India announced on Friday that it has set targets for certain industries to consume green hydrogen as part of its efforts to reach net zero by 2070. The government also unveiled a policy for green energy and approved a plan of incentives worth over $2 billion to increase green hydrogen production capacity to 5 million tonnes annually by 2030. As one of the world's largest emitters of greenhouse gases, India is taking steps towards cleaner fuel options.
India, the third-largest economy in Asia, plans to utilize green hydrogen to replace grey hydrogen, which is produced using gas, as it works towards decarbonizing sectors such as oil and fertilizers. Green hydrogen is a zero-carbon fuel produced through electrolysis using renewable energy from sources like wind and solar to separate water into hydrogen and oxygen. Leading companies in the country including Indian Oil Corp, NTPC Ltd, Reliance, and Adani group have announced plans to develop green hydrogen projects.
India aims to gradually establish hydrogen-powered shipping lines, and has set a target for the state-run Shipping Corp of India, the country's largest fleet operator, to retrofit at least two ships to run on green hydrogen-based fuels by 2027. Additionally, all state-run oil and gas companies that charter 40 vessels for fuel transport will be required to hire at least one ship powered by green hydrogen annually from 2027 to 2030.
“Green ammonia bunkers and refueling facilities will be set up at least at one port by 2025,” the government said in its policy document.
“Such facilities will be established at all major ports by 2035.”
India plans to phase out imports of ammonia-based fertilizers by 2035 and replace them with locally produced green ammonia-based soil nutrients. Additionally, the government will seek bids for the establishment of two domestic green hydrogen-based urea and diammonium phosphate plants. New steel plants will also be required to have the capability to run on green hydrogen.
