As the world takes measures to ramp up generation of clean and green energy, India too is exploring incentives to promote domestic production and export of green hydrogen and ammonia.

The proposed National Green Hydrogen Mission (NGHM) could include similar financial incentives and benefits available under the production-linked incentive (PLI) scheme, The Economic Times reported.

According to the report, India is looking at US, Japan, South Korea, Europe and other developed countries as potential markets to sell its green ammonia. The projected demand in these regions is more than 300 MMTPA (million metric tonnes per annum) by 2030.

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In order to make India a hub of renewable energy, the government could offer the incentives for a period of five years. According to the ET report, a government official said a minimum support production of 10 MMPTA for green hydrogen and 50 MMPTA for green ammonia is likely by 2030.

“The government could assist a PLI scheme for electrolyser manufacturing and on its components like electrodes and membranes, manufacturing of H2 storage, NH3 storage, NH3 loop,” the official was quoted as saying.

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NITI Aayog CEO Amitabh Kant told the news platform that the government is working to increase the production of green hydrogen and ammonia, and reduce the prices of these renewables significantly.

“We are determined to bring size and scale to green hydrogen and ammonia production and bring the price down from $4 per kg to $1 per kg and make India a global champion of production and exports,” Kant was quoted as saying.

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Besides setting up industrial corridors for green hydrogen and ammonia in solar power producing-states, the government will soon come up with technical safety standards to ensure hazard-free production and exports.

The incentives are expected to be in addition to the already announced benefits by the power ministry, which included waiver of interstate transmission charges for 25 years and creation of a single portal for all statutory clearances among others.

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First Published:Mar 14, 2022 6:50 PM IST