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GH2 sops less than West but power minister RK Singh sure of 60 GW capacity by 2030


NEW DELHI: Green hydrogen (GH2) incentives of a little over $2 billion may be woefully lower than major economies but using part of the funds to give a small subsidy to consumer industries will hasten the development of an ecosystem and lead to backing out nearly two-thirds of expensive LNG imports, analysts and industry executives said.
Government documents show Germany offering the highest GH2 support at $10.3 billion, followed by the US $9 billion, France $8.2 billion and the European Union $4.3 billion.
Power minister Raj Kumar Singh on Thursday said the bidding norms for administering the incentives, part of which is meant to support 15 gigawatts of domestic electrolyser manufacturing capacity by 2030. “But we expect the capacity to reach 60 GW by then. It will be the largest in the world,” he added.
The documents cited above show the government aims to reduce GH2 price by 2030 to Rs 130/kg — the average cost of grey hydrogen derived from natural gas — from the current cost of Rs 300/kg. Grey hydrogen is currently ruling at Rs 200-250/kg due to the impact of Ukraine conflict.
Hemant Mallya of CEEW said a subsidy of 50 US cents per kg of GH2 from the funds allocated for strategic intervention to end-users will help achieve parity with grey hydrogen obtained from natural gas and create demand side pull, potentially backing out 68% of India’s expensive LNG imports. The government estimates adoption of GH2 will lead to savings of Rs 1 lakh crore in fuel imports.
According to Deloitte India’s Shubranshu Patnaik, incentives will have to come with legal obligation for mandatory GH2 use for creating adequate demand by making hard-to-abate user industries transition from grey hydrogen.
Solar industry too expects to benefit from a rapid development of GH2 ecosystem, which envisages 125 GW additional renewable capacity. “Since GH2 needs renewable energy, producers can bank on solar power. This will support the domestic solar power industry and component manufacturers, Gautam Mohanka, MD of solar module manufacturer Gautam Solar, said.



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