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according to Niti Aayog and are hesitant to under Article 6 of the Paris consider implementing a
RMI. The move encourages finance/refinance large-scale Agreement. It will help nationwide policy mandating
manufacturers and project green hydrogen projects. create a marketplace for the use of Green M15 fuel i.e.
developers to invest in green • The production cost of Indian green fuels like green mixing 15 per cent green
hydrogen and its derivatives various green fuel hydrogen and its methanol with petrol, in
like green ammonia and technologies, such as green derivatives, green methanol, transportation and other
methanol, putting India among hydrogen and its and SAF, among others, in applicable sectors, supported
those leading countries, such derivatives, is higher. the international market. by incentives for producers
as the United States and the However, grey hydrogen, • There’s a need for speeding and consumers to adopt this
European Union, which have alongside various grey up strategic interventions fuel. This could be a pivotal The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the
allocated public funding for manufacturing methods, has for the Green Hydrogen step in India's journey development of India, partnering Industry, Government, and civil society through working closely with
green hydrogen. towards a greener and more Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness
historically benefited from Transition Program by and business opportunities for Industry.
subsidies. Without a robust offering incentives for both sustainable future.
Establishing a market for green and liquid global carbon green hydrogen production • To ensure widespread
ammonia and methanol is a market, pricing the value of and electrolyser availability of Green M15 fuel, For more than 125 years, CII has been engaged in shaping India’s development journey and works
global issue. In India, carbon and embedded manufacturing. These there’s a need for investment proactively on transforming Indian Industry’s engagement in national development. The premier business
forward-thinking standards by emissions in the production initiatives will catalyze in the necessary association has over 9000 members, from the private as well as public sectors, and an indirect membership
the Bureau of Indian Standards, and usage of grey hydrogen industry growth. infrastructure for its of over 300,000 enterprises from around 294 national and regional sectoral industry bodies.
such as blending DME with becomes challenging. This is production, distribution, and With 62 offices, including 10 Centres of Excellence in India, and 8 overseas offices in Australia, Egypt,
LPG and methanol with diesel, why, initially, green • The cost of renewable storage. Germany, Indonesia, Singapore, UAE, UK, and USA, as well as institutional partnerships with 394
are significant steps towards hydrogen seems more energy can be further counterpart organizations in 133 countries, CII serves as a reference point for Indian Industry and the
integrating green fuels. reduced through energy • Campaigns should be
expensive than grey surplus banking provisions, launched to educate the international business community.
hydrogen.
especially for sectors public and other stakeholders
• The cost of funding remains mandated to use green about the benefits of using
a persistent bottleneck, hydrogen. Green M15 fuel and address
presenting a considerable • The government should misconceptions.
challenge for project implement targeted
developers, impacting the incentives to boost the By adopting these
optimization of capital export of green molecules. recommendations, India can
expenditure and project It will help establish India as make significant strides towards
execution. energy self-reliance,
a global leader in environmental sustainability, and
renewable energy.
Suggestions • A mechanism should be economic growth.
developed to facilitate Conclusion CII Research is an Industry think-tank providing thought leadership on strategic economic and industry
Challenges To address the challenges, we low-cost financing and issues critical to national growth and development. Drawing on a deep reservoir of industry leaders and
industry associations spanning all sectors and present across the country, CII Research originates
provide benefits like
suggest that the government
take several steps to provide a accelerated depreciation This is the time to take analytical reports in consultation with stakeholders. Based on strategic perceptions and data, these
Despite government efforts much-needed boost to the for green hydrogen immediate action to overcome in-depth insights suggest specific policies and action plans that would enhance the role of Indian industry
to promote green hydrogen industry, such as: infrastructure investments. all the bottlenecks on the road in nation-building.
and its derivatives, the sector • The government should towards leading the global
is still in its infancy, and • As in the initial days of expand the FAME India transition to sustainable energy.
acknowledging and addressing renewable energy, the (Faster Adoption and With right policies in place and Confederation of Indian Industry
the hurdles that impede our government mandated its Manufacturing of (Hybrid the development of a market for The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi – 110 003 (India)
full potential in this critical usage through Renewable &) Electric Vehicles in India) green methanol and ammonia, T: 91 11 45771000 • E: info@cii.in • W: www.cii.in
sector is essential. Among the Purchase Obligation (RPO). Scheme to include green India can unlock the full
various challenges are - potential of green hydrogen and
Similarly, we suggest that a methanol vehicles in it. It its derivatives. Moreover, it will
• There isn’t much existing quota should be mandated will not only boost the provide a much-needed boost
demand and a developed for the use of green market but also provide for the production, distribution, cii.in/fecebook cii.in/twitter cii.in/linkedin cii.in/youtube
market ecosystem for hydrogen in sectors like support to the green and usage of green hydrogen and
green hydrogen and its fertilizers, chemicals, steel, hydrogen ecosystem in the its derivatives across sectors.
derivatives like green and power generation. country. Such initiatives will not only help Reach us via our Membership Helpline Number: 00-91-99104 46244
ammonia and methanol, not Creating demand through • There’s a need for funding India in achieving targeted CII Helpline Toll Free Number: 1800-103-1244
only in India but also policy will spur sectoral and support for research climate goals but also position it
globally, compared to other growth and reduce the and development in the as a leader in the green energy
conventional fuels. production cost of green areas of green hydrogen revolution.
hydrogen.
• Project developers face and methanol-based
difficulty in getting final • Leveraging its international technologies. It will further
offtake agreements signed. relations, the government help enhance efficiency and
should expedite the signing reduce costs.
• In the absence of advance
offtake contracts, lenders of bilateral agreements • The government should