In a bid to make India energy-independent and decarbonise major sectors, the country has approved an incentive plan of $2.11 billion to promote green hydrogen. It is the country’s big announcement this year in a bid to cut emissions and become a major exporter in the field.
The Union Cabinet on January 4 approved the National Green Hydrogen Mission, which is aimed at making India the global hub for the production of green hydrogen. Green hydrogen, also called renewable hydrogen, is produced from the electrolysis of water in a process powered by renewable energy. Across the world, green hydrogen is emerging as a future alternative to fossil fuels. The fuel is currently expensive, and India’s incentive plan aims to reduce production costs and increase the scale of the industry by 2030.
The Mission aims to achieve the development of a green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030. It also plans to achieve a cumulative reduction in fossil fuel imports of over R. One lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions in the same timeline. The development is also expected to help the country to achieve net-zero carbon emissions by 2070.
Countries such as the US, Japan, Saudi Arabia, the UAE, and EU members have invested billions in strategies to develop green hydrogen projects.