India working on USD-2.2bn incentive plan for green hydrogen - report

The Indian government is working to devise an incentive programme that would allocate some INR 180 billion (USD 2.17bn/EUR 2.04bn) to develop the country’s green hydrogen industry, Reuters reports.

The plan is aimed at helping cut India’s carbon dioxide (CO2) emissions, a senior government official has told the news agency. With the programme, the government is seeking to reduce the cost of producing green hydrogen by a fifth in the next five years and make the country a major export hub.

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The incentives are supposed to be announced at the start of February when the budget for the new fiscal year starting April 1 is released.

According to the government representative, it currently takes between INR 300 and INR 400 to produce a kilogram of green hydrogen in India.

In August 2021, the Indian government launched a national hydrogen framework in a bid to support climate targets, setting an annual production goal of 5 million tonnes by 2030. Since then a series of large companies have unveiled investment plans for the sector.

Among them are France’s TotalEnergies SE (EPA:TTE) and Adani New Industries Ltd (ANIL), which in June pledged to create what they say would be "the largest green hydrogen ecosystem in the world," underpinned by 30 GW of renewables. Meanwhile, ABC Cleantech intends to spend INR 500 billion on building a green hydrogen plant with 5 GW of renewable energy supply in Karnataka.

(INR 10 = USD 0.121/EUR 0.113)