Energy Storage and Applications

Cesaro, Z.; Bramstoft, R.; Bañares-Alcántara, R.; Ives, M.C. Facilitating India’s Deep Decarbonisation Through Sector Coupling of Electricity with Green Hydrogen and Ammonia. Energy Storage Appl. 2025, 2, 4. https://doi.org/10.3390/esa2020004

Green hydrogen and ammonia are forecast to play key roles in the deep decarbonization of the global economy. Here we explore the potential of using green hydrogen and ammonia to couple the energy, agriculture, and industrial sectors with India’s national-scale electricity grid. India is an ideal test case as it currently has one of the most ambitious hydrogen programs in the world, with projected electricity demands for hydrogen and ammonia production accounting for over 1500 TWh/yr or nearly 25% of India’s total electricity demand by 2050. We model the ambitious deep decarbonization of India’s electricity grid and half of its steel and fertilizer industries by 2050. We uncover modest risks for India from such a strategy, with many benefits and opportunities. Our analysis suggests that a renewables-based energy system coupled with ammonia off-take sectors has the potential to dramatically reduce India’s greenhouse emissions, reduce requirements for expensive long-duration energy storage or firm generating capacity, reduce the curtailment of renewable energy, provide valuable short-duration and long-duration load-shifting and system resilience to inter-annual weather variations, and replace tens of billions of USD in ammonia and fuel imports each year. All this while potentially powering new multi-billion USD green steel and maritime fuel export industries. The key risk for India in relation to such a strategy lies in the potential for higher costs and reduced benefits if the rest of the world does not match their ambitious investment in renewables, electrolyzers, and clean storage technologies. We show that such a pessimistic outcome could result in the costs of green hydrogen and ammonia staying high for India through 2050, although still within the range of their gray counterparts. If on the other hand, renewable and storage costs continue to decline further with continued global deployment, all the above benefits could be achieved with a reduced levelized cost of hydrogen and ammonia (10–25%), potentially with a modest reduction in total energy system costs (5%). Such an outcome would have profound global implications given India’s central role in the future global energy economy, establishing India’s global leadership in green shipping fuel, agriculture, and steel, while creating an affordable, sustainable, and secure domestic energy supply.