A recent report by the India Hydrogen Alliance (IH2A) indicates that the market for hydrogen equipment manufactured in India is poised to reach a value between $45 billion and $50 billion by 2030. This assessment encompasses various components of hydrogen production plant equipment, such as electrolysers and balance-of-plant equipment, which can be utilised within India and exported to regions including Asia, the Middle East, and Africa. The goal is to establish India as a pivotal supply chain hub for forthcoming green hydrogen initiatives.

The report, titled ?Hydrogen Equipment Manufacturing and Services,? outlines the market breakdown, allocating 34% for electrolyser stacks, 62% for Balance of Plant equipment, and 4% for specialised engineering services. It advocates for India to capitalise on its competitive strengths in manufacturing and engineering design, transforming the nation into a regional supply hub for hydrogen plant equipment.

The report's estimates indicate a domestic market value of $9 billion for hydrogen production plant equipment in India, based on a conservative projection of 135 domestic plants deploying 6.8 GW of electrolyser capacity. These plants are expected to produce and supply at least 1 million metric tons of green hydrogen for industrial usage. The projects vary in scale, from 10 MW to 100 MW, employing diverse electrolyser technologies and end-use configurations, alongside Balance of Plant Equipment.

An optimistic scenario suggests an additional 3.4 GW of electrolyser capacity, contributing an extra $4.5 billion to the domestic market during the same period. Industry leaders, such as Jill Evanko, CEO and President of Chart Industries and a founding member of IH2A, emphasise the need for significant investments and large-scale manufacturing development to realise this opportunity. Demand aggregation and secured off take for early projects are crucial factors, prompting project developers and equipment majors to await government initiatives before committing substantial capital investments.

The report underscores the potential for India to become a regional supply hub for hydrogen production plants, calling for a focus on being the preferred equipment supplier for key hydrogen projects in the APAC, Middle East, and Africa region over the next decade. The export potential for Balance of Plant equipment alone is estimated at a minimum of $34 billion, with locally manufactured electrolysers and Balance of Plant equipment being exported to 540 projects across these regions. Additionally, specialised engineering design, EPC, and service exports are valued at a minimum of $2 billion, further enhancing India's position in the global green hydrogen economy.

Source: Indiatimes