Unlocking the Potential of India's Manufacturing Sector for Green Hydrogen

Partnerships, R&D, efficiency, and innovation must be the driving factors behind the growth of India's green hydrogen sector in manufacturing sector
Unlocking the Potential of India's Manufacturing Sector for Green Hydrogen

India's manufacturing sector is a tremendous source of strength, and the country’s MSME base is a key contributor to this. Several areas, such as metalworks and processing, have strong manufacturing capabilities. However, to unlock its full potential, it is necessary to focus on partnerships with vendors and suppliers to develop their capabilities effectively. There are also opportunities for new manufacturing ecosystems, such as for electrolyser components, which must be developed to support the growth of the green hydrogen sector.

The development of electrolyser component manufacturing should be a central focus, along with producing complete electrolysers in tandem. This approach helps to ensure that manufacturing capabilities are built together with the demands of the assembly line, and the essential supporting components are available to scale-up production.

There are some significant technical challenges that must be addressed, such as membrane manufacturing, membrane and electrode assembly and nickel plated component manufacturing. Although the manufacturing capability exists, unlocking demand for the components needs to happen. One way to accomplish this is to focus on developing adjacent industries that require these components and membranes.

R&D must play a crucial role in addressing gaps in the market, such as membrane development. It is also important to bring down costs and look at material substitution avenues through value engineering and focusing on circularity. R&D can contribute to optimising manufacturing processes that reduce the cost of producing components, thereby making it possible to achieve green hydrogen's widespread adoption.


Unlocking the Potential of India's Manufacturing Sector for Green Hydrogen

To reduce the cost of green hydrogen, focus on the efficiency of electrolysers and Balance of Plant (BOP) systems. It is crucial that the choice of electrolyser technology should not be driven solely by cost but also by its end-use suitability as that would depend upon factors such as response time, operating temperature, scalability, integration capabilities, etc. For e.g., high temperature electrolysers such as solid oxide electrolysers would be suited for industries that generate a lot of waste heat which require high operating temperature to function efficiently.

To leverage the tremendous opportunity offered by the green hydrogen sector, several critical enablers must be in place. Firstly, we must have the availability of skilled talent, which requires a comprehensive and ongoing skilling program. Secondly, there must be active collaboration between academia, industry, and government, so that new technologies are transferred quickly from the lab to implementation. Thirdly, well-planned infrastructure must include the production, storage, distribution, and application of green hydrogen. Fourthly, sound policies must be formulated that create a level playing field and encourage industrial growth. Finally, this growth must be financed and invested in by partnering with global financial institutions and investors.

Leveraging digital technologies plays an important role in optimising the performance and integration of green hydrogen systems. By combining IoT, data analytics, and machine learning, it is possible to optimise performance of green hydrogen plant for effective integration both with the supply side (with intermittent sources of renewables) as well as on the demand side, given specifications of process industries for e.g., flow rate, pressure, etc. Leveraging technologies effectively can also significantly reduce the cost, increase safety, and improve efficiency.

In conclusion, the manufacturing sector has enormous potential to drive the growth of India's green hydrogen sector. Partnerships, R&D, efficiency, and innovation must be the driving factors behind this growth. Availing of an enabling ecosystem through policy, financing, and infrastructure support is also critical for its success. By doing this, the country can create a sustainable future for its people while contributing positively to the global energy need.

Author

Anvesha Thakker

Global Co-Lead Climate Change & Decarbonization: Partner & Lead, Renewable Energy

KPMG in India


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