India has the potential to emerge as a global leader in green hydrogen production, having already secured commitments of $70 billion in investments, according to World Bank Country Director Auguste Tano Kouame.
In a detailed interview with CNBC-TV18, Kouame indicated that India is on a track to meet or surpass its target of attracting $100 billion in investments in green hydrogen and electrolyser manufacturing.
Speaking ahead the announcement of a second $1.5 billion loan for India’s national green hydrogen mission, the World Bank’s India Head noted that the first $1.5 billion development finance loan, granted in June 2023, brought the total assistance to date to $3 billion.
This financial support program aims to boost India’s efforts to enhance green hydrogen and electrolyzer production, as well as to increase the integration of renewable energy into the grid. The loan intends to incentivize battery energy storage solutions and streamline the integration of renewable energy sources.
The World Bank highlighted that the initial $1.5 billion loan has already been fully utilized. It was intended to eliminate transmission charges for green hydrogen producers and establish a legal framework for a national carbon credit market.
Kouame emphasized that India has a well-defined strategy for both producing and consuming green hydrogen. He outlined additional measures the Indian government could implement, such as facilitating access to land for green hydrogen and electrolyzer production, promoting bulk purchase agreements to reassure green hydrogen producers, investing in skills and talent for the sector, and ensuring prompt resolution of conflicts to reassure investors.
