India, with its eye on a sustainable energy future, is witnessing a surge in enthusiasm as 14 prominent companies, including Acme Cleantech, Reliance Industries, and JSW Energy, submit bids for incentives under the ambitious Green Hydrogen Mission.
This strategic move aligns with India’s National Green Hydrogen Mission, a comprehensive plan to revolutionize the country’s energy sector and reduce dependence on fossil fuels.
The primary objective of India’s National Green Hydrogen Mission is to usher in a new era of sustainable energy. With an initial investment of INR 197.44 billion, the mission aims to achieve a green hydrogen production capacity of at least 5 million metric tonnes per year by 2030. This aligns with the broader vision of adding 125 gigawatts of renewable energy capacity and creating over 600,000 jobs.
The mission has sparked intense competition, with 20 companies vying for incentives related to electrolyser manufacturing. Notable participants include Adani Group, Larsen & Toubro, and Waaree Energies. Electrolysers play a pivotal role in the green hydrogen production process, facilitating the splitting of hydrogen and energy molecules through electrical means.
The response to India’s call for proposals has exceeded expectations. Bids for green hydrogen production now surpass the initially invited 0.45 million tons, and manufacturing capacity bids for electrolysers have doubled, reaching 3.4 gigawatts. The government’s incentive program, offering at least 10 percent of production costs, has ignited a robust push toward sustainable practices in the energy sector.
The Indian government’s financial incentive program encompasses two key components: incentivizing the manufacturing of electrolysers and supporting the production of green hydrogen. With an outlay of INR 174.90 billion, the program offers INR 4,400 per kilowatt as an incentive for each tranche covering a capacity of 1,500 megawatts.
Green hydrogen, as per the Indian government’s definition, involves hydrogen production utilizing renewable energy, including methods like electrolysis or biomass conversion. The government has set stringent standards for non-biogenic greenhouse gas emissions, ensuring an eco-friendly and sustainable approach to green hydrogen production.
Beyond the impressive production and capacity figures, the National Green Hydrogen Mission aims to create export opportunities, decarbonize sectors, reduce dependence on imported fossil fuels, and stimulate indigenous manufacturing capabilities. The strategic interventions, pilot projects, and research and development initiatives contribute to India’s emergence as a leader in the green hydrogen sector.