Green Hydrogen Cost Reduction: MNRE Steps

New Delhi, Feb 3 (PTI) The government has taken multiple steps, such as production incentives, to reduce the manufacturing cost of green hydrogen, Parliament was informed on Tuesday.

The government is implementing the National Green Hydrogen Mission (NGHM), with an objective to make India a global hub of production, usage and export of Green Hydrogen and its derivatives, Union Minister of State for New and Renewable Energy Shripad Yesso Naik said in a written reply in Rajya Sabha.

He said India's Green Hydrogen production capacity is likely to reach 5 Million Metric Tonnes per annum by 2030.


"Under the incentive scheme for Electrolyser manufacturing, 15 companies have been awarded a total manufacturing capacity of 3,000 MW per annum. The total incentive awarded is Rs 4,440 crore," the minister informed the Upper House.

He said that under the incentive scheme for Green Hydrogen production, 18 companies have been awarded a cumulative production capacity of 8,62,000 tonnes per annum. Under the incentive scheme for procurement of Green Hydrogen for refineries, 2 companies have been awarded a total capacity of 20,000 tonnes per annum.

Without sharing any details, Naik said prices have been discovered by Solar Energy Corporation of India for the production and supply of 7,24,000 tonnes per annum of Green Ammonia (a derivative of Green Hydrogen) to 13 fertiliser units across India.

As part of the efforts, the green hydrogen/green ammonia plants commissioned on or before 31.12.2030, and which utilize renewable energy for the production of green hydrogen or green ammonia, have also been granted exemption from the payment of Inter State Transmission System (ISTS) charges for a period of 25 years, starting from the date of commissioning of the project, he said.