The government can provide fiscal incentives and the allocation of fiscal funds targeted for green hydrogen promotion in this country in the 2022-23 Union budget, which is scheduled to be launched in parliament.
The government launched a national hydrogen mission in 2021.
Earlier this month, the power and Minister of New Energy & Renewable R K Singh has indicated that green hydrogen policies will be launched in February which will display many incentives to increase green hydrogen in this country.
“While 2021 saw the launch of the National Hydrogen Mission, it is likely that the budget can provide fiscal incentives targeted for R & D in the green hydrogen segment, the creation of the domestic supply chain for hydrogen and reduce import duties on electrolysis to increase green hydrogen production,” said Venkatesh Raman Prasad , Partner, JSA Sagar (JSA).
Prasad believes that India’s commitment at COP 26 to achieve zero zero emissions in 2070 and fulfill the energy requirements of 50 percent of renewable energy in 2030 shows that the government intends to focus on a cleaner energy source.
Hemant Maliya, senior lead program, the Energy Council, the Environment and Water (CEE) hopes that hydrogen green has many industrial use and has the potential to remain many sectors that are difficult to occupy, such as the iron and steel industry.
He said that the expenditure of 1,200 crore Rs in 2024 on the upcoming budget could trigger pilots in various final use applications such as testing green hydrogen readiness of natural gas pipes, underground hydrogen storage, and pilots for equipment such as furnaces, boilers, and heating processes .
He suggested that other RS 165 Crore can support R & D, especially in the catalyst and electrolyer membrane, find a replacement for critical minerals, prepare testing laboratories and enforce safety standards.
This investment will help reprimand the production of green hydrogen and used as industrial fuel, he argues.
Davinder Sandhu, Co-Founder & Chairperson, Primus partners say that electrolysis used to produce hydrogen is currently expensive and lower their costs will contribute to reducing green hydrogen costs.
This will allow the state to meet the target of building 10 gigawatt domestic production capacity and making Indian global leaders in this sector, he is noisy.
In this case, he suggested that the government must consider the incentive scheme (PLI) associated with production that can support electrolysis electricity and increase green hydrogen production at optimized costs.
Earlier this month, Uni Minister R R K Singh said the new green hydrogen policy would display incentives such as free 25 years of power transmission, bid in dollars, land offers in renewable energy parks and land allocation near the port to make bunkers for green hydrogen or ammonia
Incentives for green hydrogen possibilities in the union budget
