New Delhi: Power behemoth NTPC Limited is considering setting a US$2 benchmark cost for green hydrogen production by 2025-26, said NTPC Renewable Energy Ltd (NREL) Chief Executive Officer (CEO) Mohit Bhargava on Thursday. Speaking at a panel discussion during the ET Energy Solar Power Congress, Bhargava said, "Internally, we are discussing having a $2 benchmark till 2025-26, that's when we hope to have green hydrogen at less than $2… But to make that happen, the cost of electrolysers and power is important," said Bhargava.
Bhargava said that green hydrogen is slated to play a very important role in charting India's energy transition, along with solar power. He added that in order to bring down the cost of green hydrogen production to US$2, power tariff will have to be lower than Rs 2. "We will have to ensure that the cost of power has to be in a range that does not exceed Rs 2 or probably closer to Rs 1.50 to Rs 1.75 on the longer run, only then we will be able to reach $2 hydrogen cost," the NREL CEO said.
International Solar Alliance's (ISA) Director General Ajay Mathur, who was also part of the panel at the virtual event, said asserted that hydrogen is the only carbon-free source. "Today green hydrogen costs about US$5.5 a kg, but grey hydrogen made from natural gas costs less than US$2 a kg. It is, therefore, important that till 2030, we are able to reduce the price of electrolysers. It is possible that we can move to net-zero, but it will take a lot of technological policy interventions for us to reach there," said Mathur.
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