India is motivated to pursue low-carbon hydrogen due to its potential of contributing to energy security and independence. In 2021, India was the world’s third-largest energy importer, fourth-largest LNG importer, and third-largest coal and petroleum product importer. To ensure a well-planned entrance into the hydrogen market, the report ““Analysis of Hydrogen Supply Chain Readiness in Selected Indo-Pacific Countries” by NREL presents several key elements for pursuing low-carbon hydrogen in the country. First, India plans to localize its hydrogen supply via the pursuit of emerging low-carbon hydrogen production technologies, such as water electrolysis. Specifically, the first goal of the country is to produce 5-10 Mt-H2 per year by 2030 to localise a significant part of its domestic demand via localized low-carbon hydrogen processes. In parallel, India plans to localize electrolyzer manufacturing with a potential to export electrolyzers as the low-carbon hydrogen market grows.
Second, India plans to develop and deploy low-carbon hydrogen in two phases starting from 2022 and ending in 2030. The first phase is planned to focus on demand and supply creation, whereas the second phase is planned to expand low-carbon hydrogen pilot projects. To help with demand creation, the government developed a bidding framework that took place in mid-2023 and selected seven hydrogen-related projects to be awarded governmental financial incentives. Third, the mission encouraged ministerial cooperation with identified specific responsibilities for every relevant Indian ministry. Fourth, the mission recommends several actions for the state and center governments regarding incentives, regulation, and policy of low-carbon hydrogen that will encourage investments and increase awareness. Finally, although the mission aims to produce 5 Mt-H2 per year by 2030, it reports a potential expansion to 10 Mt-H2 per year, depending on the growth of the hydrogen export market. In addition, it aims to create 600,000 new jobs in the low-carbon hydrogen space and allocate approximately US$97 billion in low-carbon hydrogen investments by 2030.
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