The paper ‘India’s opportunity for a strategic shift in global energy trade’ by Alvarez and Marsal underscores India’s potential as a competitive market for green hydrogen production, leveraging its abundant renewable energy resources such as wind and solar power.
Alongside India, countries like Egypt, Latin America (specifically Chile and Argentina), as well as Saudi Arabia, the UAE, mainland China, Australia, and the United States are highlighted in the report for their competitiveness in the green hydrogen sector.
The report emphasizes that the competitiveness of green hydrogen production is contingent upon various factors including renewable energy availability, manufacturing, engineering, and construction capabilities, the electricity ecosystem, and the cost of capital. Notably, the UAE and Saudi Arabia are identified as leading contenders for producing green hydrogen at the lowest levelized cost of hydrogen (LCoH) among the analyzed countries.
As reported by RenewableWatch, in 2023, the UAE is estimated to have an LCoH of $2.7/kg, projected to decrease to $1.7/kg by 2030. Similarly, Saudi Arabia’s LCoH is forecasted to be $2.9/kg in 2023, with a projected decrease to $1.8/kg by 2030. India is expected to rank third in terms of low LCoH, with projected costs of $3.2/kg in 2023, reducing to $1.8/kg by 2030 according to the findings of the report.
