NITI Aayog calls for the promotion and formation of hydrogen green corridors in India


NITI Aayog on June 29 released a report titled “Harnessing Green Hydrogen – Opportunities for Deep Carbonization in India”. Aayog has proposed that the government set up hydrogen corridors and provide subsidies and support to entrepreneurs to promote its production, storage and export.

What is the report about?

The report indicates that investment in green hydrogen could be facilitated by demand aggregation and dollar auctions. The electrolysis of water from renewable energies leads to the production of green hydrogen, which could also be produced from biomass. The report, which NITI Aayog prepared with the Rocky Mountain Institute, says three hydrogen corridors should be developed across the country based on the state’s grand challenges.

NITI Aayog believes that green hydrogen would play an immense role in moving the country towards its decarbonization goals. India also happens to be one of the major economies that have committed to achieving net zero emissions targets.

NITI Aayog CEO Amitabh Kant said, “Green hydrogen can help India significantly reduce its dependence on imported fuel and therefore inter-ministerial interventions are needed to promote production and ‘use of green hydrogen’, as reported by the Economic Times.

What should the government do?

Governments should provide grants and loans to start-ups and projects and support entrepreneurs through incubators and investor networks. It should also put in place regulations that can manage first-mover risk. The report adds that creating demand in niche markets and attracting private investment would be one of the highest priorities, and that the government could use a combination of public procurement and procurement incentives to achieve it.

He said sweeping improvements in the speed of regulatory approvals and preferential treatment in public tenders would help local manufacturing. States should be encouraged to launch their green hydrogen policies to complement efforts at the national level. He suggested the government initiate green hydrogen standards and a labeling scheme.

The report aims to serve as an essential knowledge base for Indian policy discourse on green hydrogen.

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