According to three sources, India is planning a $2 billion incentive programme for the green hydrogen industry in order to reduce emissions and become a major export player in the field.
According to a senior government official and a renewable energy industry manager, the 180 billion rupee ($2.2 billion) incentive aims to cut the cost of producing green hydrogen by a fifth over the next five years. They stated that it would accomplish this in part by expanding the industry’s scale.
According to the manager, the current cost in India is 300 to 400 rupees per kg.
The United States and the European Union have already approved billions of dollars in incentives for green hydrogen projects.
Hydrogen is a fuel that can be used. It is created by splitting water using an electrical process known as electrolysis. If the devices that do this, known as electrolysers, are powered by renewable energy, the product is known as green hydrogen, a fuel that emits no greenhouse gases.
According to the government official, the Indian aid could be announced in the Feb. 1 budget for the fiscal year beginning April 1. All sources declined to be identified while discussing a budget proposal.
GREEN AMMONIA, TOO
According to the industry manager and another government official, the Indian government expects industry to invest 8 trillion rupees in green hydrogen and its derivative green ammonia by 2030. Green ammonia is created by combining nitrogen and hydrogen using renewable energy sources; it can be used in the fertiliser industry, as a fuel, or as a convenient way to transport hydrogen.
According to the manager and second official, the green hydrogen proposal will be called “Strategic Intervention for Green Hydrogen Transition (SIGHT)” and will be divided into 45 billion rupees for electrolyzer manufacturing over five years and 135 billion rupees for green hydrogen and green ammonia production over three years.
They estimate that the incentive for producing green hydrogen will be 50 rupees per kg for three years.
