India can be a key player in Hydrogen sector that could become half a trillion industry by 2050

India can be one of the key players in the Hydrogen sector which could be a USD 0.5 trillion industry by 2050, according to a study.

As per a white paper published by Alvarez & Marsal, India alongside North Africa, Latin America, Saudi Arabia, Australia, and the U.S. could be central to the future of green hydrogen production.


The Hydrogen industry is poised to serve 10-20 percent of the world's energy demand by 2050 and will be a crucial element in the global transition towards decarbonization, it added. By 2050, the demand for hydrogen is expected to surge by five times, it claimed.

The increasing global temperatures and extreme climate events caused by the industrial age have created an urgent need to reduce greenhouse gas emissions. Currently, annual emissions are around 53 billion tonnes of CO2 equivalent, with energy production from fossil fuels accounting for 66% of these emissions. In 2021, 82% of total energy production was derived from fossil fuels, while only 20% came from renewable sources. However, this is expected to change by 2050, with renewable energy projected to contribute 52% to electricity production in a net-zero scenario.

While renewable energy is growing, the Alvarez & Marsal study emphasizes on the importance of hydrogen, specifically green hydrogen, in decarbonizing sectors that cannot be electrified. Currently, 95 million tonnes of hydrogen are produced annually, mainly for refineries and fertilizer production, using fossil fuels and releasing high levels of CO2.

The report highlights two alternative methods for producing low-carbon hydrogen: utilizing carbon capture to create blue hydrogen and generating green hydrogen through water electrolysis using renewable electricity. This is especially important for industries like steel manufacturing, heavy-duty transport, and high-temperature manufacturing processes, where electrification is not feasible. To address these issues, it is crucial to shift towards renewable energy sources and explore the potential of green hydrogen.