India Approves Green Hydrogen Strategy, Expected to Spur $97 Billion Investments by 2030

The government of India announced the approval by cabinet of the National Green Hydrogen Mission, its strategy to establish India as a major green hydrogen production hub, with plans to reach 5 million tonnes of production and spur nearly $100 billion of investment by 2030.

The strategy is anticipated to assist India in becoming energy independent and decarbonize important economic sectors, including industry, mobility, and energy, according to a government statement announcing the decision.

One of the fundamental components of the transition to a cleaner energy future is hydrogen, particularly for industries with difficult-to-reduce emissions and in which renewable energy sources like wind or solar are less practicable.

Although the majority of the hydrogen produced each year, or around 90 million metric tonnes, is extracted using fossil fuels that emit GHGs and other pollutants, it is still created. Massive expenditures will be needed in sectors such as electrolysis, transportation, and infrastructure in order to build clean hydrogen capacity, such as green hydrogen, which powers the process of extracting hydrogen from other materials using renewable energy.

India revealed its national hydrogen mission in 2021 with the goal of integrating hydrogen into the nation's decarbonization strategy and establishing India as a hub for the production and export of green hydrogen on a global scale.

The government plans to increase renewable energy capacity by 125 GW and green hydrogen production to 5 million tonnes by 2030. In addition, it expects the strategy to generate over Rs8 lakh crore (US$97 billion) in total investments and over 600,000 new jobs by that time.

The policy is also expected to reduce fossil fuel imports by more than $12 billion by 2030 and roughly 50 million tonnes of yearly greenhouse gas emissions.

India's strategy to fulfil its climate pledges, which include 2030 aims to cut carbon intensity by 45% and to transition to approximately 50% electric power from non-fossil sources, heavily relies on the development of clean energy capacity, such as green hydrogen.

Over $2 billion in expenditures for incentives under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), which support domestic electrolyser production and manufacturing, were approved by the cabinet. Support for pilot initiatives in developing end-use industries, as well as R&D and production paths, are additional approved investments.

(Source : ESG Today)