Govt sets up target for use of green hydrogen

India approved incentives worth over $2 billion last week to develop a green hydrogen production capacity of 5 million tonnes a year by 2030.

India wants to decarbonize certain sectors such as oil and fertilisers as it plans to move from grey hydrogen to green hydrogen.

Already, government-owned companies like Indian Oil Corp, NTPC Ltd, and private companies such as Reliance and Adani group have declared plans to build green hydrogen projects.

As per the new policy, the state-owned oil and gas companies that deploy at least 40 vessels for fuel transport will also have to hire at least one ship powered by green hydrogen each year from 2027 to 2030.

"Green ammonia bunkers and refueling facilities will be set up at least at one port by 2025," the government said in its policy document.

"Such facilities will be established at all major ports by 2035."

Further, India aims to end the imports of ammonia-based fertiliser by 2034 to 2035, and instead use domestically produced green ammonia-based soil nutrients.

The government wants to set up two domestic green hydrogen-based urea and diammonium phosphate plants, for which bids will be invited.

As per the policy, the new steel plants coming up in the country should be capable of operating on green hydrogen.