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

India plans to produce a cumulative 5 million tonnes of green hydrogen by 2030, aiming to meet its climate goals and become a producer and exporter of the fuel, the power ministry said on Thursday.

Green hydrogen produced using renewable energy has the most environmentally friendly qualifications among clean fuels

To spur production, India will set up separate manufacturing zones, waive interstate transmission charges for 25 years, and prioritize grid connections for green hydrogen and ammonia producers, the federal power ministry said

The production target of 5 million tonnes is half of the EU's plan to produce 10 million tonnes of hydrogen from renewable energy by 2030

While India has not yet produced green hydrogen on a commercial scale, the country's richest men, Mukesh Ambani and Gautam Adani, have announced plans to produce green hydrogen

With a population more than three times that of the European Union and a much lower per capita energy consumption, India has one of the fastest growing energy demand in the world

Mayank Bansal, chief commercial officer at ReNew Power, said the incentives announced in India could help reduce the cost of hydrogen manufacturing

"The cost of manufacturing green hydrogen fuel is currently high, and the government recognizes this and has waived interstate transmission charges," Bansal said in a statement

　　Green hydrogen makers will also be allowed to feed unused electricity to the grid, Power Minister RK Singh said on Wednesday

　　The incentives announced on Thursday are the first part of India's national hydrogen policy

　　India also plans to provide federal financial support for the establishment of electrolyzers as it looks to mandate the use of green hydrogen in refineries and fertilizer plants