NITI Aayog Report: ‘Harnessing Green Hydrogen’

July 2, 2022

Government’s think tank NITI Aayog published its report titled “Harnessing Green Hydrogen- Opportunities for Deep Decarbonisation in India”. This report has been prepared in collaboration with Delhi-based think tank RMI India.

Key Findings of the report

In its report, NITI Aayog has recommended to reduce or exempt the GST & Custom duties on production of green hydrogen, in order to boost the production in India.
It also proposed to set up green hydrogen corridors as well as offer grants to start-ups that are working on green hydrogen solutions domestically.
According to it, government should focus on bringing a cost reduction pathway for green hydrogen production in country.

Present Green Hydrogen Policy

As per report, present Green Hydrogen policy provides for adequate measures, which focuses on inter-state transmission (ISTS) charges waiver as well as open access for green ammonia and green hydrogen production. Its production can be further improved by reducing or exempting tax and duties.

What is Green Hydrogen?

Green hydrogen is hydrogen gas, which is produced through electrolysis of water. Electrolysis is an energy intensive process to split water into hydrogen and oxygen.

Hydrogen demand in India

As per report, Hydrogen demand in India will grow over four-times by 2050, accounting for 10% of global hydrogen demand. Thus, it suggests to facilitate investment by means of demand aggregation and dollar-based bidding for green hydrogen. Majority of the demand growth will come for steel and heavy-duty trucking, in long run, by 2050. Both will account for 52 per cent of total demand.

Hydrogen Corridors

Report further recommended to set up green hydrogen corridors in association with states. In initial phase, three hydrogen corridors should be developed, on the basis of state grand challenge. Governments can provide loans and grants to start-ups & projects as well as support entrepreneurs through investment networks and incubators.

Background

Central government has notified the green hydrogen and green ammonia policy, in February 2022 with the aim of increasing domestic production of green hydrogen to 5 million tonnes by 2030.

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