
(promoting renewable energy through Green Energy Open Access) green hydrogen policy.
Rules, 2021 notified by Ministry of Power, Government of India in ► Fungibility of green hydrogen and renewable purchase obligations
August 2021 is a step in the right direction. However, the responsibility Open access regulations should specify mechanisms for monitoring,
of facilitating open access lies with the State Electricity Regulatory verification, certification and accounting to enable such fungibility of
Commission, as per Section 42 and Section 86 of the Electricity Act, purchase obligations.
2003. Therefore, the central rules and other state level policy
interventions should ultimately manifest as amendments to existing 2. Improve ease of doing renewable energy open access
open access regulations at state level for meaningful outcomes. (REOA) transactions
► Waiver of Intra-state transmission charges for GH2 production Rule#6 and 7 in draft Electricity (promoting renewable energy through
Green Energy Open Access) Rules, 2021 focus on streamlining, centralizing
The national green hydrogen policy notified in Feb’22 has announced and standardizing open access approval processes for renewable energy
the waiver of inter-state transmission charges for a period of 25 years transactions. Given delays in processes and existing complex processes,
for green hydrogen production units commissioned before 30 June such an approach is needed. A centralized registry is proposed to enable
2025. However, green hydrogen production units must be connected single window clearance for REOA applications. The applications are to be
with ISTS network at the point of GH2 production to fully realize the routed through the state nodal agency, which as per Rule 6 (2) would either
benefits of this waiver. Otherwise, respective intra-state transmission be the SLDC for STOA and the CTU/STU for LT/MTOA. As per Rule 7 (2)
charges may still apply. In this regard, states that extend similar waivers complete applications are to be uploaded by the nodal agency and in order
for intra-state transmission charges will enable industry to gain to prevent delays, applications are deemed approved after 15 days subject
competitive advantage in the production of green hydrogen. Such to technical requirements specified by the ERC. Further, as per Rule 7 (4)
waivers can extend for limited periods or be limited for first 0.5 – 1 and (5) denial of open access should take place with a written order and the
million tons of annual GH2 production to help achieve economies of applicant has the right to be heard. Further appeal against orders by the
scale. Open access regulations could explore mechanisms to socialize nodal agencies is to be processed by the State Commission. Existing open
the cost of this waiver to reduce fiscal burden. access regulations should be amended suitably with above provisions.

1 2 3 4 5 6 7
Recommendations for sub-national green hydrogen policy frameworks
3. GIS mapping and identification GH2 clusters for development 6. Production linked incentives and fiscal benefits for high
efficiency and durable electrolyzed systems
States should undertake GIS mapping of renewable energy resource rich
locations, GH2 demand centers - for example crude oil refineries, fertilizer
Electrolyzed systems account for 30-40% of the levelized cost of green
industries, iron and steel manufacturing units, ports, industrial SEZs and
hydrogen production and storage (LCOH). Sub-national policy
transport corridors (roadways, railways, inland waterways), land use – land
frameworks should aim to minimize the cost of this critical supply chain
cover (LULC) in the vicinity of GH2 demand centers, water bodies for
component. Therefore, states should offer additional incentives (apart
sourcing fresh water used in the production of electrolysis, etc. GIS mapping
from national PLI scheme if any) linked to production of high efficiency
along with other geospatial characteristics, potential demand for GH2 and
and durable electrolyzed systems. Electrolyzed systems used in the
other relevant attributes should be gathered to rank / prioritize various
production of GH2 should be brought in the lowest GST slab or waived off
clusters with respect to their inherent capability of supporting a GH2
completely.
economy, supply chain and consumption.
4. Establish state level mission for advancing GH2 economy, 7. Enhance public funding support towards R&D programs
formulate and adopt GH2 production targets separately for calling for demonstration of projects that support
industries, transportation and other sectors of the economy competitiveness of GH2 supply chain and end-use
States must establish GH2 mission with a governance mechanism for State budgetary resources should be allocated towards creating centers
interdepartmental coordination, monitoring and evaluation of policy of GH2 excellence, robust coordination mechanisms to aggregate
interventions. The governance mechanism should include be represented by demand, cutting edge R&D calling for demonstration of following
energy, industries, and transport departments at the minimum. projects:
► Cost effective high efficiency durable electrolyzers made with earth
Robust and predictable demand for GH2 is essential for accelerating
investments in the supply chain. In this regard, states must adopt short, abundant electrocatalyst materials
medium and long term GH2 production targets separately for crude oil ► Hydrogen based direct reduced iron (H2-DRI) and electric arc
refineries, fertilizer industries, iron and steel manufacturing units, other furnace steel projects
industries, transportation sectors etc.
► Cost effective Hydrogen fuel cell powered transportation solutions
5. Single window portal for all statutory clearances, permissions
capable of competing with conventional ICE engine and / Or battery
required for manufacture, transportation, storage and
electric systems
distribution of green hydrogen / ammonia
States should establish sing window mechanisms in coordination with ► Cost effective hydrogen storage materials and solutions made from
central institutions for facilitating all statutory clearances, permissions earth abundant materials
required for manufacture, transportation, storage and distribution of green
hydrogen / ammonia within defined

