India's Ambitious Goal: Leading the Global Green Hydrogen Revolution
Key Ideas
- India aims to produce 5 million tonnes of green hydrogen annually by 2030, leveraging its renewable energy potential, low production costs, and growing domestic demand across key industries.
- The country's diverse renewable energy sources, affordable electricity prices, and strong demand from sectors like fertilisers, petroleum, and steel make it an ideal location for green hydrogen production.
- The National Green Hydrogen Mission, with significant investments and strategic interventions, intends to establish India as a leader in green hydrogen production, reduce fossil fuel dependence, and create export opportunities to global markets.
- To achieve cost competitiveness at USD 2 per kilogram, India plans to reduce GST on electrolysers, scale up production for economies of scale, monetise byproducts like oxygen, and provide affordable green financing.
India is poised to become a prominent player in the global green hydrogen market, with ambitious plans to produce 5 million tonnes of green hydrogen annually by 2030. A recent report highlights India's vast renewable energy potential, low production costs, and increasing demand from key sectors like fertilisers, petroleum, and steel. The country's focus on green hydrogen is driven by the National Green Hydrogen Mission, supported by investments and incentives to accelerate growth in the sector. By transitioning from grey hydrogen to green hydrogen, India aims to decarbonise hard-to-abate sectors and reduce reliance on fossil fuel imports. While India's current green hydrogen production costs are competitive globally, further reductions are targeted to achieve price parity at USD 2 per kilogram. To attract necessary investments estimated at INR 8-10 trillion by 2030, the country plans to develop centralised green hydrogen hubs and address challenges like uncertain demand and high capital costs. Through these efforts, India not only aims to decarbonise its industries but also position itself as a significant exporter of green hydrogen, contributing to global climate goals and solidifying its leadership in the clean energy transition.
Topics
Fuel Cells
Renewable Energy
Investment
Decarbonisation
Export Potential
Energy Costs
Industrial Sectors
National Green Hydrogen Mission
Domestic Demand
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