Rapid deployment of low-emission fuels during this decade will be crucial to
accelerate the decarbonisation of the transport sector. Significant electrification
opportunities are available for the road transport sector, while the aviation and
marine sectors continue to be more reliant on fuel-based solutions for their
decarbonisation.

This paper estimates the hydrogen production costs for India through a spatio-temporal analysis of the production modes and cost of production of hydrogen from solar and wind energy till 2040. In the spatial analysis, it factors in 19 centres (including six metros) and the sectors of the economy (fertiliser, refineries, and iron and steel) that are likely to drive future demand for hydrogen. Further, the study considers baseline and optimistic scenarios in future projections. It determines the cost of hydrogen production in 2020, 2030 and 2040 in these two scenarios.

Analysis in this report is shaped from TERI’s broader work on transport systems, the balance of evidence suggests that renewable electricity, electricity storage, and hydrogen, along with biomass-based electricity and fuels, are the most viable energy options for India in a zero-carbon emissions economy. It turns out that hydrogen has the potential to play a major role across a number of sectors. This report conducts a holistic assessment of hydrogen production and use for the Indian context.

Indian industry and government should work together to develop a hydrogen economy under an ambitious 'Hydrogen Mission' to maximise the benefits for India and accelerate the energy transition. TERI sees green hydrogen as the next 'clean energy prize', which will require coordinated action from industry and government for India to capture the benefits.