1 2 3 4 5 6 7
6 International experience and lessons for India

Unique levers of hydrogen strategies adopted in developed countries
Hydrogen strategies
Germany Norway Japan Australia
► ~GBP8 billion allocated to ► ~GBP8 billion allocated to ► Y70 billion allocated to ► Target of 500-1,000MW or
hydrogen economy hydrogen economy hydrogen in financial year equivalent clean hydrogen
Hydrogen plan and targets
development; ~GBP6 billion development; ~GBP6 billion ending March 2021 production
to domestic hydrogen to domestic hydrogen ► Target of 800,000 FCEVs by ► Aim to become one of the
capabilities and ~GBP2 capabilities and ~GBP2 2030 and 900 refuelling top three exporters of
billion overseas investments billion overseas investments stations by 2030 hydrogen globally
► Target of 5GW wind-based ► Target of 5GW wind-based ► Commercial hydrogen-based
generation capacity by 2030 generation capacity by 2030 power generation by 2030
and an additional 5GW latest and an additional 5GW latest targeted
by 2040 by 2040
► 300,000 tonnes/year
► 90-110TWh of hydrogen ► 90-110TWh of hydrogen hydrogen production by
targeted by 2030 targeted by 2030 2030
► Emphasis on green hydrogen ► EV like privileges for FCEVs ► Strong focus on mobility ► Strong focus on export
from the start ► Leveraging strong maritime applications capability development
Dedicated governance for capabilities Point-to-point supply chain State-specific hydrogen
Unique features of
hydrogen strategy
► ► ►
hydrogen ► End-user engagement development plans strategies
► Direct investment in through information ► Focus on the residential fuel ► Dedicated fund for hydrogen
developing overseas supply dissemination on refuelling cell market
centres and costs ► Specific cost targets across
► Repurposing the extensive the supply chain
gas network
► Preferential status for green
hydrogen

1 2 3 4 5 6 7
Germany’s Hydrogen Strategy
Germany’s Hydrogen Strategy – Key differentiators (1/2)
Emphasis on green
Dedicated governance for hydrogen
hydrogen from the start
► Germany is establishing a sound governance structure with ► In its National Hydrogen

clear responsibilities and mandates for involved entities Strategy, the federal
► A State Secretaries’ Committee on Hydrogen, comprising government of Germany
the relevant ministries, will be formed to monitor and lays significant focus on
develop Germany’s National Hydrogen Strategy production and use of
A well-structured Green hydrogen green hydrogen,
governance ► A 26-member National Hydrogen Council will be appointed is central to compared to other forms
comprising three by the State Secretaries’ Committee on Hydrogen, with Germany’s (grey and blue)
key entities is representation from business, science, and civil society. The hydrogen
council will advise and support the State Secretaries’ ► The Federal Government
being established strategy. considers only hydrogen
to manage the Committee through proposals and recommendations for
action in implementing and enhancing the Hydrogen that has been produced
National Hydrogen using renewable energy
Strategy. Strategy.
(green hydrogen) to be
► A Hydrogen Coordination Office is also being established,
sustainable in the long
which will assist the ministries in implementing the
term. The role of blue
Hydrogen Strategy and the Hydrogen Council in
hydrogen is largely
coordinating and drafting recommendations for action.
transitional.
► A significantly large part
of the government’s
research and technology
development is focused
Germany’s on green hydrogen
governance structure
for hydrogen

