India plans to reduce green hydrogen costs, seeks cheap finance

India seeks to reduce the cost of producing green hydrogen to $1 per kilogramme from $5-$6 at present in order to encourage industry to utilise greener energy, Niti Aayog CEO Amitabh Kant said in an interview with Bloomberg Television. India also wants access to cheaper financing to help fund the transformation. 

In February, the world’s third-largest carbon emitter unveiled a plan to become a centre for the production and export of green hydrogen, a fuel generated from water and renewable electricity, though the fuel is still far from commercial viability.

“Unless cheap finance is available to be able to rapidly enhance both renewable and non-renewable, this transition will be difficult to speed up for a long period of time,” said Niti Aayog CEO Amitabh Kant. “Finances at low costs are critical.”

In January, Mukesh Ambani – the chairman of Reliance Industries – announced intentions to invest $75 billion in renewable energy infrastructure, including power plants, solar panels, and electrolyzers. It’s becoming increasingly likely that the idea incorporates converting all of that renewable energy into hydrogen, which would be one of the most significant endorsements for the next-generation fuel.

According to analysts, Reliance Industries is likely to choose hydrogen to sidestep India’s wholesale energy market, which is controlled by financially distressed companies and…

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