India released on Thursday its plans for a green hydrogen policy, as it looks to facilitate the transition from fossil fuels and fossil-fuel-based feedstocks to green hydrogen and green ammonia.
Transitioning to green hydrogen or green ammonia could be a major step in reducing emissions in hard-to-abate sectors, India’s Power Ministry said.
India has a net-zero target for 2070, later than all countries that have pledged such in recent years, including China, which says it targets net-zero emissions by 2060.
Currently, India is the third-largest crude oil importer in the world, and imports account for more than 80 percent of its petroleum consumption. The country has been trying to increase domestic production for years, as it has become especially vulnerable to oil price rallies which raise its import bill and lead to fuel price hikes.
Moreover, coal currently accounts for around 70 percent of electricity generation in India.
Under the new green hydrogen policy, India will waive transmission charges for green hydrogen, and proposes to set up manufacturing zones where green hydrogen or green ammonia production sites can be located. The power ministry also plans to provide priority connectivity to electric grids to producers of green hydrogen and ammonia.
The business empires of India’s richest people, Gautam Adani and Mukesh Ambani, are well-positioned to benefit from the new green hydrogen policy as both business moguls have recently announced massive investments in clean energy.
At the end of last year, the Adani Group said it planned to invest $70 billion by 2030 in its green energy operations to become the largest producer of renewable energy in the world. Ambani has also recently announced major investments in renewable energy for his oil-to-telecoms conglomerate Reliance Industries. The group said last month that it would invest as much as $76 billion in green energy projects in India over the next 15 years. Reliance Industries already announced last year a commitment to invest more than $10 billion in three years in a new business unit that would build solar module, battery storage, electrolyzer, and fuel cell factories.