The World Bank has approved an additional $1.5bn loan to support India’s green hydrogen and renewable energy plans, slated to result in the production of 450,000 tonnes of hydrogen.
Under the bank’s Second Low-Carbon Energy Programmatic Development Policy Operation, the loan will support “reforms” to bolster green hydrogen production and electrolysers, as well as renewable energy penetration.
Expected to result in the production of 450,000 tonnes of green hydrogen and 1.5GW of electrolyser per year from 2025/26, the reforms are also hoped to support steps in developing a national carbon credit market.
Hoped to promote the development of green hydrogen, continued renewable energy scale-up and the stimulation of low-carbon energy finance, it follows an initial $1.5bn loan under the first programme in 2023.
Read more: World Bank supports India’s green hydrogen and renewable energy development with $1.5bn
Funded by a $1.46bn International Bank for Reconstruction and Development (IBRD) loan and a $31.5m credit from the International Development Association (IDA), leaders of the programme believe the loan will contribute towards India meeting its Nationally Determined Contributions (NDC) targets.
Aurélien Kruse, Xixodong Wang and Surbhi Goyal, who head up the operation, said India has already taken “bold action” on green hydrogen development through its National Green Hydrogen Mission’s incentive scheme.
“The operation is helping in scaling up investments in green hydrogen and in renewable energy infrastructure,” they said.
India launched its National Green Hydrogen Mission in 2023 as part of a wider objective to become energy-independent by 2047 and achieve Net Zero emissions by 2070. The mission aims to redirect the current production of grey hydrogen to clean hydrogen. There is a target to produce five million tonnes of green hydrogen by 2030.
The mission, which addresses domestic markets and export opportunities, will be implemented in two phases: Phase 1 (2022/23 to 2025/26) will focus on deploying green hydrogen in sectors already using grey hydrogen to drive down costs; and Phase II (2026/27 to 2029/30) will focus on deploying green hydrogen in new sectors.
The government has established a programme (SIGHT) to provide incentives and subsidies for locally made electrolysers and green hydrogen production as well as demonstration projects.
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