To boost domestic production and export of green hydrogen or ammonia, the government should give incentives similar to those offered under production linked incentive (PLI) programs. Some of the initiatives, such as export incentives, may be included in the planned National Green Hydrogen Mission (NGHM).
According to a senior government official, the incentives might be granted for a five-year period to support a minimum of 10 MMTPA (million metric tonnes per year) of green hydrogen or green ammonia exports by 2030 and a 50 MMTPA green hydrogen or ammonia market by 2030 in the nation. “The government may help with a PLI program for electrolyzer manufacture and components such as electrodes and membranes, as well as production of H2 storage, NH3 storage, and NH3 loop,” the official noted.
India is seeking green ammonia exports to established countries like Japan, the United States, South Korea, and Europe, where demand is expected to exceed 300 MMTPA by 2030.
The government will also establish technical safety criteria for manufacturing and exports, as well as industrial corridors for the creation of green hydrogen or ammonia, as well as land aggregation in significant solar-power-producing states.
“We are resolved to bring size and scale to green hydrogen and ammonia production, reduce the price down from $4 per kilogram to $1 per kg, and make India a global champion of production and exports,” Amitabh Kant, CEO of NITI Aayog, told ET.
These incentives could be in addition to the benefits recently announced by the power ministry, which include a 25-year waiver of inter-state transmission charges, the creation of a single portal for all statutory clearances, open access to all, and the benefit of renewable purchase obligation (RPO) to the hydrogen ammonia manufacturer and distribution licensee for renewable power consumption.
The draft National Green Hydrogen Mission, which is scheduled to be finalized shortly, will also layout policies on green hydrogen consumption responsibilities in order to create demand, as well as standards and specifications for green hydrogen product labeling.
India now uses 9% of worldwide hydrogen or 5.6 MMTPA, and this figure is predicted to rise to 11.7 MMTPA by 2030.
