Indian Economy News

India plans $2 billion incentive for green hydrogen industry, says report

  • IBEF
  • December 28, 2022

By 2030, the Indian Government plans to invest US$ 96 billion (Rs. 8 trillion) in green hydrogen and its derivative green ammonia. Moreover, the government is planning a US$ 2.2 billion (Rs 180 billion) incentive in the upcoming budget, that aims to reduce the production cost of green hydrogen by a fifth, over the next five years. Green hydrogen is produced by splitting water using electrolysis. The current cost of green hydrogen is around US$ 3.62 (Rs 300) to US$ 4.83 (Rs 400) per kg and the incentive provided by the government is expected to be US$ 0.60 (Rs 50) per kg for 3 years.

Indian companies like Adani have partnered with a French multinational, TotalEnergies to create the world’s greatest green hydrogen ecosystem. Many more companies like Reliance Industries, Indian Oil, NTPC, JSW Energy, and Acme Solar have big plans for green hydrogen.

Strategic Intervention for Green Hydrogen Transition (SIGHT), a green hydrogen proposal would be divided into the manufacturing of electrolysers for US$ 543 million (Rs. 45 billion) in five years and US$ 1.63 billion (Rs 135 billion) for green ammonia and green hydrogen production for the next three years. Moreover, the estimated global demand for green hydrogen is expected to exceed 100 million tonnes by 2030. Thus, the Indian government seeks to export 70% of the production to foreign countries (like South Korea, Japan, and European Union) and plans to develop 5 million tonnes of green hydrogen annually by 2030 along with achieving a capacity of 15 gigawatts of electrolyser manufacturing by 2030.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.