ndia's Green Hydrogen Revolution Is A Leap Towards Carbon Neutrality

India’s Green Hydrogen Revolution Is A Leap Towards Carbon Neutrality

India has officially entered the race to embrace the green hydrogen revolution

Taking significant steps to produce cost-effective green hydrogen. The Indian Ministry of New and Renewable Energy (MNRE) has unveiled its ambitious Green Hydrogen Policy, aiming to make 10 million tons of green hydrogen by 2030. Half of this green hydrogen will be used as a substitute for fossil fuels in transport and hard-to-decarbonize industrial sectors. At the same time, the remaining 5 million tons will be designated for export. This initiative is India’s answer to the global shift towards green energy, a trend gaining momentum worldwide.

India is not alone in its pursuit of green hydrogen. In mid-October, the United States, under the Biden administration, unveiled its national green hydrogen plans, allocating approximately $50 billion to this endeavor. According to the International Energy Agency (IEA), green hydrogen should account for about 10% of total energy consumption by 2050. Achieving this requires a significant financial commitment, with an estimated $380 billion in hydrogen investments needed by the end of this decade, in addition to the $320 billion already announced.

Jorgo Chatzimarkakis, CEO of Hydrogen Europe, stated that the European Union (EU) has noted this message, setting ambitious global clean hydrogen production targets and extending their projects beyond the EU’s 27-country bloc.

A Comprehensive Approach

India recognizes the complexity of its green hydrogen endeavor and has adopted a whole-of-government approach to make this vision a reality. To facilitate coordination, an Empowered Group has been established, aiming to align efforts across various departments to develop financial incentives and programs. The ultimate goal is to create an ecosystem and domestic capacities that will enable rapid scaling of green hydrogen production and usage by the end of this decade.

This accelerated approach aligns with India’s broader mission to reach net-zero emissions. Green hydrogen offers a promising solution as a technically feasible substitute for fossil fuels in industrial processes and transportation where renewable electricity falls short.

To incentivize green hydrogen production, the Indian government has allocated $2.52 billion (Rs 13,050 crores) in financial support, while an additional $828 million (Rs 4,440 crores) is earmarked for the production of electrolyzers. The economic incentives for green hydrogen production will start at $0.93 per kilogram (Rs 50) in the first year, gradually reducing to $0.75 (Rs 40) in the second year and further down to $0.56 (Rs 30) in the third and final year.

Similarly, incentives for electrolyzer production will follow a graded reduction over five years. Companies will be eligible for these incentives through a competitive bid process, promoting a robust and competitive industry landscape.

The green hydrogen race is well underway, with numerous private firms, including Reliance, Adani, ReNew Power, and L&T, actively participating. Reliance, for instance, aspires to produce green hydrogen for just $1 per kilogram by 2030. In addition to private sector engagement, ten states, led by Gujarat but also including Karnataka, Maharashtra, and Kerala, have been identified as potential green hydrogen production hubs.

India’s green hydrogen journey extends beyond the production of green hydrogen itself. The nation envisions the production of green ammonia using green hydrogen, offering various opportunities for sustainable agriculture, eco-friendly shipping, and clean electricity generation, especially during peak demand periods.

India’s Vision for 2030

India’s mission is to become a globally competitive producer and consumer of green hydrogen by 2030, positioning itself as a critical player in the emerging green energy landscape. This ambitious endeavor sets the stage for India’s transition towards becoming a carbon-neutral economy.

India’s commitment to green hydrogen signifies its dedication to sustainability and the fight against climate change. The bold investments and incentives provided by the government, combined with the enthusiasm of private players, paint a promising picture for a green hydrogen-powered future. As the nation builds its green hydrogen capabilities, it takes another significant step towards a more sustainable and competitive global future.

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