Unlocking India's Green Hydrogen Potential: A Roadmap to Billions in Investment
Key Ideas
  • A new CEEW study reveals that existing state-level policies in India could unlock an additional INR ~5 lakh crore through incentives, supporting the National Green Hydrogen Mission.
  • Key states like Odisha, Maharashtra, Tamil Nadu, and others, account for 92% of the total state-level support, indicating their crucial role in shaping India's green hydrogen ecosystem.
  • The study highlights the significance of power-related incentives, totaling INR 3.12 lakh crore, in driving the viability of green hydrogen production by emphasizing the link with low-cost renewable electricity.
  • Industry stakeholders are urged to capitalize on the available financial incentives to fast-track the implementation of green hydrogen projects, positioning India as a leading destination for green hydrogen investments and exports.
A new independent study conducted by the Council on Energy, Environment and Energy(CCEW) in India has revealed the immense potential for the green hydrogen industry in the country. The study, supported by the Ministry of New and Renewable Energy (MNRE), indicates that existing state-level policies could unlock an additional INR ~5 lakh crore (USD 61 billion) to support the National Green Hydrogen Mission. The analysis also showcases how state-level provisions in 12 states complement the central outlay of this ambitious mission, potentially revolutionizing domestic production and export of green hydrogen. The report emphasizes the crucial role of green hydrogen in decarbonizing hard-to-abate heavy industries and its versatility as a clean energy carrier for various sectors. Key states such as Odisha, Maharashtra, and Tamil Nadu stand out for accounting for the majority of the state-level support, which could propel India towards achieving its 5 million tonnes annual production target by 2030. The study underscores the importance of power-related incentives in driving the viability of green hydrogen production, emphasizing the link with renewable electricity. Hemant Mallya, a Fellow at CEEW, highlighted the attractiveness of India as an investment destination for green hydrogen projects and stressed the need for streamlined clearances through effective center-state coordination. The article urges industry players to leverage the available financial incentives to actualize green hydrogen projects, enhancing India's competitiveness in the sector and paving the way for a successful transition towards a greener future.
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