A recent news article published in the Economic Times states that India plans $2 billion incentive for green hydrogen industry, according to sources.
$2 billion incentive programme for the green hydrogen industry
India is planning a $2 billion incentive programme for the green hydrogen industry, three sources told Reuters, in a bid to cut emissions and become a major export player in the field.
The 180-billion-rupee ($2.2 billion) incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years, said a senior government official and an industry manager working in renewable energy. It would do this in part by increasing the scale of the industry, they said.
The current cost in India is 300 rupees to 400 rupees per kg, said the manager.
The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects.
Hydrogen can be used as a fuel. It is made by splitting water with an electrical process, electrolysis. If the devices that do that, electrolysers, are powered by renewable energy, the product is called green hydrogen, a fuel free of greenhouse emissions.
The Indian aid could be announced in the Feb. 1 budget for the fiscal year beginning April 1, said the government official. All sources declined to be named discussing a budget proposal.
The ministries of renewable energy and finance did not respond to queries sent by Reuters.
Indian companies such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises , JSW Energy and Acme Solar have big plans on green hydrogen.
Adani, led by the world’s third-richest person, Gautam Adani, said in June that it and France’s TotalEnergies would jointly create the “world’s largest green hydrogen ecosystem”.
Green ammonia, too
The Indian government expects industry to invest 8 trillion rupees in green hydrogen and its derivative green ammonia by 2030, said the industry manager and another government official. Green ammonia is made by combining nitrogen with hydrogen using renewable energy sources; it can be used by the fertiliser industry or as a fuel or convenient means of transporting hydrogen.
The incentive for making green hydrogen is likely to be 50 rupees per kg for three years, they said.
Estimating global demand for green hydrogen
The government also plans for the country to achieve electrolyser manufacturing capacity of 15 gigawatts in phases by 2030. That would be almost 10 times current global capacity.
Indian oil refineries and fertiliser and steel plants annually use 5 million tonnes of hydrogen made from natural gas, called grey hydrogen. The process produces carbon dioxide.
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Source: Economic Times
