New Delhi, September 11
India has a natural advantage in producing Green Hydrogen due to the low cost and abundance of solar energy and investments in the power grid, the Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, said on Wednesday.
Addressing the gathering at the 2nd International Conference on Green Hydrogen, Puri stated that India has great potential in this sector as it boasts one of the largest synchronous grids in the world, which can handle intermittent renewable energy. He highlighted that the country's installed solar capacity has increased 32 times from 2.6 GW in 2014 to 85.5 GW now.
India is poised to lead the global green energy demand alongside rising domestic demand across diverse sectors. Puri mentioned that more than Rs. 30 lakh crores of investment is expected to flow into the country to meet the target of 500 GW by 2030, with multilateral development banks pledging up to USD 27 billion for India's green growth. "With the available engineering talent in our country, India's transition to a greener economy will be smooth, helping the country position itself as a pivotal market for green hydrogen," he said.
The government has implemented a Green Hydrogen Policy with a production target of 5 million tonnes by 2030, along with the development of renewable energy capacity. The Cabinet has approved the National Green Hydrogen Mission, with an initial outlay of Rs. 19,744 crores. Under this policy, the government provides incentives such as the waiver of inter-state transmission charges for 25 years to manufacturers of Green Hydrogen and Green Ammonia for projects commissioned before June 30, 2025, which will accelerate production.
Puri noted that achieving mission targets is expected to reduce a cumulative Rs. 1 lakh crores worth of fossil fuel imports by 2030, likely yielding over Rs. 8 lakh crores in investments and creating over 6 lakh jobs. He further stated, "The global value chain for Green Hydrogen is still in the nascent stages. India must consider nuances such as green financing, hydrogen trade routes, human resource upskilling, and start-up initiatives, apart from regular production, storage, and transport-related concerns." Urging industry support, Puri emphasized that active collaboration among all stakeholders is essential if India wants to position itself as the world's green hydrogen hub.
Speaking at the summit, Union Minister for New and Renewable Energy Pralhad Joshi stated that green hydrogen is a way forward towards sustainability. "India is moving to become a key global player in the green hydrogen market; that is why we launched the Green Hydrogen mission. Integrating green hydrogen into India's energy mix and industrial processes will not only enhance our global positioning but also support environmental and social goals," said Joshi. He added that reducing the import of natural gas could save Rs. 1 lakh crore.