Government may give PLI-like sops for hydrogen, ammonia

Government may give PLI-like sops for hydrogen, ammonia

The government could offer incentives akin to those available under the production linked incentive (PLI) schemes to promote domestic production and export of green hydrogen or ammonia. Some of the measures, including sops for exports, could find place in the proposed National Green Hydrogen Mission (NGHM).

The incentives could be offered for a period of five years to support a minimum of 10 MMTPA (million metric tonnes per annum) of green hydrogen or green ammonia exports by 2030 and 50 MMTPA green hydrogen or ammonia market by 2030 in the country, a senior government official said. “The government could assist a PLI scheme for electrolyser manufacturing and on its components like electrodes and membranes, manufacturing of H2 storage, NH3 storage, NH3 loop,” the official added.

India is eyeing exports of green ammonia to developed economies such as Japan, US, South Korea and Europe, where demand is projected to be more than 300 MMTPA by 2030.

The government will also lay down technical safety standards for production and exports, along with setting up industrial corridors for green hydrogen or ammonia production along with land aggregation in major solar power producing states.

“We are determined to bring size and scale to green hydrogen and ammonia production and bring the price down from $4 per kg to $1 per kg and make India a global champion of production and exports,” NITI Aayog CEO Amitabh Kant told ET.

These incentives could be over and above the benefits recently announced by the power ministry, including waiver of inter-state transmission charges for a period of 25 years, creating a single portal for all statutory clearances, open access to all and granting benefit of renewable purchase obligation (RPO) to the hydrogen ammonia manufacturer and the distribution licensee for consumption of renewable power.

The draft National Green Hydrogen Mission, which will be finalised soon, is also expected to lay down policy on green hydrogen consumption obligations for creating demand while setting out standards and specifications for green hydrogen labelling of products.

Currently, India consumes 9 % or 5.6 MMTPA of global hydrogen and this is expected to grow to 11.7 MMTPA by 2030.

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