1 2 3 4 5 6 7
Germany’s Hydrogen Strategy (cont.)
Germany’s Hydrogen Strategy – Key differentiators (2/2)
Developing Repurposing the Preferential status for

international partners extensive gas network green hydrogen
► Estimated domestic ► A blueprint for the ► Green hydrogen falls

production of green world’s largest within the definition
hydrogen will be hydrogen grid, of biogas and will
inadequate to meet covering about enjoy preferential
targeted 5,900 kilometers, network connection,
Germany will requirements, with Existing gas has been announced. Preferential network access and
develop overseas insufficient pipelines will act The first phase of status balancing
sourcing centers renewable power as the 1,200 kilometers will has been ► Under Germany’s
to fulfil domestic generation being a foundations be ready by 2030. accorded Network Access
shortfall of green major challenge. for a nation-wide ► The existing gas to green Regulation, the
hydrogen. ► In addition to hydrogen grid. pipeline network will hydrogen injection of biogas
imports, the German form a large part of transmission and (and hence hydrogen
government will the hydrogen grid. distribution. produced from
develop Only 100 kilometers electrolysis) into the
infrastructure in of the first phase will gas transmission grid
partner countries for be built, while the and distribution
sourcing green rest will be converted network is free of
hydrogen. gas pipelines. charge
Investments are ► At a cost of ~GBP585
planned for a 100 million, the grid will
MW green hydrogen connect the green
facility in Morocco. hydrogen producing
► ~GBP2 billion has regions in the north
been earmarked for to the demand
developing global centers in the south
supply chains

1 2 3 4 5 6 7
Norway’s Hydrogen Strategy
Australia’s Hydrogen Strategy – Key differentiators
Leveraging
EV privileges for FCEVs Engaging end-users
maritime capabilities
► Almost all financial ► Norway’s maritime ► Recognizing that

concessions and sector will play an market information
other rebates integral role in the available to users will
available to EVs in country’s drive drive hydrogen
Norway are also towards hydrogen. adoption, measures
Replication of the being provided for Norway’s ► Several research and End-users to provide
success of EVs FCEVs by the well-developed pilot projects are are being information about
is being Norwegian maritime sector under process to enabled to adopt available refueling
attempted government has been shift domestic hydrogen by and charging stations
through ► FCEVs (until 2025 or identified maritime operations providing for alternative fuels
concessions 50,000 vehicles) are to adopt and to hydrogen. A them are being developed.
for FCEVs exempt from vehicle drive the hydrogen-powered necessary A list of
and other means. registration tax and hydrogen market. ferry will start information. infrastructure for
VAT until 2023. They operating this year alternative fuels for
are also exempt from onwards. road transport and
road traffic insurance maritime will be
► Norway also has
tax and registration available to the
large-scale fuel
transfer fee. public.
transport facilities
► Toll fee has been along its coastline. ► Comparable price
limited to not more As part of its data will also be
than half of normal hydrogen strategy, accessible to the
rates for FCEVs. A LNG bunkering, public in the future
proposal to limit the storage and
parking charges is processing
also underway. competencies will be
used for hydrogen
trade in the future.

1 2 3 4 5 6 7
Australia’s Hydrogen Strategy
Australia’s Hydrogen Strategy – Key differentiators
Strong export focus Regional strategies for faster growth
► The Australian hydrogen ► Sub-national hydrogen strategies and action plans have been
strategy places significant framed by states such as Queensland, South and Western
focus on developing export Australia, and Tasmania
capabilities aimed at the ► These states are bringing forth their specific advantages in
Japanese and South Korean the hydrogen value chain and are pursuing opportunities in
Australia plans markets. It is targeting to All Australian both the domestic and international markets.
to emulate become one of the top states
► For instance, the state of South Australia that derives around
its LNG export hydrogen exporters globally by are pursuing their
50% of its energy needs from renewable sources is inviting
successes with 2030. hydrogen
investment in green hydrogen production for exports.
hydrogen. strategies.
► The government of Australia ► The Victorian state government is partnering with Japanese
has granted 'major project government for the PROJECT X that will be used for
status’ to the Asian Renewable supplying hydrogen to Japan
Energy Hub, which will produce
green hydrogen (using a 14MW
electrolyzer capacity) for A hydrogen fund
exports to Asia
► Australia has partnered with ► Australia has established the ~GBP167 million Advancing
Japan for establishing a fully Hydrogen Fund, which is one of the largest national funds
integrated hydrogen supply globally dedicated to hydrogen
chain (PROJECT X), starting
► The fund will be provide concessional finance for projects
with production in Australia’s
that boost Australia's hydrogen production, develop export
Victoria and transportation to A dedicated fund and domestic supply chains, establish hubs and build
Kobe, Japan. The world’s first exists for domestic demand
liquid hydrogen carrier has hydrogen
been deployed as part of the ► In addition, the government has provided another ~GBP39
projects.
supply chain. million to seven projects under the ‘Renewable Hydrogen
Deployment Funding Round’

