TERI Unveils Policy Brief on Green Hydrogen’s Role in India’s Energy Shift
TERI’s new policy brief highlights green hydrogen’s potential to accelerate India’s clean energy transition, focusing on industrial and transportation sectors. The brief outlines key strategies, including cost reduction, R&D, and public-private collaborations, to support the Green Hydrogen Mission.
November 09, 2024. By EI News Network
Dwelling on governemnt's initiaitvies, the brief said that the Green Hydrogen Mission, approved by the Union Cabinet in January 2022, sets an ambitious target of producing 5 million tons of green hydrogen annually by 2030, with the potential to increase to 10 million tons as global markets grow. The Indian government has allocated INR 19,744 crore for the mission, including INR 17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, INR 1,466 crore for pilot projects, INR 400 crore for R&D, and INR 388 crore for other components.
The first phase of the SIGHT Scheme, awarded in January 2024, aims to facilitate the production of 412,000 tons of green hydrogen annually through 10 companies. Additionally, the Ministry of New and Renewable Energy (MNRE) launched the Component II Incentive Scheme for an additional 450,000 tons. The Solar Energy Corporation of India (SECI) has issued tenders for green hydrogen hubs, each with a minimum capacity of 100,000 tons per annum, offering financial assistance of up to INR 100 crore per hub.
It noted that India’s public sector undertakings (PSUs) are already leading the charge. GAIL has started hydrogen blending in city gas distribution, while NTPC has launched hydrogen-blended PNG supply in Surat and operates hydrogen-based fuel cell electric buses in Leh and Greater Noida. Indian Oil is setting up pilot green hydrogen plants using water electrolysis and biomass gasification to power its fuel cell buses.
The brief further pointed out that several States are also making strides in green hydrogen production. Maharashtra targets 500,000 tons of green hydrogen by 2030 with an INR 8,000 crore budget and several incentives. Uttar Pradesh plans to blend 20 percent green hydrogen by 2028, reaching 100 percent by 2035. Other states like Rajasthan, Andhra Pradesh, Gujarat, Punjab, and Kerala are advancing policies to support large-scale production and infrastructure development. Major private sector players like Reliance and Adani are also investing heavily to reduce production costs and speed up India’s green hydrogen goals.
"As global demand for low-carbon fuels grows, India is positioning itself as a key exporter of green hydrogen, contributing to international climate goals," brief noted. It also underscores the importance of a comprehensive roadmap for research and development (R&D) to reduce production costs, making India one of the lowest-cost producers of green hydrogen, similar to its success in solar power.
Furthermore, the brief policy provides key recommendations to ensure India meets its net-zero emissions target by 2070. The report suggests accelerating the Green Hydrogen Mission through competitive procurement, modelled after the National Solar Mission, and establishing Special Purpose Vehicles (SPVs) to facilitate green hydrogen procurement for downstream projects. This strategy will attract long-term private investment and drive innovation. The collaboration between green hydrogen developers and industries like fertiliser, steel, and transport is crucial for integrating hydrogen into these sectors, enhancing efficiency, and lowering costs.
The report also calls for enhanced financial mechanisms like subsidies and soft loans to ease the capital burden on developers. A robust policy and regulatory framework, including clear safety, environmental, and technical guidelines, is essential for creating a conducive environment for green hydrogen development.
India’s green hydrogen ambitions are set to play a pivotal role in both the country’s decarbonisation and its emergence as a global leader in clean energy.
please contact: contact@energetica-india.net.
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