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India’s green hydrogen industry

  • Category
    Economy
  • Published
    30th Dec, 2022

Context

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 costin India is Rs 300 to Rs 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 Rs 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

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.

Green Hydrogen Policy

  • Under the policy, the government is offering to set up manufacturing zones for productionconnectivity to the ISTS (Inter-State Transmission System) on a priority basis, and free transmission for 25 years if the production facility is commissioned before June 2025.

Green hydrogen is India:

  • In order to become energy independent by 2047, the government stressed the need to introduce green hydrogen as an alternative fuel that can make India the global hub and a major exporter of hydrogen.
  • India has just begun to generate green hydrogen with the objective of raising non-fossil energy capacity to 500 gigawatts by 2030.
  • In April 2022, the public sector OIL, which is headquartered in eastern Assam’s Duliajan, set up India’s first 99.99% pure green hydrogen pilot plant in keeping with the goal of “making the country ready for the pilot-scale production of hydrogen and its use in various applications”.
    • The plant was set up at the petroleum exploration major’s Jorhat pump station, also in eastern Assam.
    • Powered by a 500 KW solar plant, the green hydrogen unit has an installed capacity to produce 10 kg of hydrogen per day and scale it up to 30 kg per day.

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