A techno-economic evaluation of hydrogen production and delivery options for India’s agricultural landscape

Hydrogen is a promising energy carrier amidst escalating concerns of environmental sustainability. This paper presents the first region-specific techno-economic analysis of hydrogen production pathways viz., steam methane reforming, biomass gasification, and polymer electrolyte membrane (PEM) electrolysis tailored to India’s agricultural landscape. Using US-DOE models (H2A, HDSAM, and HDRSAM), the analysis investigates H2 delivery mechanisms through tube trailers, pipelines, and liquid hydrogen trucks. A case study focused on converting a Union territory’s bus fleet to hydrogen fuel cell electric vehicles is presented to examine end-use applications in the transport sector. Results show that the levelized cost of biomass gasification ($8.77/kg with pipeline delivery) is comparable to conventional steam methane reforming ($8.18/kg), suggesting a viable green alternative pathway leveraging agricultural residues. PEM electrolysis has the highest production cost ($8.31/kg), increasing to $14.31/kg with pipeline delivery. Delivery by liquid hydrogen is $1-$2/kg more expensive than gaseous pipelines. Risk analysis and Monte Carlo simulations highlight the breakdown of CAPEX and OPEX sensitivities as key cost drivers. The high CAPEX costs necessitate upfront financing, with a preferred debt-equity ratio of 60:40. Overall, this work provides strategic, data-driven insights for green hydrogen deployment in emerging economies, where agricultural resources and decentralized production might play a pivotal role.