The Indian government has approved an INR197bn ($2.3bn) budget for its National Green Hydrogen Mission, with INR174.9bn allocated to incentives for domestic electrolyser manufacturing and hydrogen production.

India is targeting installation of 5mn t/yr of green hydrogen capacity, with 125GW of additional renewables, by 2030. The government expects this to enable the abatement of nearly 50mn t/yr of CO₂ emissions from the country’s industrial, mobility and energy sectors by that year, as well as the cumulative reduction of INR1tn of fossil fuel imports. The country imported 85.6pc of its crude oil in the previous financial year amid declining production and rising demand but has set a target for energy independence by 2047.

5mn t/yr – Targeted green hydrogen production capacity by 2030

The government has also budgeted more than INR14.6bn to support pilot projects for emerging end-use and production pathways. The National Green Hydrogen Mission aims to unlock more than INR8tn in total investment and create more than 600,000 jobs.

The scheme is also set to identify potential regions to site hydrogen hubs. Industry association the India Hydrogen Alliance and the government of the southern state of Kerala announced a proposal for a $575mn green hydrogen hub in the port city of Kochi in November.

The government aims to further establish frameworks for policy, standards and regulation through the Ministry of New and Renewable Energy.

The National Green Hydrogen Mission is expected to unlock export opportunities for hydrogen and its derivatives, although no targets have been set for this.

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Author: Polly Martin