4 April 2024 – Avendus Capital forecasts a substantial investment opportunity in India’s green hydrogen value chain, estimating a cumulative potential of $125 billion by 2030. The surge in interest is attributed to sustainability initiatives, growing commercial viability, expanding applications, and supportive regulatory frameworks.
The investment outlook encompasses various segments, with renewable energy production leading with an anticipated investment of nearly $80 billion by 2030. Additionally, green hydrogen and green ammonia production present opportunities of $30 billion and $10 billion, respectively, while electrolyser production offers a $5 billion investment potential.
Avendus Capital’s Managing Director Prateek Jhawar highlights India’s advantageous position, citing low renewable electricity costs, ample fresh water availability, and emerging manufacturing prowess as key enablers for competitive green hydrogen production.
Steel industry involvement is pivotal, driven by the Carbon Border Adjustment Mechanism (CBAM) in the EU, which mandates green hydrogen adoption. Avendus Capital’s Director Akhil Dokania emphasizes the significance of domestic green steel consumption and the resultant infrastructure investments.
Despite the potential, challenges such as resource constraints and funding gaps are acknowledged. Dokania highlights the need for substantial equity investments, signaling a demand of $40 billion by 2030, posing a significant financing challenge.
However, investor interest remains robust, extending beyond traditional infrastructure-focused entities to encompass a diverse range of investors. Avendus Capital notes a global shift towards energy transition investments, attracting capital from venture funds to private equity, reflecting the sector’s growing prominence in capital deployment strategies.
