The Indian government has introduced the Green Hydrogen Standard, which establishes a specific definition for hydrogen to be classified as ‘Green’, as reported by Reuters on August 19. To qualify as green hydrogen, the emissions generated from the production of each kilogram (kg) of hydrogen, from well to gate, must not exceed 2 kg of carbon dioxide equivalent (CO2e). This calculation encompasses emissions associated with various stages, including water treatment, electrolysis, gas purification, drying, and hydrogen compression. The Ministry of New and Renewable Energy will be responsible for formulating a comprehensive methodology for measuring, reporting, monitoring, on-site verification, and certifying green hydrogen and its derivatives, as outlined in the notification.
This new standard positions India as one of the initial countries globally to establish a definitive definition of Green Hydrogen, as stated by the ministry. The move is expected to bring clarity to green hydrogen production in India. Presently, India consumes around 5 million tons of hydrogen annually, with a significant portion produced using fossil fuels. The country’s goal is to produce 5 million tons of green hydrogen each year by 2030, a measure projected to lead to a reduction of carbon emissions by 50 million tons and savings exceeding USD 12 billion in fossil fuel imports. In support of this target, the Indian government approved a USD 2 billion incentive plan in January, offering green hydrogen fuel producers incentives amounting to at least 10% of their costs. Furthermore, green hydrogen manufacturing projects that commence operations before January 2031 will benefit from a 25-year exemption from transmission charges.