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

McDermott Concludes Work at PTTEP’s Kikeh Gas Field Off Malaysia

ABS Approves Hanwha Ocean’s FPSO Design

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Seatrium Delivers Fifth Jack-Up to Borr Drilling

CRC Evans Secures Work at Qatar’s Largest Offshore Oil Field

Valeura Energy Consolidates Thai Oil and Gas Assets

TotalEnergies Inks 15-Year LNG Supply Deal with China’s Sinopec

Sunda Energy Pushes Back Chuditch-2 Appraisal Well Drilling Date

ABS Takes Charge of Digital Twin Project for Petrobras’ FPSOs

Current News

Petronas Inks Two More PSCs for Bid Round 2024, Launches Round 2025

CNOOC Brings Online Second Phase of Luda Oil Field Project in Bohai Sea

Japan's Japex Shifts Back to Oil and Gas Investments

Tokyo Gas Enters LNG Market in Philippines

ONE Guyana FPSO En Route to ExxonMobil’s Yellowtail Field

SLB Names Raman CSO, CMO

Eco Wave Finds Partner for Wave Energy Project in India

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

ONGC and BP Sign Deal to Boost Production at India's Largest Offshore Oil Field

SOV/CSOV Shipbuilding Market: Strong Growth, Volatility in Coming 5 Years

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