India plans on providing incentives to companies that make green hydrogen fuel worth at least 10% of their expenses. This will be done under a $2 billion programme that will launch before the end of June. In an effort to reduce carbon dioxide emissions and establish itself as a significant green hydrogen exporter, this year, New Delhi authorised a 174.9 billion rupee incentive programme to promote green hydrogen.
Reportedly, the government will provide incentives worth at least 30 Indian rupees per kg for the production of green hydrogen fuel. In India, the price for manufacturing green hydrogen, which is produced using renewable energy rather than electricity derived from fossil fuels, is presently around 300 rupees per kg.
While interacting with Reuters, India’s Renewable Energy Secretary Bhupinder Singh Bhalla said that the incentives will be given out in a competitive bidding procedure, and they will tapper down every year.
“Draft concept notes on the programme have been circulated to industry chambers and associations for consultations,” he said.
The government will award roughly 130 billion rupees of the total incentive package for the industry for the production of green hydrogen, with the remaining funds going towards the production of electrolysers, which are used to electrically split hydrogen and oxygen molecules.
By 2030, India wants to have half of its installed power come from non-fossil fuel sources, and by 2070, it wants to have net-zero carbon emissions. As per the reports, the government will commence seeking incentives before this quarter ends. Moreover, under this scheme, the government anticipates funding 3.6 million tonnes of hydrogen production capability over the following three years.
According to the official, the government will release requests for proposals in two tranches for electrolysers and three tranches for green hydrogen supply. This will enable the government to better understand the market, adopt new technologies, and achieve cost savings, the official added.
Companies that generate hydrogen and ammonia as well as have renewable energy plants should be able to participate in the green hydrogen supply auction. Contracts will be given to businesses that are looking for the lowest reward.
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