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Govt Subsidies For Green Hydrogen Attract 34 Companies

Government initially anticipated bids for producing 4.5 lakh tonnes of green hydrogen but received proposals for a whopping 5.5 lakh 

 As part of a significant incentive programme worth Rs 17,490 crore (USD 2.4 billion) to support the nation’s green hydrogen production and electrolyser manufacturing, 34 companies have entered the competition for projects under the Government of India’s Green Hydrogen Mission. This is a forward-looking initiative.

Prominent entities pursuing incentives for green hydrogen production include Acme Cleantech, Avaada GreenH2, Bharat Petroleum Corp and Reliance Industries. Adani Group, Jindal India, Reliance Industries and others are vying for the electrolyser manufacturing incentive scheme at the same time.

The government was expecting bids for 4.5 lakh tonnes of green hydrogen production, but instead it received proposals for a whopping 5.5 lakh tonnes. In a similar vein, bids for electrolysers jumped above the initial call for 1.5 GW, reaching 3.4 GW.

Offering Rs 50 (USD 0.6) per kg in the first year, Rs 40 (USD 0.48) in the second and Rs 30 (USD 0.36) per kg in the third, the incentive structure spans the first three years of output. The government intends to set aside about Rs 13,000 crore, or USD 1.56 billion, for the generation of green hydrogen, with the remainder monies going towards electrolysers.

The government plans to release bids for green hydrogen supply in three tranches and for electrolysers in two, given that the present cost of making green hydrogen is Rs 300 (USD 3.60) per kilogramme. There are 1,500 megawatts in each tranche and the incentive is Rs 4,400 (about USD 52.83) per kilowatt.

Over the next three to five years, the government plans to support the generation of 3.6 million tonnes of hydrogen and 3,000 megawatts of annual electrolyser capacity. The financial incentives will last until the fiscal year 2029–2030.

To transform India’s energy landscape, the National Green Hydrogen Mission aims to produce 5 million metric tonnes of green hydrogen annually. With total expenditures reaching Rs 8,00,000 crore, it seeks to create over 125 gigawatts of renewable energy capacity by 2030, creating over 6,000 jobs and cutting yearly greenhouse gas emissions dramatically.

There are plans to work together internationally; talks have been started with nations including Singapore, South Korea, Japan, France, Italy, Germany and the European Union. The mission is in line with India’s foreign direct investment (FDI) policy, which permits up to 100 per cent FDI through the automatic route in the renewable energy industry. India is taking a step towards a sustainable and innovative energy era, marked by the Green Hydrogen Mission.

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