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 production, connectivity 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.