India’s green hydrogen push and challenges
India wants to become a global hub for the production of green hydrogen, manufactured by splitting water molecules using renewable energy. It is an ambitious plan for a country whose hydrogen consumed currently is produced mostly with fossil fuels.
Although first production is expected only in 2026, India has been negotiating bilateral agreements with the European Union, Japan and other countries to start exporting the fuel.
Below are some details about India’s green hydrogen push and challenges.
PRODUCTION TARGET
India aims for annual production of 5 million metric tons of green hydrogen by 2030, which would cut about 50 million metric tons of carbon emissions and save more than $12 billion on fossil fuel imports.
Indian companies including Reliance Industries, Indian Oil, NTPC, Adani Enterprises , JSW Energy, ReNew Power and Acme Solar have made announcements for setting up a cumulative annual green hydrogen manufacturing capacity of 3.5 million metric tons.
As of now, most of the 5 million metric tons of hydrogen consumed in the country is produced with fossil fuels.
GOVERNMENT SUPPORT
In January, India approved an incentive plan of 174.9 billion rupees ($2.11 billion) to promote green hydrogen. This would be atleast 10% of the cost to produce green hydrogen.
New Delhi has also extended a waiver of transmission fees for renewable power to hydrogen manufacturing plants commissioned before January 2031.
AUCTIONS
The government has kicked off auctions under its incentive programme for manufacturing electrolysers used to make green hydrogen. Bidding for support for green hydrogen production has yet to start.
