Indian green hydrogen subsidies set to be about 90% lower than US tax credits: reports
The first tranches of support for both renewable H2 production and local electrolyser manufacturing are set to allocated by the end of June, according to ‘top government official’
India will give green hydrogen producers a subsidy of at least 30 rupees ($0.36) per kg, Reuters reports, citing an unidentified “top government official”.
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But in a global marketplace, the relatively low subsidies might put off international investors, who could get higher returns on their investments in the US or EU.
The Indian government will start a bidding process for green hydrogen producers seeking incentives before the end of June, Reuters reported, with the lowest bidders being awarded contracts in three tranches of funding. Mint also says there will be a competitive bidding process.
Mint adds that applicants will have to have developed at least 500MW of renewables or 100,000 tonnes of hydrogen (or 500,000 tonnes of ammonia or methanol) over the past four years.
In addition, India has set aside 44.9bn rupees to subsidise about 3GW of local electrolyser production annually for five years, with the first tranche of support — worth 4,400 rupees per kilowatt — to be allocated by the end of June, and the second in the third quarter of 2023, Reuters reports. But Mint says there will be two 1.5GW auction rounds in the second and fourth quarters of 2024.
The Indian website says that the 4,400-rupee figure will only be offered for the first year, and will be subsequently reduced every year.
And it adds that applicants for this funding “should have experience producing at least 100MW of electrolyzers over the previous two years or should demonstrate technology partnerships with an entity which has produced at least 100 MW of electrolyzers during the same period”.