Green Hydrogen Plants Transmission Fee Waived by Govt
With an agenda to become the least expensive producer of hydrogen in the world, India has extended a waiver of transmission fees for renewable power to hydrogen manufacturing plants that are put into operation before January 2031.
With this change, there may be a reduction in the price of green hydrogen. The move is expected to cut the cost of green hydrogen – hydrogen produced by splitting water using electricity from renewables – by a fifth.
Large-scale hydrogen and ammonia projects require 3-4 years to construct, and the step will increase the number of green hydrogen manufacturing projects that are eligible for the 25-year waiver of transmission charges.
The aim is to produce green hydrogen for US$ 1-1.50 per kilogram, which would be significantly less expensive than the current US$ 4-5 per kilogram global average.
By 2030, Reliance Industries and Adani Enterprises want their costs to be US$ 1 per kilogram. Other well-known Indian corporations aiming to produce green hydrogen include Larsen & Toubro, Indian Oil, NTPC, JSW Energy, ReNew Power, and Acme Solar.
Before the end of June, India is also planning to launch a $2 billion scheme to provide incentives worth at least 10% of the costs to green hydrogen producers.