1 2 3 4 5 6 7
Japan’s Hydrogen Strategy
Japan’s Hydrogen Strategy – Key differentiators
Point-to-point supply chains

Strong focus on mobility applications
development plans
► Japan is aiming for 200,000 FCEV units by 2025 and ► Japan has stated an intent
800,000 units by 2030. Technology developments, to import substantial
public-private coordination and regulatory frameworks quantities of hydrogen from
have been planned to make FCEVs affordable and abroad to supplement
competitive. domestic production
Japan has set ► Through these initiatives, the government plans to Japan is ► Pilot projects are being run
aggressive targets bring down the cost of FCEVs to the level of hybrid creating hydrogen on international supply chain
for FCEVs to electric vehicles (HEVs) by 2025 supply chains developments with other
further across parts of countries
consolidate ► In addition, FCEVs for personal use are subsidized the globe.
its leadership and eligible for tax breaks ► Recently, Saudi Arabia has
position globally. ► 320 hydrogen refueling stations will also be set up by transported blue hydrogen
2025. Capex and opex reduction of filling stations in the form of ammonia to
through technology development and efficiency Japan
enhancement is being pursued. ► A project (mentioned under
► At present, construction of hydrogen refueling Australia) to extract
stations are subsidized hydrogen from brown coal in
Australia, liquefying it and
► To reduce the construction and operating costs of
transporting that to Japan is
hydrogen filling stations, revisions have been made
underway
to several items in the Regulatory Reform
Implementation Plan ► In another project with
Brunei, hydrogen is being
► Specific cost targets for components of a filling
extracted using the organic
station have been set for 2025 by the government
hydride method from unused
gas for transport to Japan

1 2 3 4 5 6 7
7 Annexures

ANNEXURE II: Green Hydrogen Projects under Pipeline
Green Hydrogen production projects
Project Date of Project Promoter

Type of Project Hydrogen production or Electrolyzer capacity
Location announcement (Public / Private)
PAN India Mar-21 Private Partnership for Green Hydrogen Production
Tamil Nadu Mar-21 Private Partnership for Green Hydrogen Production
Uttar Pradesh Jun-21 Public Green Hydrogen Production 500 kW – 1000 kW
PAN India Jul-21 Private Partnership for Green Hydrogen Production
Andhra Pradesh Jul-21 Public Green Hydrogen Production 50kW, 0.13 TPD
Ladakh Jul-21 Public Green Hydrogen Production 1.25 MW solar plant for green electricity generation source
PAN India Aug-21 Public Pilot Green Hydrogen Plant
Karnataka Aug-21 Private Electrolyzer Manufacturing Manufacturing capacity: 500 MW/year; can be scaled to 2GW/year
Ladakh Aug-21 Public Green Hydrogen Production 25 kW
Gujarat Sep-21 Private Electrolyzer Manufacturing 2.5 GW Electrolyzer Manufacturing plant
PAN India Sep-21 Private Partnership for Green Hydrogen Production
PAN India Oct-21 Private Green Hydrogen Production
Madhya Pradesh Oct-21 Public Tender for Green Hydrogen Production 4.3 Ton per day (TPD) Hydrogen production
Gujarat Oct-21 Private Green Hydrogen Production 2 MW Solar plant to be used for electricity production for electrolyzer
5 MW PEM Electrolyzer project- 2TPD Hydrogen production plug power

