India is looking to go big on green hydrogen production as a transition to green and non-fossil energy takes precedence across the world.

CNBC-TV18 has learned the government is looking to bring in dollar-linked contracts for hydrogen procurement and Production-Linked Incentives for the manufacturing of electrolyser used for green hydrogen production. One of the most common methods of generating Green Hydrogen is by electrolysis of pure water through Electrolysers.

“A framework to support manufacturing via suitable incentives and facilitation aligned with ‘Make in India’ and ‘Atmanirbhar Bharat’ will be developed,” the draft on National Hydrogen Energy Mission said.

About 6.7 million metric tonnes hydrogen is produced annually in India. It is consumed for various industrial purposes, including petroleum refining, manufacturing ammonia for fertilizers, methanol production, etc.

Currently, there is limited capacity for the production of electrolysers, fuel cells, and hydrogen storage systems in the country. Fulfilling the expected green hydrogen market demand over the next decade with indigenously manufactured products will transform India into a global hub for the manufacturing of cutting-edge hydrogen technologies, the draft added.

The idea is to set an ambitious target by taking an account of electrolyser capacity, delivery cost and uptake in the coming years, the draft said.

The electrolyser market is expected to be a $20 billion dollar market by 2030. And Green Hydrogen demand is expected to reach 1.6 million tonnes by 2030. To meet this demand, India may require an investment of over Rs 2.5 lakh crore.

CNBC-TV18 learned that government may aim to create 30 GigaWatt capacity by 2030. This might make India a market leader since it is an area where China is not on top.

The Ministry of New and Renewable Energy (MNRE) is already in discussion with stakeholders to shape the National Hydrogen Energy Mission.

The idea is to include petroleum refinery and fertilizer sectors initially for green energy consumption. In the long term, the ministry plans to include sectors like City Gas Distribution, Steel, Power and heavy-duty trucks. It may also focus on green hydrogen use in sectors for climate-linked exports and look at Asia for green hydrogen exports.

“Besides Electricity, Green Hydrogen will be a unique energy vector that can enable deep decarbonisation of many sectors such as transportation, industry and power,” Mukesh Ambani, the Chairman of Reliance Industries had said at RIL’s annual general meeting on Thursday.

(Edited by : Yashi Gupta)