Industry body projects USD 36 bn regional equipment and services exports market, USD 9-13.5 bn domestic equipment market size over next seven years
Potential of a regional hydrogen supply chain, equipment manufacturing and services hub in India
Industry body India Hydrogen Alliance (IH2A) has published a Hydrogen Equipment Manufacturing and Services report that estimates the addressable market for Indian-manufactured hydrogen equipment to be worth USD 45-50 bn by 2030. This market assessment includes all hydrogen production plant equipment, including electrolyser and balance-of-plant equipment, that can be deployed in India, and exported from India to the Asia, Middle East and Africa region, building India as a supply chain hub for future green hydrogen projects.
The estimated USD 45-50 bn hydrogen equipment and services market assessment is split 34% for electrolysers stacks, 62% for Balance of Plant equipment and 4% for specialist Engineering Services. The report makes the case for India to leverage its competitive advantage on manufacturing and engineering design to create a regional supply chain hub for hydrogen plant equipment in the country. The hydrogen equipment manufacturing and services estimate by IH2A comprises of:
- Domestic hydrogen production plant equipment market of USD 9 bn in India, on a conservative basis – based on estimated number of 135 domestic plants by 2030 deployment of 6.8 GW pa Electrolyser Capacity, producing and delivering at least 1 Mmt green hydrogen to domestic offtake for industrial use. The 135 green hydrogen projects could vary in scale, ranging from 10 MW, 20 MW, 50 MW to 100 MW projects using different electrolyser technologies across different scales and end-use configurations (across industrial use, fertilizer use-case and heavy-duty transport use-case) together with BoP Equipment (Compressors, Storage Tanks, Transformers, Rectifiers, Liquefaction Units, Air Separation Units, Dispensing Units, Power Systems, Sensors and Instrumentation, and Pipeline/ Evacuation Infrastructure). An optimistic view would add an additional 3.4 GW electrolyser capacity to add an additional USD 4.5 bn to the domestic market during the same period.
- Regional hydrogen equipment exports potential worth at least USD 34 bn – with locally manufactured electrolysers and Balance of Plant equipment being exported to an estimated 540 projects across APAC, Middle East and Africa region.
- Specialist engineering design, EPC and service exports worth at least USD 2 bn - based on 5% OPEX on deployed project CAPEX investments) bn in. This is expected to represent at least 162,000 direct and indirect jobs that would be created as a result of developing the hydrogen economy in India.
Speaking on the IH2A Hydrogen Equipment Manufacturing and Services Market Assessment Report, Jill Evanko, Chief Executive and President, Chart Industries (NYSE: GTLS), and founding member, IH2A, said, “India has the potential to become a regional supply hub for hydrogen production plants, playing to its competitive position in engineering design, manufacturing and services. This is a significant opportunity that will require large-scale manufacturing build out and investments, for electrolyser stack manufacturing and Balance of Plant equipment such as compressors, storage tanks, transformers, rectifiers, air separation Units, and hydrogen pipeline infrastructure. Project developers and equipment majors are waiting to hear from the government on demand aggregation and secured offtake for early projects before they commit large CAPEX investments. The estimated USD 45-50bn equipment market opportunity is achievable and could turn India into a global supply chain hub in the developing green hydrogen economy.”
Speaking on the IH2A hydrogen equipment manufacturing and services report, Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead, said, “Hydrogen equipment represents a significant export opportunity for India. The export market for Balance of Plant equipment is larger than the market for electrolyser stacks, and India should focus on being the preferred equipment supplier to all key hydrogen projects in the region over the next decade. This is an opportunity for government, industry and investors to work together and turn India’s competitive advantage on industrial manufacturing and engineering talent to its advantage. India should move quickly before other jurisdictions to build a hydrogen supply chain hub.”
The Hydrogen Equipment Manufacturing and Service market assessment report has been proactively prepared by India Hydrogen Alliance (IH2A), with support from industry to develop the hydrogen economy in India.