New Delhi: India has the potential to become a global leader and major exporter in the green hydrogen sector, but achieving this requires a significant influx of private investment along with public funding, said India’s G20 Sherpa and former NITI Aayog chief executive Amitabh Kant.
Speaking at the “Climate Financing” conference organized by Ease of Doing Business, Kant outlined ambitious plans for reducing the cost of green hydrogen in India. “Our aim is to bring down the cost of green hydrogen to USD 2.5 per kilogram by 2025 and USD 1 per kilogram by 2030, from the current USD 4.5 per kilogram. This can only be possible by increasing the size and scale of hydrogen manufacturing,” he said.
Echoing the Prime Minister’s vision for India’s energy future, Kant noted, “By 2047, India should transition from being an energy importer to an exporter. This involves a strong focus on renewable energy and green hydrogen production.” He highlighted that green hydrogen could potentially replace coal and imported gas in major industries, thereby contributing significantly to 80% of the country’s energy needs.
To meet the net-zero emissions target by 2070, the Indian government is actively looking at an energy transition with a focus on the production of green hydrogen.
In January 2023, the central government approved the National Green Hydrogen Mission with an initial outlay of INR 19,744 crore. Of the allocated sum, INR 17,490 crore or 88.6 % has been earmarked solely for incentives on the production of green hydrogen and the manufacturing of electrolysers.
Kant also addressed the necessity for diverse financial strategies to realize these goals. “We can’t solely rely on private funds or conventional banking systems, including global institutions like the World Bank and IMF, due to their non-alignment with climate financing objectives. The risks for developing countries like India are different from the developed world, and we need to speed up our transformation to secure funds at lower rates,” he stated.
He further stressed the importance of a comprehensive approach in the mobility sector, aiming for 100% electrification of two-wheelers and three-wheelers by 2030. “To achieve our climate and development targets, a blend of private and public financing is essential,” Kant added, highlighting the need for India to play a key role in reforming multilateral development banks to facilitate this process.
