Union New and Renewable Energy Minister RK Singh said on Thursday that his ministry will develop detailed guidelines and standards to make India a global hydrogen manufacturing hub.
The comments come a day after the coalition cabinet approved the National Green Hydrogen Plan, which will cost ¥19,744 million.
“After approval by the Cabinet, we will come up with a detailed order,” Singh said in a media interaction.
The group is expected to attract ¥Invest 8 trillion yuan to produce 5 million tons of green hydrogen per year in the next five years.
The incentives provided by the mission are aimed at reducing the cost of green hydrogen.
“We have decided that we can manufacture electrolysers in India. Therefore, we have developed a PLI (Production Linked Incentive) scheme for their domestic manufacturing, which will cover the manufacturing of 15 gigawatts (GW) of capacity. But we expect to build capacity Almost around 60 GW (by 2030),” he added.
Singh noted that this (60 GW) would be the largest electrolyser manufacturing capacity in the world.
“We will announce the date when domestic industry will be allowed to import electrolyzers with lower import tariffs, let’s say until 2025-26. By 2025-26, we expect domestic manufacturing capacity to increase. After that, high import tariffs will kick in and we will You don’t want anyone to import electrolysers,” the minister said.
The PLI scheme for green hydrogen production will be rolled out in the first few years until the domestic industry becomes competitive, Singh said.
Some countries, such as Germany, have already bid to import green hydrogen.
“I have asked the domestic industry to analyze the bids and find out if they can also participate in the bids,” he added.
The minister argued that batteries are not suitable for long-range vehicles and should be powered by green hydrogen.
Singh also highlighted the government’s aim to use green hydrogen and ammonia in industries such as steel, shipping, refining, cement, fertilizers, mobility (coach) and refining (oil).
The minister also referred to the Hydrogen Purchase Obligation (HPO), under which certain industries, such as refining and fertilizers, will use a certain percentage of green hydrogen in their total consumption of fossil fuel-based “grey” hydrogen.
The government also envisages reducing the price of green hydrogen, which is about ¥Currently 300 per kg.
Industries around the world are considering reducing the price of green hydrogen to $1 per kg (approx. ¥82).
Carbon-free hydrogen, which can be used as a fuel for cars and as an energy source for industries such as oil refineries and steel mills, is produced by splitting water. Green hydrogen is produced when electricity from renewable sources such as solar power splits water through electrolysis. Oxygen is a by-product of this process.
First published date: Jan 7, 2023 at 18:21 PM CST