Estimation of the cost of Blue Hydrogen in Indian context in 2025 and 2030

The achievement of commercially viable generation of green H₂ might require some more years and meanwhile the Blue H₂ generation use shall also continue. Each country has its own infrastructure, technological skills and the associated costs (including procurement, supply chain and operation/maintenance efficiencies) and hence the cost for generation of Blue H2 is likely to be different for them. The present detailed study in Indian context is expected to bridge the gap in the literature in this regard. This study endeavors to make an assessment for the Blue H₂ generation cost specifically for India for the year 2025, compares it with cost range indicated in literature. A financial model is created to assess the levelised cost of Blue H2 generation, including the cost of carbon capture, transportation and sequestration (CCS). Since NG is the most predominant cost component as a feedstock and a source of energy for H₂ generation, sensitivity analysis is carried out to see the impact of varying its cost on the cost of blue H2. Study results indicate that at the NG price of $6/MMBTU and $11/MMBTU, the cost of Blue H₂ is estimated as $2.70 and $3.38/kg H₂ respectively in 2025, close to the prevailing cost range $2.8 to $3.5/kg as indicated in literature. These results have also been extrapolated to the year 2030 taking into consideration the likely inflationary impacts in USD to enable the policy makers to compare it with likely cost of green H₂ in 2030 as per various studies indicated in the literature to help them decide the likely further period for commercial viability for use of blue H₂.