Unlocking India's Green Hydrogen Potential: State Policies Key to USD 61 Billion Boost
Key Ideas
  • CEEW report highlights how existing state-level policies in India can unleash USD 61 billion for the green hydrogen sector, bolstering production and global leadership.
  • Seven states contribute significantly to the potential support, with power-related incentives playing a crucial role in ensuring the competitiveness of green hydrogen production.
  • Combining central and state-level support is essential to reach India's ambitious green hydrogen target of 5 million tonnes annually by 2030.
  • The study reveals that state policies could amplify the allocated budget under the National Green Hydrogen Mission by 26 times, emphasizing the importance of leveraging this support for decarbonisation and industrial goals.
A recent report by the Council on Energy, Environment, and Water (CEEW) sheds light on India's potential to boost its green hydrogen sector with existing state-level policies. The study indicates that up to USD 61 billion could be unlocked through these policies, supporting the country in achieving its green hydrogen production goals and solidifying its position as a global leader. The report, backed by the Ministry of New and Renewable Energy (MNRE), emphasizes the crucial role of state-level financial incentives in complementing the National Green Hydrogen Mission (NGHM). Notably, states like Odisha, Maharashtra, Tamil Nadu, and others are identified as key contributors to this potential support, with a focus on power-related incentives to drive competitiveness in green hydrogen production. Hemant Mallya of CEEW stresses the importance of aligning central and state support to meet India's target of 5 million tonnes of green hydrogen annually by 2030. The study underscores the need for streamlined project clearances to accelerate the sector's development. By leveraging state policies, the report suggests that the initial budget allocated under the NGHM could be magnified significantly, with a majority of the support directed towards power-related incentives. This holistic approach not only aids in meeting green hydrogen goals but also propels India towards broader decarbonisation and green industrialisation objectives.
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