India is planning a $2 billion (€1.9 billion) incentive programme for the green hydrogen industry in a bid become a major exporter in the field and to cut emissions.
The incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years, said a senior government official and an industry manager working in renewable energy, Reuters reported.
The US and the European Union have already approved incentives worth billions of dollars for green hydrogen projects.
Indian companies such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy and Acme Solar also have big plans for green hydrogen.
The Indian government expects industry to invest in green ammonia by 2030. Green ammonia is made by combining nitrogen with hydrogen using renewable energy sources.
India aims to sell 70% of the production to countries such as South Korea, Japan and in the European Union, while green ammonia had an equally strong demand.
The government is estimating global demand for green hydrogen will exceed 100 million tonnes by 2030, from just under 75 million tonnes now, according to other industry sources.
The government also plans for the country to achieve electrolyser manufacturing capacity of 15 gigawatts in phases by 2030. That would be almost 10 times current global capacity.
India outlines green hydrogen strategy
