India's 2024 Union Budget: Accelerating Green Hydrogen Mission
Key Ideas
  • INR 600 crore allocated to the National Green Hydrogen Mission in the 2024 Union Budget, representing a significant increase from the previous year.
  • Challenges identified for scaling the Green Hydrogen Mission include unlocking demand, de-risking finance, and balancing resource use to ensure successful implementation.
  • Focus on promoting indigenous manufacturing of green H2 electrolyzers by providing incentives to stimulate domestic production.
  • Potential economic benefits of scaling green H2 include reaching market potentials of up to USD 42.2 billion in the steel sector, USD 26.7 billion in ammonia, and USD 8.8 billion in methanol, contributing to India's economic growth and decarbonization efforts.
India's 2024 Union Budget included a significant allocation of INR 600 crore to the National Green Hydrogen Mission, a doubling from the previous year. The Mission aims to make India a global hub for green hydrogen production, aligning with the country's goal of energy independence by 2047 and achieving net zero emissions by 2070. Challenges for scaling the Mission include unlocking demand, de-risking finance, and balancing resource use. The government focuses on promoting indigenous manufacturing of green H2 electrolyzers by providing incentives to stimulate domestic production. Water desalination plants are proposed to address the water-intensive nature of hydrogen production. If scaled effectively, green hydrogen production could lead to significant economic growth in sectors like steel, ammonia, and methanol, contributing to India's decarbonization efforts.
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