+
India’s Green Hydrogen Cost May Drop 40 Per Cent
POWER & RENEWABLE ENERGY

India’s Green Hydrogen Cost May Drop 40 Per Cent

The cost of green hydrogen in India is projected to decline by up to 40 per cent, driven by extensive government support and incentives, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA). With current policy support, the levelised cost of green hydrogen is expected to fall to Rs 260–310 per kg (approximately USD 3–3.75 per kg).

India is actively promoting the green hydrogen sector by offering low-cost renewable power to manufacturers, waiving Inter-State Transmission Charges for open access, and reducing both distribution and transmission fees. Additionally, the Goods and Services Tax (GST) on hydrogen has been lowered to 5 per cent.

Electrolyser manufacturers are expected to achieve a 7 to 10 per cent reduction in system costs over the initial five-year period starting in 2024. The average annual realisable base incentive is estimated at Rs 2.96 million per megawatt (USD 36,000/MW), enhancing the viability of local manufacturing.

India launched the National Green Hydrogen Mission in January 2023, backed by an allocation of Rs 197.44 billion (USD 2.4 billion). The mission targets the creation of 5 million tonnes of green hydrogen production capacity annually by 2030 and features two financial incentive mechanisms — one supporting domestic electrolyser production and the other promoting green hydrogen output.

While the IEEFA report recognises the mission as a major policy breakthrough, it also calls for refinements to improve long-term investment prospects and competitiveness. Suggestions include greater focus on attracting start-ups, securing consistent demand, and strengthening supply chains to ensure industry sustainability.

The industry has shown strong enthusiasm, and successful implementation could benefit multiple sectors, including agriculture, transport, and manufacturing, the report added.

India’s broader energy vision aligns with its international commitments. At the COP26 summit in 2021, India pledged to achieve 500 GW of non-fossil energy capacity, meet half of its energy demand from renewables, cut emissions by 1 billion tonnes, reduce emissions intensity of GDP by 45 per cent, and achieve net-zero carbon emissions by 2070.

With these targets and the green hydrogen initiative, India aims to reduce fossil fuel dependence while advancing a sustainable, climate-resilient economy.

The cost of green hydrogen in India is projected to decline by up to 40 per cent, driven by extensive government support and incentives, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA). With current policy support, the levelised cost of green hydrogen is expected to fall to Rs 260–310 per kg (approximately USD 3–3.75 per kg).India is actively promoting the green hydrogen sector by offering low-cost renewable power to manufacturers, waiving Inter-State Transmission Charges for open access, and reducing both distribution and transmission fees. Additionally, the Goods and Services Tax (GST) on hydrogen has been lowered to 5 per cent.Electrolyser manufacturers are expected to achieve a 7 to 10 per cent reduction in system costs over the initial five-year period starting in 2024. The average annual realisable base incentive is estimated at Rs 2.96 million per megawatt (USD 36,000/MW), enhancing the viability of local manufacturing.India launched the National Green Hydrogen Mission in January 2023, backed by an allocation of Rs 197.44 billion (USD 2.4 billion). The mission targets the creation of 5 million tonnes of green hydrogen production capacity annually by 2030 and features two financial incentive mechanisms — one supporting domestic electrolyser production and the other promoting green hydrogen output.While the IEEFA report recognises the mission as a major policy breakthrough, it also calls for refinements to improve long-term investment prospects and competitiveness. Suggestions include greater focus on attracting start-ups, securing consistent demand, and strengthening supply chains to ensure industry sustainability.The industry has shown strong enthusiasm, and successful implementation could benefit multiple sectors, including agriculture, transport, and manufacturing, the report added.India’s broader energy vision aligns with its international commitments. At the COP26 summit in 2021, India pledged to achieve 500 GW of non-fossil energy capacity, meet half of its energy demand from renewables, cut emissions by 1 billion tonnes, reduce emissions intensity of GDP by 45 per cent, and achieve net-zero carbon emissions by 2070.With these targets and the green hydrogen initiative, India aims to reduce fossil fuel dependence while advancing a sustainable, climate-resilient economy.

Next Story
Infrastructure Urban

ITCONS Gains on New Rs 3.5 Million Defence Contract

ITCONS E-Solutions is trading at Rs 549.00, up by Rs 12.10 or 2.25 per cent from its previous close of Rs 536.90 on the BSE. The scrip opened at Rs 549.00 and has touched an intraday high and low of Rs 549.00, with 200 shares traded so far.A BSE ‘MT’ group stock with a face value of Rs 10, ITCONS touched its 52-week high of Rs 767.00 on 25 September 2024 and a 52-week low of Rs 166.70 on 5 August 2024. Over the past week, the stock has fluctuated between Rs 560.00 and Rs 510.60. The company's current market capitalisation stands at Rs 3.3 billion.Promoters hold 58.22 per cent of the compan..

Next Story
Infrastructure Urban

Delhi Extends EV Policy Till March 2026

The Delhi government has extended its existing Electric Vehicle (EV) Policy until 31 March 2026, or until a revised version is approved. The decision was made during a Cabinet meeting chaired by Chief Minister Rekha Gupta on Tuesday.According to Transport Minister Pankaj Kumar Singh, the draft of the new policy will undergo broader public consultation before being finalised, prompting the extension to allow time for thorough stakeholder engagement.The consultation process will include inputs from citizens, environmental groups, academic institutions, industry experts, and private firms. Key fo..

Next Story
Infrastructure Urban

Ather Crosses 400 Fast Chargers in Maharashtra

Electric two-wheeler manufacturer Ather Energy announced on Thursday that it has surpassed 400 fast charging points under its Ather Grid network across Maharashtra.The company's fast charging infrastructure now spans 35 cities in the state, including key urban centres such as Mumbai, Nashik, Pune, and Nagpur."Crossing 400 fast chargers in the state is about giving riders the assurance that they'll always find a charger when they need one. As we expand our retail presence, the charging network will continue to grow in tandem to make EV ownership truly seamless," said Ravneet Singh Phokela, Chie..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?