Green H2 production cost to fall below $3 per kg soon: Hardeep Singh Puri

Production cost of green hydrogen will come down to less than $3 per kilogram (kg) in India soon, said Union Minister of Petroleum and Natural Gas Hardeep Singh Puri. 

 

As the country scaled up production, the cost of green hydrogen has currently reduced to around $3.5 per kg in India from earlier estimates of $5.5 per kg, said Puri on Thursday at S&P Global Commodity Insights’ World Hydrogen India summit. 

 

“Today, the price is hovering at around $3.50 per kg for the production of green hydrogen. As we expand, replicate, and deepen, we are going to come below $3/kg,” he added.

 

 

“The cost of green hydrogen production at state-run Indian Oil Corporation’s Panipat 10 kilo tonnes per annum (ktpa) plant is below $4 per kg, while Hindustan Petroleum Corporation’s 5 ktpa plant in Visakhapatnam is around $3.5 per kg”.

 

The minister called India’s target of achieving green hydrogen production capacity of 5 million tonnes per annum (mtpa) by 2030 “conservative” as he expects production to reach beyond the set target.

 

He said that India’s oil and gas public sector undertakings have announced collective plans to set up 1 mtpa of green hydrogen capacity by 2030, signalling the companies’ readiness to lead the energy transition.

 

“The state-run oil marketing companies (OMCs) are in the process of floating tenders for the procurement of green hydrogen on a build, own, operate basis with an initial capacity of 42 ktpa, which is further expected to rise to 172 ktpa,” he added.

 

“The government has awarded 900,000 tonnes per annum production capacity of green hydrogen to 19 companies under the National Green Hydrogen Mission, which is a significant stride towards becoming a global leader in green hydrogen.”