India plans to produce 5 million tonnes of green hydrogen by 2030

By Sudarshan Varadhan

NEW DELHI (Reuters) -India plans to manufacture a cumulative 5 million tonnes of green hydrogen by 2030, the country's power ministry said on Thursday, as it aims to meet its climate targets and make the country a production and export hub for the fuel.

Green hydrogen, produced using renewable energy, has some of the best environmental credentials among cleaner-burning fuels. It is not currently produced in India on a commercial scale.

India will set up separate manufacturing zones, waive inter-state power transmission charges for 25 years and provide connectivity to electric grids on priority to green hydrogen and ammonia producers in a bid to incentivise production, the federal power ministry said on Thursday.

"This will reduce dependence on fossil fuel and also reduce crude oil imports. The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia," the power ministry said in a statement.

India's Power Minister RK Singh said on Wednesday green hydrogen manufacturers will also be allowed to transmit unused electricity to the grid.

The incentives announced on Thursday are the first part of India's national hydrogen policy. The government has not said when the rest of the policy will be released.

India also plans to provide federal financial support for the setting up of electrolysers, as it wants to make the use of green hydrogen mandatory for refineries and fertiliser plants.

(Reporting by Sudarshan Varadhan; Editing by Toby Chopra)