The Indian government has approved a budget of $2.3 billion to support the production, use and exports of green hydrogen, with the aim of making India a global hub for this emerging industry. The funding, announced Wednesday night, is the first step toward achieving the ability to produce at least 5 million metric tons of green hydrogen by the end of this decade.
Green hydrogen is hydrogen that is produced by the electrolysis of water, powered by electricity generated from renewable energy sources. Most of the world's hydrogen is produced using fossil fuels, especially natural gas. The goal of this funding initiative is to “make green hydrogen affordable and cost-effective over the next five years. It will also help India reduce its emissions and become a major exporter in the field,” said Anurag Thakur, India's Information and Broadcasting Minister. He said the funding would also help boost renewable energy generation by about 125 gigawatts by 2030. As of October, India had about 166 gigawatts of renewable energy capacity. Other goals are to create more than 500,000 new jobs, attract more private investment in the sector, reduce fossil fuel imports and reduce greenhouse gas emissions by 50 million metric tons.