As India sets out to power a Green Hydrogen-led energy transformation, 34 companies compete for a share of the government's Rs 17,490 crore incentive plan to secure a sustainable energy future for the country
In a race for the future, 34 companies have thrown their hats into the ring for projects under the Government of India's Green Hydrogen Mission. The move is part of a Rs 17,490 crore ($2.4 billion) incentive programme aiming to boost the country's green hydrogen production and electrolyser manufacturing.
Notable contenders, including Acme Cleantech, Avaada GreenH2, Bharat Petroleum Corp, and Reliance Industries, are vying for incentives to produce green hydrogen. Simultaneously, Adani Group, Jindal India, Reliance Industries, and others are in the mix for the incentive scheme to manufacture electrolysers.
The government initially anticipated bids for producing 4.5 lakh tonnes of green hydrogen but received proposals for a whopping 5.5 lakh. Similarly, bids for electrolysers surged to 3.4 gigawatts (GW) against the initial call for 1.5 GW.
The incentives span the first three years of production, offering Rs 50 ($0.6) per kg in the first year, Rs 40 ($0.48) in the second, and Rs 30 ($0.36) per kg in the third. The government plans to allocate approximately Rs 13,000 crore (approximately $1.56 billion) for green hydrogen production, with the remaining funds dedicated to electrolysers.
With the manufacturing cost of green hydrogen at Rs300 ($3.60) per kilogramme currently, the government aims to roll out bids in three tranches for green hydrogen supply and two for electrolysers. Each tranche covers 1,500 megawatts, with an incentive set at Rs 4,400 (approximately $52.83) per kilowatt.
The government envisions supporting 3.6 million tonnes of hydrogen production and 3,000 megawatts of annual electrolyser capacity over the next three to five years. The financial incentives will extend until the 2029–30 financial year.
The National Green Hydrogen Mission targets a green hydrogen production capacity of 5 million metric tonnes annually to reshape India's energy landscape. It aims for a renewable energy capacity addition of about 125 gigawatts by 2030. The mission anticipates cumulative investments exceeding Rs 8,00,000 crore, creating over 6,00,000 jobs, and substantially reducing annual greenhouse gas emissions.
International collaborations are on the horizon, with discussions initiated with countries like France, Italy, Germany, Japan, South Korea, Singapore, and European Union nations. The mission also aligns with India's foreign direct investment (FDI) policy, allowing up to 100 percent FDI in the renewable energy sector under the automatic route. Stay tuned as the Green Hydrogen Mission propels India into a sustainable and innovative energy era.