Government taking steps to boost India's hydrogen production competitiveness

"Union Minister R. K. Singh, overseeing the power and renewable energy sectors, reiterated the government's dedication to bolstering India's competitive position in the production of green hydrogen. In a meeting with green hydrogen developers on October 19, he emphasized India's capacity to become a global leader in cost-efficient green hydrogen production, underpinned by its integrated grid and substantial renewable energy resources. The minister expressed a strong resolve to secure India's competitiveness in green hydrogen production, in alignment with the goals of the National Green Hydrogen Mission (NGHM), as outlined in the MNRE statement".

"The meeting aimed to acquire a deeper understanding of the obstacles faced by developers and to consider potential government actions to tackle these issues. These challenges encompassed various areas, including SEZ policies, regulatory provisions supporting dual connectivity, specific contractual conditions, and state-imposed demand charges, among other issues. A presentation during the meeting disclosed that the generation of 1 million metric tons of hydrogen demands 25 GW of renewable energy, whereas producing 1 million metric tons of green ammonia requires 5 GW of renewable power".

"The industry representatives were requested to share the locations of their upcoming green hydrogen and ammonia plants and the corresponding withdrawal capacity required so that the required transmission infrastructure can be planned accordingly", the statement said. The minister assured the industry that the government will take all possible steps for the resolution of their issues at the earliest. The Union Cabinet on January 4 approved the mission with an outlay of Rs 19,744 crore to make India a global hub for the manufacturing of this clean source of energy and development of a production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.