India Gives Go-ahead for $2B incentive plan for Green Hydrogen Industry

Sarita Chaganti Singh
Wednesday, January 4, 2023

India has approved an incentive plan of 174.9 billion rupees ($2.11 billion) to promote green hydrogen in a bid to cut emissions and become a major exporter in the field, the information minister said on Wednesday.

The move is targeted to help India, one of the world's biggest greenhouse gas emitters, achieve net-zero carbon emissions by 2070. Reuters reported last month about India's plans for a green hydrogen incentive programme. 

The country aims for annual production of 5 million tonnes of green hydrogen by 2030, cutting about 50 million tonnes of carbon emissions and saving one trillion rupees on fossil fuel imports, the minister, Anurag Thakur, told reporters.

"Our aim is to establish India as a global hub of green hydrogen," Thakur said. "We will make efforts to get at least 10% of the global demand for green hydrogen (by 2030)."

Hydrogen, made by splitting water with an electrical process called electrolysis, can be used as a fuel. If the devices that do that, electrolysers, are powered by renewable energy, the product is called green hydrogen.

India also plans to build electrolyser capacity of 60 gigawatts to 100 gigawatts to help produce green hydrogen, Thakur said.

The incentive by the government aims to make green hydrogen affordable and bring down its production cost, currently at 300 rupees to 400 rupees per kg, according to industry sources. 

Fertilizer, refining and iron and steel units currently consume grey hydrogen, made through fossil fuels, of 5 million tonnes per annum, according to industry sources. Grey hydrogen costs around 200 rupees per kg to produce, sources added, as gas costs have pushed the prices from 130 rupees per kg.

To promote the use of green hydrogen, Thakur said obligations - such as mandatory targets for green hydrogen consumption - would be required of fertilizer units, petroleum refineries, and city gas distribution networks. 

The government expects investments totaling 8 trillion Indian rupees ($96.65 billion) in the green hydrogen sector by 2030, Thakur said, adding that incentives will be given for manufacturing of electrolysers and production of green hydrogen.

The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects.

Indian companies such as Reliance Industries  Indian Oil, NTPC, Adani Enterprises, JSW Energy, ReNew Power, and Acme Solar have big plans for green hydrogen.

The government's incentive program, named the "Strategic Interventions for Green Hydrogen Transition Programme (SIGHT)", will also need additional government spending of 14.66 billion rupees for pilot projects and about 8 billion rupees towards research and other expenses.

($1 = 82.8000 Indian rupees)


 (Reporting by Sarita Chaganti Singh, writing by Shivam Patel; editing by Sudipto Ganguly and Bernadette Baum)

Categories: Hydrogen Green Hydrogen

Related Stories

Turkish Petroleum, Chevron Discuss Joint Oil and Gas Exploration

ADNOC Gas Signs $3B LNG Supply Deal with India’s HPCL

Woodside to Supply LNG to JERA During Japan's Winter Peak

OceanMight Gets Petronas’ Offshore Construction Job in Malaysia

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

South Korean Firm Buys Into Indonesian Offshore Oil Block

Current News

Australia and Timor-Leste Push to Advance Greater Sunrise Gas Field

MODEC, Eld Energy Partnership Targets Low-Carbon FPSO Power

JERA Lifts First LNG Cargo From Barossa Gas Project in Australia

Inpex Moves to Accelerate Indonesia’s Abadi LNG Project

Chevron in Final Talks with Eneos, Glencore on Singapore Assets Sale

Seadrill Firms Up Offshore Drilling Workload with Multi-Region Contract Awards

Turkish Petroleum, Chevron Discuss Joint Oil and Gas Exploration

ADNOC Gas Signs $3B LNG Supply Deal with India’s HPCL

Samos Energy Buys Suksan Salamander FSO from Altera Infrastructure

Philippines Makes First Offshore Gas Discovery in Over a Decade

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com