India's Green Hydrogen Revolution: Funding for Massive Electrolyser Manufacturing Capacity
Key Ideas
- India to allocate viability gap funding for 3,000 MW annual electrolyser manufacturing capacity, supporting the National Green Hydrogen Mission.
- The initiative aims to reduce dependency on fossil fuels, create over six lakh jobs, and attract significant investments in the green hydrogen sector.
- The funding is part of broader efforts to promote clean energy, with goals to establish green hydrogen production capacity and meet climate commitments.
- Strategic interventions and financial incentives under the program will drive domestic electrolyser manufacturing and green hydrogen production in India.
In a significant move towards green energy transition, the Indian government has announced plans to provide viability gap funding for electrolyser manufacturing with a capacity of 3,000 MW per annum. This funding is a crucial step in supporting India's National Green Hydrogen Mission, which aims to promote green hydrogen production and reduce reliance on fossil fuels. With an initial outlay of Rs 19,744 crore, the mission targets a green hydrogen production capacity of at least 5 million metric tons per annum. Additionally, India plans to add 125 GW of renewable energy capacity to its energy mix sustainably.
The National Green Hydrogen Mission is expected to catalyze investments in the green hydrogen sector, with a projection of attracting over Rs 8 lakh crore in total investments. The initiative will also lead to the creation of over six lakh jobs and contribute significantly to reducing fossil fuel imports. The government's strategic program, SIGHT, offers financial incentives for domestic electrolyser manufacturing and green hydrogen production. Pilot projects will be supported in key sectors, and areas with high hydrogen production potential will be developed as Green Hydrogen Hubs.
India is making progress towards meeting its climate commitments by aiming to achieve 500 GW of non-fossil electricity capacity by 2030. As of October 31, 2024, the country has already installed 211.40 GW of non-fossil power capacity, showcasing substantial advancements towards a sustainable energy future.
Topics
India
Renewable Energy
Investment
Energy Transition
Green Technology
Job Creation
Economic Growth
Government Initiative
Climate Change Mitigation
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