Madhya Pradesh Oct-21 Public Green Hydrogen Production
make
Oct-21 Private Partnership for Electrolyzer Manufacturing
PAN India Nov-21 Public Tender for Green Hydrogen Production 100 MW in the first phase + a 25 kW self-developed Fuel cell pilot project
Madhya Pradesh Nov-21 Public Tender for Green Hydrogen Production 20 MW electrolyzer
PAN India Nov-21 Public Tender for Green Hydrogen Production 200MW - 2GW

1 2 3 4 5 6 7
ANNEXURE II: Green Hydrogen Projects under Pipeline
Green Hydrogen production projects
Project Date of Project Promoter

Type of Project Hydrogen production or Electrolyzer capacity
Location announcement (Public / Private)
Uttar Pradesh and 40 MW/5000MT per annum (Uttar Pradesh) and 15 MW/2000 MT per
Nov-21 Public Tender for Green Hydrogen Production
Haryana annum (Haryana)
Madhya Pradesh Nov-21 Private Green Hydrogen Production 50 kiloton per annum
PAN India Dec-21 Private Partnership for Green Hydrogen Production
PAN India Dec-21 Public Partnership for Green Hydrogen Production
PAN India Dec-21 Private Partnership for Green Hydrogen Production >2 GW
PAN India Dec-21 Public Partnership for Green Hydrogen Production
Maharashtra Jan-22 Private Electrolyzer Manufacturing 1 GW
PAN India, Europe

Jan-22 Private Partnership for Green Hydrogen Production 1 GW
and UK
PAN India Feb-22 Private Partnership for Green Hydrogen Production
PAN India Apr-22 PPP Partnership for Green Hydrogen Production

1 2 3 4 5 6 7
References
1. IEA, Indian Energy Outlook 2021, https://www.iea.org/reports/india- 11. Indraprastha gas limited; National coal index, 2021
energy-outlook-2021 https://iglonline.net/english/Default.aspx?option=article&type=single
2. Status Quo Mapping of Hydrogen Production and Consumption in &id=40&mnuid=103&prvtyp=site
India, Indo-German Energy Forum, 2021 12. Compiled by Mr. Vivek Jha, Indo-German Energy Forum 2021
3. Aziz, M. Liquid Hydrogen: A Review on Liquefaction, Storage,
Transportation, and Safety. Energies 2021, 14, 5917. 13. CEA, Installed capacity report, 2022 https://cea.nic.in/wp-
https://doi.org/10.3390/en14185917 content/uploads/installed/2022/02/installed_capacity.pdf
4. https://pib.gov.in/PressReleasePage.aspx?PRID=1799067 14. IEA, Global Hydrogen Review, 2021
5. Hydrogen tools, https://h2tools.org/hyarc 15. O. Schmidt, A. Gambhir, I. Staffell, A. Hawkes, J. Nelson, S. Few,
6. Hall, W., Spencer, T., Renjith, G., and Dayal, S. 2020. The Potential Future cost and performance of water electrolysis, 2017,
Role of Hydrogen in India: A pathway for scaling-up low carbon https://doi.org/10.1016/j.ijhydene.2017.10.045.
hydrogen across the economy. New Delhi: The Energy and Resources
Institute (TERI) 16. CEEW, Catalysing Green Hydrogen Growth in India, 2021,
https://cef.ceew.in/masterclass/analysis/catalysing-green-hydrogen-
7. Biswas, Tirtha, Deepak Yadav and Ashish Guhan.2020. A Green
Hydrogen Economy for India: Policy and Technology Imperatives to growth-in-india
Lower Production Cost. New Delhi: Council on Energy, Environment 17. DST 2020
and Water
18. National hydrogen strategies of Germany
8. Energy map of India, https://vedas.sac.gov.in/energymap/
9. Ministry of Power (GoI),2022 19. Norway national hydrogen strategy
https://powermin.gov.in/sites/default/files/Green_Hydrogen_Policy.p 20. Japan national hydrogen strategy
df
21. Australia national hydrogen strategy
10. Ministry of Coal (GoI), https://coal.gov.in/en/major-statistics/coal-
grades

