India's Green Hydrogen Revolution: Government Support to Drive Costs Down
Key Ideas
  • India's green hydrogen costs are forecasted to decrease by up to 40%, potentially reaching Rs 260-310 per kg, due to government support and incentives.
  • The government is providing various incentives such as cheap renewable electricity, waived transmission charges, lower GST rates, and cost reductions for electrolyser manufacturers to promote green hydrogen production.
  • The Institute for Energy Economics and Financial Analysis report highlighted the need for refinements in the green hydrogen scheme to attract investments, ensure project viability, and create a sustainable supply chain.
  • India's National Green Hydrogen Mission aims to achieve 5 million tonnes of annual green hydrogen production capacity by 2030, with an overall outlay of ₹19,744 crores, signaling a significant step towards reducing dependence on fossil fuels.
India is poised for a significant shift in its energy landscape as the government's support and incentives are expected to drive down green hydrogen costs by up to 40%. The Institute for Energy Economics and Financial Analysis report forecasts a substantial reduction in the levelized cost of green hydrogen in India, potentially reaching Rs 260-310 per kg. These cost reductions are attributed to various government initiatives, including providing cheap renewable electricity to hydrogen manufacturers, waiving transmission charges, lowering GST rates, and offering incentives for electrolyser manufacturers. While the green hydrogen scheme has been well-received by industry players, the report emphasizes the need for refinements to ensure long-term investment attractiveness and project viability. India's National Green Hydrogen Mission, launched in 2023 with a substantial outlay, aims to establish a significant green hydrogen production capacity by 2030, aligning with the country's ambitions in transitioning towards sustainable energy sources. The mission not only targets reducing reliance on fossil fuels but also aims to benefit sectors like agriculture, transport, and manufacturing. With a commitment to reaching net-zero emissions by 2070, India's green hydrogen revolution signifies a crucial step towards achieving its climate goals and fostering a more sustainable energy future.
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