India: A $2 Billion Incentive For Green Hydrogen

India is proposing a US$2 billion (RM8.85 billion) incentive scheme for the green hydrogen industry in order to reduce emissions and become a significant export player in the field.

According to a senior government official and a renewable energy sector manager, the 180-billion-rupee (U$2.2 billion or RM9.73 billion) incentive intends to cut the cost of producing green hydrogen by a fifth over the next five years.

They stated that it will accomplish so in part by expanding the industry’s scope. According to the management, the current pricing in India is 300 to 400 rupees (RM16 to RM21) per kg.
The United States and the European Union (EU) have officially issued billions of euros in subsidies for green hydrogen projects.

Hydrogen can be used as a fuel. It is produced by spilliting water using electrolysis. If the equipment that perform this, known as electrolysers, are driven by renewable energy, the result is green hydrogen, a fuel that emits no greenhouse gases.

According to the government official, the Indian help could be disclosed in the February 1 budget for the fiscal year beginning April 1.

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Green Hydrogen A Priority

Green hydrogen is a priority for Indian corporations such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy, and Acme Solar.

Adani, led by the world’s third-richest person, Gautam Adani, claimed in June that it and France’s Total Energies would jointly construct the “nation’s biggest green hydrogen ecosystem”.
According to the industry manager, the Indian government wants industry to invest eight trillion rupees (RM427bil) in green hydrogen and its derivative green ammonia by 2030.

Green ammonia is created by mixing nitrogen and hydrogen using renewable energy sources; it can be utilised in the fertiliser business, as a fuel, or as a practical way to transport hydrogen.

The green hydrogen proposition is expected to be titled “Strategic Intervention for Green Hydrogen Transition” and will be divided into 45 billion rupees (RM2.4bil) for electrolyser production over a five-year period and 135 billion rupees (RM7.21bil) for green hydrogen and green ammonia production over a three-year period.

For three years, the incentive for producing green hydrogen is projected to be 50 rupees (RM2.67) per kilogramme.
According to an industry official, India intends to sell 70% of its output to nations such as South Korea, Japan, and the European Union.