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India in talks to supply green hydrogen to EU, Singapore -sources
Global Banking & Finance Review®
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By Sarita Chaganti Singh
NEW DELHI (Reuters) – India has discussed a possible deal to supply more than 11 million metric tons a year of green hydrogen to the European Union and Singapore, who in turn would invest in these Indian clean energy projects, three government officials and one industry source said.
Reuters reported on Tuesday that New Delhi will consider bilateral agreements which would allow countries to use carbon credits linked to producing so-called green hydrogen, which is made using renewable energy.
India and the EU explored green hydrogen agreements for 10 million metric tons per annum under which businesses in the bloc could invest in projects in India and claim carbon credits, one of the officials, who attended a meeting on Wednesday in New Delhi, told Reuters.
Singapore is looking to get 5 million metric tons per annum of green ammonia through similar bilateral agreements, which is equivalent to another 1-1.5 million metric tons a year of green hydrogen, another official said.
The officials did not give details on the length or the starting year of such contracts.
Green ammonia, generally the preferred form in which the fuel is transported, is a green hydrogen derivative.
None of the officials wanted to be named as talks are ongoing.
India’s renewable energy ministry, an Indian government spokesperson and a communications officer at the EU office in New Delhi did not immediately reply to requests for comment.
The meetings hosted by the Indian government on Wednesday were also attended by Indian renewable companies including Avaada Group, Renew Power and ACME Group.
“The bilateral agreements being discussed with the EU and Singapore present a significant business opportunity for Indian Green Hydrogen manufacturers,” Avaada Chairman Vineet Mittal said.
Indian companies such as Reliance Industries, Indian Oil and Adani Enterprises have big plans for green hydrogen.
Countries around the globe are turning to hydrogen to drive a transition away from fossil fuels to address global warming.
India last year sought to further its ambitions to become a major green hydrogen exporter through the approval of a 174.9 billion rupees ($2.13 billion) incentive plan and a target to produce 5 million tonnes of green hydrogen by 2030.
($1 = 82.2050 Indian rupees)
(Reporting by Sarita Chaganti Singh; Writing by Aftab Ahmed; editing by Barbara Lewis and Alexander Smith)
Green hydrogen is hydrogen produced using renewable energy sources, resulting in minimal carbon emissions during its production process.
Carbon credits are permits that allow the holder to emit a certain amount of carbon dioxide or other greenhouse gases, incentivizing reductions in emissions.
Green ammonia is ammonia produced using renewable energy sources, often derived from green hydrogen, and is used as a sustainable energy carrier.
Renewable energy is energy generated from natural resources that are replenished over short periods, such as solar, wind, and hydro power.
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