India approves US$2.3 billion to develop green hydrogen, global hub aim
- The funding is a first step towards establishing the capacity to make at least 5 million metric tons of green hydrogen by the end of this decade
- The aim is to make it affordable by bringing down the cost over the next five years to help India reduce emissions and become a major exporter
The government has approved US$2.3 billion to support production, use and exports of green hydrogen, aiming to make India a global hub for the nascent industry.
The funding, announced late on Wednesday, is a first step towards establishing the capacity to make at least 5 million metric tons of green hydrogen by the end of this decade.
Green hydrogen is hydrogen that is produced through the electrolysis of water, powered by electricity generated from renewable sources of energy. Most of the world’s hydrogen is produced using fossil fuels, especially natural gas.
The aim of the funding initiative is “to make green hydrogen affordable and bring down its cost over the next five years. It will also help India reduce its emissions and become a major exporter in the field,” said Anurag Thakur, India’s minister for information and broadcasting.
He said the financing would also help add about 125 gigawatts of renewable energy capacity by 2030. As of October, India had about 166 gigawatts of renewable energy capacity.
Other aims are to create more than a half million new jobs, attract more private investment into the sector, reduce fossil fuel imports and cut greenhouse gas emissions by 50 million metric tons.