India approves US$2b incentive plan for green hydrogen
INDIA has approved an incentive plan of 174.9 billion rupees (S$2.8 billion) to promote green hydrogen, in a bid to become a major exporter in the field and cut carbon and greenhouse gas emissions, said Minister of Information and Broadcasting Anurag Thakur on Wednesday (Jan 4).
The move is aimed at helping India, one of the world’s biggest greenhouse gas emitters, achieve net-zero carbon emissions by 2070. Reuters reported last month about India’s plans for a green hydrogen incentive programme.
The country is aiming to produce five million tonnes of green hydrogen per year by 2030. Thakur said this would cut India’s carbon emissions by about 50 million tonnes, and lead to savings of one trillion rupees on fossil fuel imports.
“Our aim is to establish India as a global hub of green hydrogen,” he said. “We will make efforts to get at least 10 per cent of the global demand for green hydrogen (by 2030).”
Hydrogen, made by splitting water with devices called electrolysers, can be used as a fuel. Green hydrogen is produced using the same devices, but powered by renewable energy. Thakur added that India plans to build electrolyser capacity of between 60 and 100 gigawatts to support production.
The incentive plan, named the Strategic Interventions for Green Hydrogen Transition Programme, will need additional government spending of 14.7 billion rupees for pilot projects, and about 8 billion rupees for research and other expenses. Sources said the plan aims to make green hydrogen affordable and bring down its production cost, which is currently at 300 to 400 rupees per kg.
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Other sources said that fertiliser, refining and iron and steel units currently consume about five million tonnes of grey hydrogen, made using fossil fuels, per year. Grey hydrogen costs around 200 rupees per kg to produce, they added, rising from 130 rupees per kg previously on heightened fuel costs.
Indian companies such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy, ReNew Power and Acme Solar have big plans for green hydrogen. To promote its use, Thakur said obligations – such as mandatory targets for green hydrogen consumption – would be required of fertiliser units, petroleum refineries and city gas distribution networks.
The government expects investments totalling 8 trillion Indian rupees in the green hydrogen sector by 2030, the minister said, adding that incentives would be given for electrolyser manufacturing and green hydrogen production.
The US and the European Union have already approved incentives worth billions of dollars for green hydrogen projects. REUTERS
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