1 2 3 4 5 6 7
Our Offices
Ahmedabad Delhi NCR Kolkata
22nd Floor, B Wing, Privilon Golf View Corporate Tower B 22 Camac Street
Ambli BRT Road, Behind Iskcon Sector 42, Sector Road 3rd Floor, Block ‘C’
Temple, Off SG Highway Gurugram - 122 002 Kolkata - 700 016
Ahmedabad - 380 059 Tel: + 91 124 443 4000 Tel: + 91 33 6615 3400
Tel: + 91 79 6608 3800
3rd & 6th Floor, Worldmark-1 Mumbai
Bengaluru IGI Airport Hospitality District 14th Floor, The Ruby
12th & 13th floor Aerocity, New Delhi - 110 037 29 Senapati Bapat Marg
“UB City”, Canberra Block Tel: + 91 11 4731 8000 Dadar (W), Mumbai - 400 028
No. 24, Vittal Mallya Road Tel: + 91 22 6192 0000
Bengaluru - 560 001 4th & 5th Floor, Plot No 2B
Tel: + 91 80 6727 5000 Tower 2, Sector 126 5th Floor, Block B-2
Gautam Budh Nagar, U.P. Nirlon Knowledge Park
Ground Floor, ‘A’ wing Noida - 201 304 Off. Western Express Highway
Divyasree Chambers Tel: + 91 120 671 7000 Goregaon (E)
# 11, Langford Gardens Mumbai - 400 063
Bengaluru - 560 025 Hyderabad Tel: + 91 22 6192 0000
Tel: + 91 80 6727 5000 THE SKYVIEW 10
18th Floor, “SOUTH LOBBY” Pune
Chandigarh Survey No 83/1, Raidurgam C-401, 4th floor
Elante offices, Unit No. B-613 & 614 Hyderabad - 500 032 Panchshil Tech Park, Yerwada
6th Floor, Plot No- 178-178A Tel: + 91 40 6736 2000 (Near Don Bosco School)
Industrial & Business Park, Phase-I Pune - 411 006
Chandigarh - 160 002 Jamshedpur Tel: + 91 20 4912 6000
Tel: + 91 172 6717800 1st Floor, Shantiniketan
Building, Holding No. 1,
Chennai SB Shop Area, Bistupur
Tidel Park, 6th & 7th Floor Jamshedpur – 831 001
A Block, No.4, Rajiv Gandhi Salai Tel: + 91 657 663 1000
Taramani, Chennai - 600 113
Tel: + 91 44 6654 8100 Kochi
9th Floor, ABAD Nucleus
NH-49, Maradu PO
Kochi - 682 304
Tel: + 91 484 433 4000
Ernst & Young LLP About SED Fund
EY | Building a better working world
The SED Fund was set up in 2018 to deliver an ecosystem of
EY exists to build a better working world, helping to create actions mapped to nine of the United Nations’ Sustainable
long-term value for clients, people and society and build trust Development Goals by raising ambitions through philanthropic
in the capital markets. support. The breath of the SDGs to which our work is linked
Enabled by data and technology, diverse EY teams in over highlights the systemic nature of the approach needed to support
150 countries provide trust through assurance and help economic development according to our vision of sustainability,
clients grow, transform and operate. equity, and diversity.
Working across assurance, consulting, law, strategy, tax and

transactions, EY teams ask better questions to find new The SED Fund catalyses resources and leadership for an equitable
answers for the complex issues facing our world today. energy transition and climate action, by raising the ambitions of
civil society through philanthropic support. We use a venture
EY refers to the global organization, and may refer to one or philanthropy model that provides seed funding to early-stage
more, of the member firms of Ernst & Young Global Limited, organisations or programmes and continues to support them in
each of which is a separate legal entity. Ernst & Young Global their growth and scale-up journey. The SED team uses its
Limited, a UK company limited by guarantee, does not
extensive networks to identify bold ideas with unique models and
provide services to clients. Information about how EY
enables them to be effective towards climate action. We provide
collects and uses personal data and a description of the
timely, reliable, and relevant data, sharing learning on the issues
rights individuals have under data protection legislation are
available via ey.com/privacy. EYG member firms do not and solutions, working towards effective implementation at a
practice law where prohibited by local laws. For more local, national, regional, and sectoral level and funding work
information about our organization, please visit ey.com. aligned with our mission. We apply a strategic focus, and an
independent, analytical, and fact-based approach in co-
developing strategy with partners and stakeholders.
Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For
more information about our organization, please visit www.ey.com/en_in.
Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Since many of the grantees are new organisations, the SED team
Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, directly invests time and effort in mentoring and capacity
Block C, Kolkata – 700016
building. Organisation development support is also provided in
© 2022 Ernst & Young LLP. Published in India. areas such as strategy, fundraising, systems, and processes.
All Rights Reserved.
EYINX2206-015
ED None We believe an innovative and multi-partner approach, operating
This publication contains information in summary form and is therefore intended for general at the required scale and pace is imperative to address the scale
guidance only. It is not intended to be a substitute for detailed research or the exercise of of the challenge. We also seek to remain nimble and adapt in real
professional judgment. Neither EYGM Limited nor any other member of the global Ernst &
Young organization can accept any responsibility for loss occasioned to any person acting or time to the context, needs and opportunities that arise.
refraining from action as a result of any material in this publication. On any specific matter,
reference should be made to the appropriate advisor.
Address: Fluwelen Burgwal 58, 2511CJ 's-Gravenhage, Netherlands
JN
Website: www.stichtingsed.org
Contact Us: info@stichtingsed.org

