In what may further help burnish India’s green energy credentials, the government may extend the production linked incentive (PLI) scheme for manufacturing electrolyzers, which are used for producing green hydrogen.
Green hydrogen gas is produced by splitting water into hydrogen and oxygen using an electrolyzer, which may be powered by electricity generated from renewable energy sources such as wind and solar. The biggest impediment for a push towards green hydrogen is the cost of electrolyzer, with its present prices being over $800 per kilowatt.
“You do not need a PLI scheme for green hydrogen but for manufacturing of electrolyzers as we go along,” said Niti Aayog chief executive officer Amitabh Kant at “Mint India Investment Summit” on Wednesday.
A drop in electrolyzer prices is expected to make green hydrogen competitive vis-а-vis fossil fuels by 2030.
“India has this opportunity to be a global champion in green hydrogen. If we are able to do this, we can export green hydrogen to Japan, to Korea and Australia. That also gives us the opportunity to manufacture electrolyzers.
That is a $20 billion global market. If you have to push for electrolyzers, you will have to push for production linked incentives,” Kant added.