India's Push for Green Hydrogen Revolution
Key Ideas
  • India plans to make the use of green hydrogen mandatory for refineries and fertiliser plants as part of its strategy to generate 40% of electricity through renewables by 2030.
  • Initially, these industries will be required to use 10% green hydrogen, with plans to increase this to 20%-25% in the next few years, aiming for at least 10 gigawatts of electrolyser capacity.
  • Production-linked incentives will be provided to set up electrolyser capacity, with a target of 15 gigawatts. The government believes that as green hydrogen prices decrease, it will become competitive with grey hydrogen.
  • The move towards green hydrogen is expected to slightly increase fuel and fertiliser prices. The Ministry of Power is also exploring subsidies to promote the use of green hydrogen in heavy long-haul vehicles.
India, with its ambitious renewable energy goals, is planning to make green hydrogen mandatory for refineries and fertiliser plants. Power Minister R.K. Singh announced the intention to provide federal financial support for setting up electrolysers. The aim is to increase the use of renewables to 40% for electricity generation by 2030. Initially, these industries will need to incorporate 10% green hydrogen, with plans to scale this up to 20%-25% over the next few years, requiring at least 10 gigawatts of electrolyser capacity. The government will offer production-linked incentives to establish 15 gigawatts of electrolyser capacity. While the transition may lead to a slight price increase for fuels and fertilisers, the government anticipates that as green hydrogen becomes more cost-effective, it will naturally replace grey hydrogen. Additionally, there are discussions about providing subsidies for the adoption of green hydrogen in heavy long-haul vehicles. India's proactive approach towards green hydrogen marks a significant step in its energy transition journey.
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