Policy changes and incentives fuel India’s green hydrogen push

Nation targets 5 million tonnes of green hydrogen by 2030

India’s Ministry of New and Renewable Energy (MNRE) has implemented steps through the National Green Hydrogen Mission (NGHM), to make India's Green Hydrogen production cheaper.

With the aim of producing 5 million metric tonnes of green hydrogen per year by 2030, India has focused on using financial incentives, infrastructure support, and policy relaxations to bring costs down, according to Union Minister of State for New and Renewable Energy Shri Shripad Yesso Naik in a written reply in Rajya Sabha today.

Under the incentive scheme for electrolyser manufacturing, 15 companies have been awarded a total manufacturing capacity of 3,000 MW per annum. The total incentive awarded is $0.48b (₹4,400 crore).

When it comes to green hydrogen production, 18 companies have been awarded a cumulative production capacity of 862,000 tonnes per annum.

In Green Hydrogen for refineries, 2 companies have been awarded a total capacity of 20,000 tonnes per annum.

Green hydrogen and green ammonia plants that will be or have been commissioned before 31 December 2030 will be granted a 25-year exemption from Inter-State Transmission System (ISTS) charges starting from the date of project commencement.

Units in Special Economic Zones (SEZs) have been granted duty exemptions for installing and maintaining renewable energy equipment.

MNRE is also supporting a Research and Development project titled ‘Scale-up of Perovskite Tandem Solar Cells (Phase-I)’ with a total project cost of $9.15m (₹83.19 crore) for scale-up and indigenisation of perovskite tandem solar cell technology.