The government is planning to provide Rs 50 per kilogram to support the production of green hydrogen in the country. To this end, the government is working to contribute Rs 13,050 crore as incentives to support the production of green hydrogen, Mint has reported. The government has allocated a total of Rs 19,744 crore in support under the National Hydrogen Mission, according to the report.
The government plans to provide support of Rs 50 per kg of hydrogen in the first year, however, the support will be brought down to Rs 30 per kg of production in the third year.
The draft proposal states that the Centre is planning to provide direct incentives in terms of rupees per kilogram. The beneficiaries under the scheme would undergo a competitive bidding process, the report stated.
Speaking about the eligibility for the incentives, the report said that applicants will have experience developing at least 500 MW of renewable energy capacity over the past four years, or a minimum capacity of 500,000 tonnes of ammonia, methanol or 100,000 tonnes of hydrogen over the last four years. The scheme is scheduled to start in FY26.
The centre plans to allocate Rs 4,400 crore for a period of five years to boost electrolyzer manufacturing. In the first year, the incentives may hover around Rs 4,400 per kilowatt (KW). Going forward, the incentives will go down. In order to be eligible for the incentive, applicants will need to have experience producing 100 MW of electrolyzers or more in the last two years, Mint reported.
