India’s G20 Sherpa and former NITI Aayog chief executive, Amitabh Kant, laid out an ambitious vision for India to become a global leader and major exporter in the green hydrogen sector. The key, he emphasized, lies in a substantial influx of private investment alongside essential public funding.
Addressing the “Climate Financing” conference organized by Ease of Doing Business, Kant revealed a roadmap to reduce the cost of green hydrogen in India significantly. The immediate goal is to bring down the cost to $2.5 per kilogram by 2025 and an even more ambitious target of $1 per kilogram by 2030, down from the current $4.5 per kilogram. Achieving these targets, Kant stressed, necessitates an increase in the size and scale of hydrogen manufacturing.
Aligning with the Prime Minister’s vision for India’s energy future, Kant envisions a transition from being an energy importer to an exporter by 2047. This transformation hinges on a robust focus on renewable energy and green hydrogen production. Green hydrogen, according to Kant, has the potential to replace coal and imported gas in major industries, contributing significantly to fulfilling 80% of the country’s energy needs.
To catalyze this vision, the Indian government approved the National Green Hydrogen Mission in January 2023, with a substantial initial outlay of Rs 19,744 crore. A significant portion of this, Rs 17,490 crore, is dedicated to incentives for green hydrogen production and electrolyzer manufacturing.
Kant stressed the need for diverse financial strategies, considering the unique risks faced by developing countries like India. He emphasized the necessity of a comprehensive approach in the mobility sector, targeting 100% electrification of two-wheelers and three-wheelers by 2030.
In a stark revelation, Kant asserted that India requires a colossal investment of $10.1 trillion to achieve its net-zero emissions target by 2070. The urgency lies in mobilizing private capital alongside public funds, particularly considering India’s current shortfall in green finance. He highlighted the need for an annual clean energy investment of $260 billion from 2026 to 2030, surging to $350 billion annually in the subsequent five years.
Kant accentuated the potential of green hydrogen in India’s energy landscape, emphasizing the country’s advantageous position for competitive production. He called for the reform of multilateral development banks to align with market needs and the doubling of private capital mobilization.
