Released July 19, 2024 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The World Bank has approved a US$1.5 billion loan to help India continue its drive into the green hydrogen sector.
The money will go toward programs that support the production of hydrogen via electrolysis, alongside the development of a homegrown manufacturing sector for building electrolyzer units. The World Bank stated that not only will the loan help create a "vibrant market for green hydrogen," it will aid by scaling up renewable energy overall and stimulate finance for low-carbon energy investments.
The loan follows on from an initial loan of $1.5 billion last summer. India is one of the fastest-growing large economies in the world. Today its energy consumption per capita is only one-third of the global average, but its demand is expected to grow rapidly as the economy expands, driven by the industrial sector. The country has also pledged to curb its emissions with a goal of achieving net-zero by 2070.
Green hydrogen is seen as having a key role in initially decarbonizing hard-to-abate industrial sectors, such as fertilizer and refinery industries, and later heavy industries, including iron and steel. India is expecting to produce at least 450,000 metric tons of green hydrogen and 1,500 megawatts (MW) of electrolyzers per year from 2025/26 onward. This will also boost the rollout of related renewable energy capacity and support reductions in emissions by 50 million tons per year. The creation of a national carbon credit market will follow.
Industrial Info is tracking almost 300 green hydrogen projects worth US$94 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"India has taken bold action to develop a domestic market for green hydrogen, underpinned by rapidly expanding renewable energy capacity. The first tenders under the National Green Hydrogen Mission's incentive scheme have demonstrated significant private sector interest," said Aurélien Kruse, one of the team leaders for the operation. "The operation is helping in scaling up investments in green hydrogen and in renewable energy infrastructure. This will contribute towards India's journey for achieving its Nationally Determined Contributions targets."
India's government has implemented several measures to help boost the sector, including subsidies for manufacturing electrolyzers and green hydrogen. Tenders issued by the Solar Energy Corporation of India (SECI) are designed to create a stable and attractive framework for investors, including the introduction of the Carbon Credit Trading Scheme (CCTS), anticipated to spark a domestic carbon credit market and improve financial access for low-carbon energy projects. Last month, SECI invited bids for supplying 539,000 tonnes of green ammonia annually for the fertilizer industry. State-owned oil marketing companies are preparing tenders to establish green hydrogen units at their refineries.
The installed solar energy capacity of India stands at 88 gigawatts (GW), as of 31 March 2024, with its potential estimated to be 748 GW, according to the National Institute of Solar Energy. With regards to onshore wind, India has installed around 42 GW, according to the National Institute of Wind Energy, with a further 120 GW of projects judged to be financially feasible. Offshore wind is in its infancy, but the country is surrounded by sea on three sides with a coastline measuring 7,600 kilometers. Initial assessment of offshore wind energy potential within the identified zones has been estimated to be about 70 GW off the coast of Gujarat and Tamil Nadu. In September last year, a revised strategy outlined plans to start a bidding auction for 37 GW of capacity.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The money will go toward programs that support the production of hydrogen via electrolysis, alongside the development of a homegrown manufacturing sector for building electrolyzer units. The World Bank stated that not only will the loan help create a "vibrant market for green hydrogen," it will aid by scaling up renewable energy overall and stimulate finance for low-carbon energy investments.
The loan follows on from an initial loan of $1.5 billion last summer. India is one of the fastest-growing large economies in the world. Today its energy consumption per capita is only one-third of the global average, but its demand is expected to grow rapidly as the economy expands, driven by the industrial sector. The country has also pledged to curb its emissions with a goal of achieving net-zero by 2070.
Green hydrogen is seen as having a key role in initially decarbonizing hard-to-abate industrial sectors, such as fertilizer and refinery industries, and later heavy industries, including iron and steel. India is expecting to produce at least 450,000 metric tons of green hydrogen and 1,500 megawatts (MW) of electrolyzers per year from 2025/26 onward. This will also boost the rollout of related renewable energy capacity and support reductions in emissions by 50 million tons per year. The creation of a national carbon credit market will follow.
Industrial Info is tracking almost 300 green hydrogen projects worth US$94 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"India has taken bold action to develop a domestic market for green hydrogen, underpinned by rapidly expanding renewable energy capacity. The first tenders under the National Green Hydrogen Mission's incentive scheme have demonstrated significant private sector interest," said Aurélien Kruse, one of the team leaders for the operation. "The operation is helping in scaling up investments in green hydrogen and in renewable energy infrastructure. This will contribute towards India's journey for achieving its Nationally Determined Contributions targets."
India's government has implemented several measures to help boost the sector, including subsidies for manufacturing electrolyzers and green hydrogen. Tenders issued by the Solar Energy Corporation of India (SECI) are designed to create a stable and attractive framework for investors, including the introduction of the Carbon Credit Trading Scheme (CCTS), anticipated to spark a domestic carbon credit market and improve financial access for low-carbon energy projects. Last month, SECI invited bids for supplying 539,000 tonnes of green ammonia annually for the fertilizer industry. State-owned oil marketing companies are preparing tenders to establish green hydrogen units at their refineries.
The installed solar energy capacity of India stands at 88 gigawatts (GW), as of 31 March 2024, with its potential estimated to be 748 GW, according to the National Institute of Solar Energy. With regards to onshore wind, India has installed around 42 GW, according to the National Institute of Wind Energy, with a further 120 GW of projects judged to be financially feasible. Offshore wind is in its infancy, but the country is surrounded by sea on three sides with a coastline measuring 7,600 kilometers. Initial assessment of offshore wind energy potential within the identified zones has been estimated to be about 70 GW off the coast of Gujarat and Tamil Nadu. In September last year, a revised strategy outlined plans to start a bidding auction for 37 GW of capacity.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