Ey Accelerating Green Hydrogen Economy

Uploaded by

Copyright:

Available Formats

Ey Accelerating Green Hydrogen Economy

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ey Accelerating Green Hydrogen Economy

Uploaded by

Copyright:

Available Formats

Accelerating Green

Somesh Kumar Mohammad Saif Shuboday Ganta

Aaron Cherian Aditya Prakash Utkarsh Mathur

Vikas Mehta Kartikeya Singh

2 Accelerating Green Hydrogen Economy

3 Accelerating Green Hydrogen Economy

CNG Compressed Natural Gas PPP Public Private Partnerships

CTU/STU Central/State Transmission Utility kW kilowatt PV Photovoltaic

DRI Direct Reduced Iron RPO Renewable Purchase Obligation

g Grams MPa Mega Pascal SMR Steam Methane Reforming

GIS Geographic Information System MW Megawatt USD United State Dollar

GST Goods and Services Tax NHM National Hydrogen Mission

4 Accelerating Green Hydrogen Economy

Hydrogen properties, emerging Green hydrogen supply chain,

Evolving green hydrogen policy

Section 7 Annexure Annexures

5 Accelerating Green Hydrogen Economy

6 Accelerating Green Hydrogen Economy

Hydrogen demand for ammonia production in fertilizer

7 Accelerating Green Hydrogen Economy

4 Establish state level mission for advancing GH2 economy,

Source: EY Analysis based on JMK Research

8 Accelerating Green Hydrogen Economy

9 Accelerating Green Hydrogen Economy

As per the IEA’s ‘India Energy Change in primary energy

energy demand in the last two Modern Renewables Transformation losses

10 Accelerating Green Hydrogen Economy

Green hydrogen as ‘Feedstock’ Green hydrogen as ‘Energy carrier’

Crude oil refining Fertilizers Industrial process heat Blending with

Metals Bulk chemicals Transportation Power generation

11 Accelerating Green Hydrogen Economy

12 Accelerating Green Hydrogen Economy

Grey hydrogen Turquoise Green hydrogen Yellow hydrogen

Carbon Capture Utilization and storage (CCUS)

13 Accelerating Green Hydrogen Economy

14 Accelerating Green Hydrogen Economy

Ammonia production Hydrocarbon

Other industries 9.51

2020 2030 2040 2050

15 Accelerating Green Hydrogen Economy

Use case Challenges and drivers Emerging market description

Significant investment in H2 storage, handling and ► Long-haul heavy-duty trucking

16 Accelerating Green Hydrogen Economy

► The following industrial sectors are likely to adopt green

appropriate blending concentrations in existing pipelines and

17 Accelerating Green Hydrogen Economy

18 Accelerating Green Hydrogen Economy

Hydrogen supply chain

Transportation End use

Distribution logistic Industrial

Pipeline Hydrogen filling Industrial

Biomass Power generation

*Note: Only key elements of the value chain are shown

19 Accelerating Green Hydrogen Economy

Electricity generation from wind Electrolysis

20 Accelerating Green Hydrogen Economy

Hydrogen supply chain

Transportation End use

Characteristic AEC PEMEC SOEC