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Green Hydrogen H2 News

India Explores Green Hydrogen Supply Deals with Singapore and EU

Anela DoksoBy Anela Dokso06/07/20233 Mins Read
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India is actively engaging in discussions to supply more than 11 metric tons of green hydrogen annually to Singapore and the European Union (EU), signaling its commitment to become a major green hydrogen exporter. In return, the two countries are expected to invest in India’s green energy projects.

This development highlights the growing global interest in hydrogen as a clean energy source and underscores India’s ambition to play a significant role in the transition away from fossil fuels.

According to Reuters sources, a potential India-EU green hydrogen deal could revolve around EU companies earning carbon credits by investing in clean energy projects within India. The EU, in turn, could receive a supply of approximately 10 million metric tons of green hydrogen annually. Carbon credits, which function as permits for greenhouse gas emissions, incentivize companies to reduce their carbon footprint by investing in environmentally friendly initiatives.

Carbon credits provide a financial incentive for businesses to reduce their carbon emissions. Each credit allows the holder to emit one ton of carbon dioxide or the equivalent amount of other greenhouse gases. These credits are issued in a fixed quantity but decrease over time, encouraging companies to adopt greener practices and reduce their environmental impact.

While Singapore considers purchasing 1 to 1.5 million metric tons of green hydrogen annually, the country is particularly interested in acquiring green ammonia, a fuel derived from green hydrogen. This demonstrates the diverse applications and potential of hydrogen as a clean energy carrier.

India’s commitment to green hydrogen production is evident through its government’s approval of a $2.13 billion incentive plan and a target to produce 5 million metric tons of green hydrogen by 2030. Major Indian companies like Reliance Industries, Indian Oil, and Adani Enterprises have already unveiled ambitious plans to capitalize on the growing demand for green hydrogen.

The global shift towards hydrogen reflects the urgent need to combat climate change and reduce reliance on fossil fuels. Hydrogen, with its potential to serve as a clean and versatile energy source, offers an opportunity to decarbonize various sectors, including transportation, industry, and power generation.

India’s discussions with Singapore and the EU to supply green hydrogen exemplify the country’s determination to lead the clean energy transition. The potential deals not only showcase the rising global interest in hydrogen but also reinforce India’s commitment to reducing carbon emissions and building a sustainable future. As nations worldwide turn to hydrogen as a key solution to address climate change, the development and export of green hydrogen present significant opportunities for India to contribute to a greener and more sustainable world.

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