A) Green Hydrogen
Hydrogen can be used as fuel. It is made by splitting water with an electrical process, electrolysis. If the devices that do that, electrolyzers, are powered by renewable energy, the product is called green hydrogen, a fuel-free of greenhouse emissions.
1)Global update
The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects. The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects.
2) Local update
India is planning a $2 billion incentive program for the green hydrogen industry, The 180-billion-rupee ($2.2 billion) incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years.
3) Latest update so far in detail
The current cost in India is 300 rupees to 400 rupees per kg for hydrogen.
The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects.
The Indian aid cum incentive could be announced in the Feb 2023 budget for the fiscal year beginning 1st April 2023 (probability of more than 65%) Because of Indian companies such as Reliance Industries (NS:), Indian Oil (NS:), NTPC (NS:), Adani Enterprises (NS:), JSW Energy (NS:) and Acme Solar have big plans on green hydrogen. Adani, led by the world’s third-richest person, Gautam Adani, said in June that it and France’s TotalEnergies would jointly create the “world’s largest green hydrogen ecosystem”.
The Indian government expects the industry to invest 8 trillion rupees in green hydrogen and its derivative green ammonia by 2030 as per the sources.
Green ammonia is made by combining nitrogen with hydrogen using renewable energy sources; it can be used by the fertilizer industry or as a fuel or convenient means of transporting hydrogen. The green hydrogen proposal is likely to be called “Strategic Intervention for Green Hydrogen Transition (SIGHT)” and will be split into 45 billion rupees for electrolyzer manufacturing for five years and 135 billion rupees for green hydrogen and green ammonia production for three years.
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Based on the research and expert opinions we feel the incentive for making green hydrogen is likely to be 50 rupees per kg for three years.
India companies aim to sell 70% of the production to countries such as South Korea, Japan, and the European Union.
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 industry sources.
In last February 2022, the government announced plans for India to make 5 million tonnes of green hydrogen annually by 2030.
The government also plans for the country to achieve an electrolyzer manufacturing capacity of 15 gigawatts in phases by 2030. That would be almost 10 times the current global capacity.
4)Prospect
U.S.-based Ohmium International has commissioned India’s first green-hydrogen factory in Bengaluru. Reliance Industries, Larsen & Toubro, Greenko, and H2e Power last year announced plans to build gigawatt-scale factories.
B) Solar energy updates
The government had targeted an installed capacity of 2,000 MW of solar power by 2025 in its 2016 solar policy.
The policy aims to create a unified single-window state portal managed by the Delhi Solar Cell that will provide information on the benefits of solar PV systems, process-related guidelines, and timeline.
In a bid to provide relief to renewable energy players, the government has allowed the implementing agencies to extend the commissioning date of solar PV and solar PV-wind hybrid power projects till March 31, 2024.
Conclusion:
To motivate consumers to use solar energy, the government will provide various incentives such as generation-based incentives Solar technology will see increased adoption at the domestic level if its initial investment can be brought down,
Indian oil refineries and fertilizer and steel plants annually use 5 million tonnes of hydrogen made from , called grey hydrogen. The process produces carbon dioxide. Higher gas prices have pushed the Indian grey hydrogen price to around 200 rupees per kg from 130 rupees a year ago.