India pursues green hydrogen for energy security, but funding hurdles stand in the way of its emission targets

“India is rightly in a very sweet spot to emerge as one of the biggest players in the green hydrogen market globally, in time to come,” JSW Energy’s director for finance Pritesh Vinay told CNA.

“I think that all the policy tailwinds that the government has come out in consultation with industries is moving in the right direction, and this can potentially become a very big opportunity.”

JSW Energy is already making plans to build a second plant which will be 20 times bigger than the first.

BENEFITS AND CHALLENGES

CRISIL Market Intelligence and Analytics senior practice leader Pranav Master, who is also director for energy and sustainability, said India’s focus on green hydrogen would improve its energy self-reliance.

“First and foremost, I think clearly from a national energy security standpoint, today, India imports a large part of its overall energy needs, and producing green hydrogen indigenously will improve its energy security,” he said.

“Second, it will help combat climate change and help meet its global commitments.”

The Indian government estimates that its green hydrogen plans could slash annual carbon dioxide emissions by 50 million metric tonnes by 2030, while saving the country over US$12 billion in fossil fuel imports.