India Hydrogen Alliance Forecasts $50 Billion Green Hydrogen Equipment Market by 2030

Report by IH2A Outlines India’s Potential as a Global Supply Hub for Hydrogen Equipment

India Hydrogen Alliance (IH2A) has released a significant report on the hydrogen industry, forecasting a substantial market for Indian-manufactured hydrogen equipment. According to the report, this market is estimated to be valued at USD 45-50 billion by the year 2030. The assessment encompasses all hydrogen production plant equipment, including electrolysers and balance-of-plant equipment, both for domestic use and export to the Asia, Middle East, and Africa region. This positions India as a potential supply chain hub for green hydrogen projects in the future.

The market breakdown within the estimated value includes 34% for electrolysers stacks, 62% for Balance of Plant equipment, and 4% for specialist Engineering Services. The report emphasizes India’s opportunity to leverage its manufacturing and engineering capabilities to create a regional supply chain hub for hydrogen plant equipment.

The estimated USD 45-50 billion market includes:

  1. A domestic market for hydrogen equipment in India, conservatively valued at USD 9 billion. This market is based on an estimated 135 domestic plants by 2030, deploying 6.8 GW per annum of electrolyser capacity to produce and deliver at least 1 million metric tons of green hydrogen for industrial use. The scale of these green hydrogen projects can vary, with capacities ranging from 10 MW to 100 MW, across various use cases.
  2. The potential for regional hydrogen equipment exports, valued at least USD 34 billion. This involves exporting locally manufactured electrolysers and Balance of Plant equipment to an estimated 540 projects in the APAC, Middle East, and Africa region.
  3. The report also identifies the potential for specialist engineering design, EPC, and service exports, worth at least USD 2 billion. This export potential is linked to operational expenses on deployed project CAPEX investments and is expected to create approximately 162,000 direct and indirect jobs.

Jill Evanko, Chief Executive and President of Chart Industries and a founding member of IH2A, stressed the need for large-scale manufacturing expansion and investments in electrolysers and Balance of Plant equipment to realize this opportunity. Project developers and equipment manufacturers are awaiting government support and secured offtake agreements for early projects to commit substantial capital investments.

Amrit Singh Deo, Senior Managing Director at FTI Consulting and IH2A Secretariat lead, highlighted that India’s focus should be on becoming the preferred equipment supplier for hydrogen projects in the region over the next decade. This presents an opportunity for collaboration between the government, industry, and investors to turn India’s competitive edge in industrial manufacturing and engineering talent into an advantage.

The IH2A’s Hydrogen Equipment Manufacturing and Service market assessment report is a proactive step towards developing India’s hydrogen economy, with support from the industry. It represents a substantial opportunity for India to play a crucial role in the emerging green hydrogen economy and potentially become a global supply chain hub.