Union New and Renewable Energy Minister R K Singh said Thursday that his ministry would issue detailed guidelines and standards to make India a global center for hydrogen manufacturing.
This comment was made just day after the Union Cabinet approved National Green Hydrogen Mission with an outlay of Rs 19,744 crore.
Singh stated during a media interaction that “we will come out with an elaborate order after clearance by Cabinet.”
It is expected that the Mission will attract investments of Rs 8 lakh crore to produce 5 million tonnes of green hydrogen annually over the next five-years.
The Mission offers incentives to lower the price of green hydrogen.
“We have decided that electrolysers can be made in India. So, we have worked out the PLI (production linked incentive) scheme for their domestic manufacturing that will cover manufacture of 15 gigawatts (GW) capacity. But we expect the capacity to be established to be almost in the region of 60 GW (by 2030),” he added.
Singh noted that this (60 gigawatts) will be the largest manufacturing facility for electrolysers in the world.
“We will announce a date up till which domestic industry will be allowed to import electrolysers at lower import duties, let’s say by 2025-26. By 2025-26, we expect the domestic manufacturing capacity to come up. Thereafter, heavy import duties will kick-in, and we don’t expect anybody to import electrolysers,” the minister stated.
Singh stated that the PLI scheme for green hydrogen manufacturing will be offered until the domestic industry is competitive.
Germany, for example, have come out with bids for importing green hydrogen.
He said, “I have asked domestic industry to analyze the bids and determine if they can also take part in the bidding.”
Minister was of the opinion that battery is not suited for long-range vehicles, which should be powered by green hydrogen.
Singh also highlighted the government’s goal of making sectors such as steel, shipping, refining, cement, fertiliser, mobility (long-haul vehicles) and refining (petroleum) based on green hydrogen and ammonia.
The minister also mentioned the hydrogen purchase obligation (HPO), under which certain industries such as refining or fertiliser could use certain amounts of green hydrogen in addition to their overall consumption fossil fuel-based grey’ hydrogen.
The government also plans to lower the price for green hydrogen, currently at Rs 300 per kilogram.
Globally, industries are looking to lower the cost of green hydrogen to USD1 per kg (or Rs 82).
Splitting water produces carbon-free hydrogen that can be used in automobiles as well as as an energy source for industries like oil refineries, steel plants, and other petroleum companies. Green hydrogen is created when electricity from renewable sources are used for splitting water through electrolysis. This process produces oxygen as a byproduct.