India on Track to Surpass $100 Billion Green Hydrogen Investment Target
Key Ideas
- India is poised to exceed its goal of attracting $100 billion in investments for green hydrogen and electrolyser manufacturing, with commitments already reaching $70 billion.
- The World Bank has extended a second $1.5 billion loan to support India's national green hydrogen mission, bringing the total assistance to $3 billion, focusing on boosting renewable energy penetration and incentivizing battery energy storage solutions.
- Reforms backed by the development finance assistance are expected to lead to the production of 450,000 metric tons of green hydrogen and 1500MW of electrolyzers per year, along with a significant increase in renewable energy capacity and a reduction of emissions by 50 million tons annually.
- The World Bank Country Director highlighted the need for the Indian government to facilitate access to land, encourage bulk purchase agreements, invest in talent for the green hydrogen sector, and ensure prompt conflict resolution to attract more investors.
The World Bank India Head, Auguste Tano Kouame, in an interview with CNBC-TV18, expressed optimism about India's progress towards becoming a leading global producer of green hydrogen. India has already secured $70 billion in investments for green hydrogen and electrolyser manufacturing, well on its way to surpassing the $100 billion target. The World Bank extended a second $1.5 billion loan to support India's national green hydrogen mission, focusing on boosting renewable energy penetration and incentivizing battery energy storage solutions. The assistance aims to promote the production of green hydrogen and electrolyzers, with projections indicating significant capacity growth and emissions reduction. Kouame emphasized the importance of government support in facilitating land access, encouraging bulk purchase agreements, investing in talent, and ensuring efficient conflict resolution to attract more investors. The reforms are expected to enhance renewable energy capacity, reduce emissions, and develop a national carbon credit market. Kouame also called for further investments in green energy in the upcoming Union Budget to drive climate adaptation, job creation, inclusivity, and export growth.