India likely to introduce $2 billion incentive for green hydrogen industry: Report

ENA Sectors 2022-12-27 12:33:09 New Delhi, Dec 27 (KNN) In a bid to cut emissions and become a major export player of Green Hydrogen, India is planning a USD 2 billion incentive programme for the industry, three sources told Reuters. The incentives worth 180-billion-rupee ($2.2 billion) will aim to reduce the production cost of green hydrogen by a fifth over the next five years, said a senior government official and an industry manager working in renewable energy. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> The current cost in India is 300 rupees to 400 rupees per kg, said the manager. As per the report, the incentive could be announced in the upcoming budget for the fiscal year, said the government official. All sources declined to be named discussing a budget proposal. The ministries of renewable energy and finance did not respond to queries sent by Reuters. This move by the government will help the green hydrogen industry raise their standing in the global market as other nations such as the United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects. Companies such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy and Acme Solar have big plans on green hydrogen. The government expects industry to invest 8 trillion rupees in green hydrogen and its derivative green ammonia by 2030, said the industry manager and another government official. The green hydrogen proposal is likely to be called Strategic Intervention for Green Hydrogen Transition (SIGHT) and will be split into 45 billion rupees for electrolyser manufacturing for five years and the 135 billion rupees for green hydrogen and green ammonia production for three years, the manager and second official said. The incentive for making green hydrogen is likely to be 50 rupees per kg for three years, they said. India aims to sell 70 per cent its production to countries such as South Korea, Japan and in the European Union, an industry official said, adding that derivatives, including green ammonia, had an equally strong demand. (KNN Bureau) 31718 https://knnindia.co.in/news/newsdetails/sectors/india-likely-to-introduce-2-billion-incentive-for-green-hydrogen-industry-report 2022-12-27 12:33:09 knnindia.co.in India likely to introduce $2 billion incentive for green hydrogen industry: Report