The Indian authorities may quickly announce an incentive program price $2.2 billion to assist scale back the manufacturing of price of inexperienced hydrogen. 

According to Reuters, the inducement package deal might be a part of subsequent 12 months’s price range scheduled to be tabled within the Sansad (India’s parliament) on 1 February. 

The incentive package deal is predicted to allow producers of electrolyzers to cut back the price of inexperienced hydrogen manufacturing. According to Reuters, the present price of manufacturing of inexperienced hydrogen is round Rs 300-400 ($3.60-4.80) per kilogram. The Indian authorities goals to cut back that by a fifth over the following 5 years. The world aspirational purpose is to cut back this price to lower than $1 per kilogram by 2030. 

Oil refineries and fertilizer producers are the main customers of hydrogen in India, representing an annual demand of 5 million tonnes. Currently, this hydrogen is produced both as a byproduct within the petroleum refining course of or from pure gasoline. Both these processes generate greenhouse gasoline emissions. India lacks any vital reserves of pure gasoline, making it extremely depending on pricey imports. 

Over the previous couple of months, the Indian authorities has been seeking to push inexperienced hydrogen as a substitute for hydrogen produced from standard course of. It introduced plans to introduce mandates for big industrial customers to obtain inexperienced hydrogen. The so referred to as inexperienced hydrogen procurement obligation will seemingly cowl oil refineries, fertilizer producers, and metal producers. Such an obligation will maintain the demand, nevertheless, low cost provide of inexperienced hydrogen stays a key problem. 

Ohmium International is at the moment the one producer of electrolyzers in India. While the corporate has introduced to extend manufacturing capability its present capability in nowhere close to the upcoming demand. 

Quite a few Indian and worldwide corporations have introduced plans to ascertain electrolyzer manufacturing services. However, most of those plans are but to achieve the drafting board. Renewable challenge builders like ReNew Power and Acme have introduced expertise partnerships. Energy corporations like Reliance have made acquisitions to get entry to electrolyzer expertise and plan to arrange gigafactories. 

The authorities can be seeking to develop India as a significant export hub of inexperienced hydrogen for different Asian and European nations. Earlier this 12 months, renewable vitality challenge developer Greekno Energy Holdings signed an settlement with Singapore-based Keppel Infrastructure to supply green hydrogen beginning 2025.

Acme Solar, one other personal renewable vitality firm, has introduced bold plans to arrange green hydrogen and green ammonia manufacturing services to meet the demand of Indian and worldwide markets. The firm is seeking to arrange a 7 gigawatt renewable vitality challenge within the southern state of Tamil Nadu to supply inexperienced ammonia. The firm can be engaged on large-scale solar energy tasks in Oman to supply inexperienced hydrogen. The challenge is predicted to supply 100,000 tonnes of inexperienced ammonia yearly within the first section. This will ultimately improve to 1.2 million with 3.5 gigawatts of electrolyzer and 5 gigawatts (peak) of solar energy capability.

The incentive scheme is predicted to be on just like that applied for photo voltaic module manufacturing. The scheme will provide incentives to corporations that arrange module manufacturing models with backward integration of as much as polysilicon manufacturing.

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