Green hydrogen prices in India are dropping below gray hydrogen due to high natural gas costs, according to Bloomberg. Hygenco expects to reach 150 million kg annual output by 2030.
Green hydrogen, produced using renewable energy, is becoming more competitively priced in India, according to Hygenco, a local producer. The company reports that green hydrogen is now selling for less than hydrogen made from natural gas, known as gray hydrogen, which has traditionally been cheaper.
Hygenco, a leading producer, has stated that for some 20-year contracts, green hydrogen is now being sold at prices lower than gray hydrogen, while maintaining profitability. The gray hydrogen prices range between $2.70 and $4 per kilogram, while global green hydrogen prices typically fall between $3 and $7 per kilogram.
Green hydrogen is critical for reducing carbon emissions in industries like steelmaking, chemicals, and transportation. India aims to lower its green hydrogen price to $1.50 per kilogram by 2030 and ramp up annual production to 5 million tons.
Hygenco, with two projects already operational and a third expected by year’s end, targets an annual output of 150 million kilograms by 2030, aligning with India’s push for green hydrogen growth. Bloomberg reports that while industry pledges to meet green hydrogen goals are substantial, more binding sales agreements are needed to scale production.
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