India to Invest $2 Billion in Green Hydrogen Incentive Program to Become a Major Exporter

In an effort to reduce emissions and become a major exporter of green hydrogen, India is proposing a $2 billion incentive program. Over the next five years, the 180 billion rupee plan will look to reduce production costs by 20% through increased industry scale. By 2030, it is estimated that 8 trillion rupees will be invested in green hydrogen and its derivative product, green ammonia, which can be used as fuel or for transporting hydrogen. The incentive will grant 50 rupees per kg of green hydrogen for three years, and it is expected that 70% of the production will be exported to countries like South Korea, Japan, and the European Union. The government also forecasts that global demand for green hydrogen will exceed 100 million tonnes by 2030, up from about 75 million today. Ohmium International has already built India’s first green-hydrogen factory in Bengaluru; others such as Reliance Industries, Larsen & Toubro, Greenko and H2e Power are likely to follow suit soon. Right now grey hydrogen – produced from natural gas – is being used by Indian oil refineries and fertiliser manufacturers; but with gas prices increasing this has pushed the cost of grey hydrogen up to 200 rupees per kg from 130 rupees last year.

Summary

• India is planning a $2 billion incentive programme for the green hydrogen industry to reduce production cost and become a major export player in the field.
• The Indian government expects industry to invest 8 trillion rupees in green hydrogen and its derivative green ammonia by 2030.
• The government plans for India to make 5 million tonnes of green hydrogen annually by 2030, with electrolyser manufacturing capacity of 15 gigawatts.

What is the estimated global demand for green hydrogen by 2030?

The estimated global demand for green hydrogen by 2030 is 100 million tonnes.

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Picture source: Ronnie George