A new incentive plan for green hydrogen development was recently approved by the government of India. The country said yes to a $2.11 billion (174.9 billion rupees) support for the production, use and exports of green hydrogen, a move that aims to make it a major exporter in the green hydrogen market.
The funding is a first step toward establishing a capacity of making at least 5 million metric tons of green hydrogen by the end of this decade.
The incentive plan is expected to help add about 125 gigawatts of renewable energy capacity by 2030. Currently, capacity as of October 2022 is about 166 gigawatts of renewable energy. The installed power capacity in the country is around 408.72 gigawatts as of 30th November 2022 which means renewable energy takes more than 40% of the total.
According to Anurag Thakur, India’s minister for information and broadcasting, the goal of the investment initiative is “to make green hydrogen affordable and bring down its cost over the next five years. It will also help India reduce its emissions and become a major exporter in the field.”
Along with the financial help, the plan includes the establishment of new regulations and standards by the government of India for the production and use of green hydrogen. Additionally, the initiative aims to create more than a half million new jobs, attract more private investment into the sector, reduce fossil fuel imports and cut greenhouse gas emissions by 50 million metric tons.
Expanding the market for green hydrogen is a key part of the efforts to decarbonize the economy. The fuel produces no emissions when burnt for energy, which is considered by some a holy grail as an electricity resource. The industry needs more innovation in terms of efficiency of hydrogen as a fuel, so investments by governments are critical to unlock interest by the private sector as well.