The Energy and Resources Institute (TERI) has unveiled a policy brief, Green Hydrogen – Path to Decarbonization, thoroughly analysing India’s green hydrogen initiatives.
India’s targets under the Green Hydrogen Mission include 5 million tons of green hydrogen annually by 2030, potentially increasing to 10 million tons as demand grows. The government has allocated Rs 197.44 billion for this mission, primarily funding the Strategic Interventions for Green Hydrogen Transition (SIGHT) program and pilot projects to support R&D. The first phase of the SIGHT program, awarded to ten companies in January 2024, aims to produce 412,000 tons of green hydrogen annually, with further incentives for an additional 450,000 tons under development.
Public sector enterprises like GAIL and NTPC are pioneering green hydrogen projects, such as hydrogen blending in city gas networks and hydrogen-based fuel cell buses. State governments, including Maharashtra, Uttar Pradesh, and Andhra Pradesh, are also advancing ambitious policies to support green hydrogen production, infrastructure, and incentives. Private players like Reliance and Adani are also making significant investments to reduce costs and establish India as a global green hydrogen leader.
The brief underlines the importance of green hydrogen for decarbonizing sectors like steel, fertilizers, shipping, and aviation. For instance, in steel production, green hydrogen could replace traditional coke-based methods, significantly reducing emissions. Similarly, the fertilizer industry can switch from natural gas to green hydrogen to produce carbon-free ammonia, with significant potential for emissions reduction.
The recommendations emphasize creating a robust market for green hydrogen, including competitive procurement to drive cost reductions, support for R&D, and financial mechanisms such as subsidies or soft loans. It also advocates forming Special Purpose Vehicles (SPVs) to facilitate green hydrogen production for specific industrial segments, fostering long-term investment, and supporting India’s goal of becoming a net-zero carbon economy by 2070.