According to National Institution for Transforming India (NITI Aayog), India needs to establish Green Hydrogen Corridors, and governments should consider granting incentives to startups as well as supporting entrepreneurs in order to promote green hydrogen.
The Aayog also advised in a paper titled 'Harnessing Green Hydrogen - Opportunities for Deep Decarbonization in India' that there is a need to promote investment in green hydrogen through demand aggregation and dollar-based bidding.
"Based on state grand challenges, three hydrogen corridors should be built across the country, Governments may offer grants and loans to companies and projects, assist entrepreneurs through incubators and investor networks, and implement legislation to mitigate first-mover risks," According to the paper.
It also stated that the government may utilize public procurement and buying incentives (for green hydrogen) to stimulate demand in specialized areas and crowd in private investment. According to the research, the government should encourage the export of green hydrogen and green hydrogen-embedded products through a worldwide hydrogen alliance.
Green Hydrogen/Green Ammonia is defined as hydrogen/ammonia generated by electrolysis of water using renewable energy, including stored renewable energy and hydrogen/ammonia produced from biomass.
The majority of major economies, including India, have committed to net zero objectives. Transitioning to green hydrogen and green ammonia is one of the most important criteria for reducing emissions, particularly in difficult-to-reduce industries.
According to the analysis, hydrogen consumption in India might more than quadruple by 2050, accounting for almost 10% of worldwide demand. Longer future, steel and heavy-duty transportation are expected to drive the majority of demand increase, accounting for over 52% of total demand by 2050, according to the report.
The report stated that India may aim for 25 GW of electrolysis by 2030, while also investing USD 1 billion in Research & Develoapment (R&D) to catalyze the development of commercial green hydrogen technologies across the value chain, emphasizing that the roadmap should also identify a timeline and scale of manufacturing support for electrolysis.
It said that significantly increasing the speed with which regulatory approvals are granted, together with preferential treatment in public contracts, will assist catalyze local production. According to the research, grand challenges, public-private venture capital, and funding test bench infrastructure might all be included in R&D spending.
The paper seeks to be a valuable resource for India's Green Hydrogen Policy debate and private sector investment decisions.
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The fund could come from a variety of sources, including existing resources like the clean energy cess, special levies or cesses, fines levied against polluters, international sources (climate finance), bond issuance, and special levies or cesses.More