India said to plan a $2 bn incentive for the green hydrogen industry

• India is planning a $2 billion incentive programme for the green hydrogen industry, in a bid to cut emissions and become a major export player in the field.

Key Objective:

• Reducing the production cost of green hydrogen by a fifth over the next five years.
  • The current cost in India is ?300 to ?400 per kg.
    • This will be done in part by increasing the scale of the industry.
    • The incentive for making green hydrogen is likely to be ?50 per kg for three years.

Strategic Intervention for Green Hydrogen Transition (SIGHT)

• The green hydrogen proposal is likely to be called "Strategic Intervention for Green Hydrogen Transition (SIGHT)".
• It will be split into Rs 45 billion for electrolyzer manufacturing for five years and
• The Rs 135 billion for green hydrogen and green ammonia production for three years.

How is the west approaching it?

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

About Green Hydrogen:

• Hydrogen can be used as fuel.
• It is made by splitting water with an electrical process, electrolysis.
• If the devices that do that - electrolyzers - are powered by renewable energy, the product is called green hydrogen, a fuel-free of greenhouse emissions.

Major Indian companies Involved

• Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy, and Acme Solar have big plans for green hydrogen.
• The Adani Group has partnered with France's TotalEnergies to create a green hydrogen ecosystem.

Green-hydrogen factories in India:

• S.-based Ohmium International has commissioned India's first green-hydrogen factory in Bengaluru.
• Reliance Industries, Larsen & Toubro, Greenko, and H2e Power last year announced plans to build gigawatt-scale factories.

Focus on Green ammonia

• Projections:
• Industry to invest ?8 trillion in green hydrogen and its derivative green ammonia by 2030.
• Global demand for green hydrogen will exceed 100 million tonnes by 2030. Presently it is 75 million tonnes.

Targets:

• India aims to sell 70% of its production to countries such as South Korea, Japan, and the European Union.
• To achieve an electrolyzer manufacturing capacity of 15 gigawatts in phases by 2030. That would be almost 10 times the current global capacity.
• To make 5 million tonnes of green hydrogen annually by 2030.