New Delhi: The World Bank has approved an additional $1.5 billion loan to support India's Green Hydrogen Mission, marking the second tranche of aid for this initiative and bringing the total assistance to $3 billion. The goal is to bolster India's domestic green hydrogen market and enact reforms aimed at attracting private investment, aligning with targets set by the National Green Hydrogen Mission.
Auguste Tano Kouame, World Bank's Country Director for India, commended India's progress, noting the issuance of tenders and expressions of interest worth $70 billion. He emphasized the significant strides made within a year, stating, "This marks great progress."
The Second Low Carbon Energy Programmatic Development Policy Cooperation will facilitate reforms to enhance green hydrogen production, focusing on critical technologies like electrolyzers. The initiative also supports reforms to promote renewable energy, including incentives for battery energy storage solutions.
Under this program, the World Bank aims to help India achieve an annual production of at least 450,000 metric tonnes of green hydrogen and 1,500 MW of electrolyzers starting from FY 2025-26.
Encouraging private sector involvement is a key objective. Mr. Kouame emphasized, "Producing green hydrogen in India is not risky. The government has taken significant measures, and there are currently no apparent limitations." He urged swift regulatory frameworks to further attract private players, suggesting that the banking sector could play a pivotal role in boosting the domestic market through partnerships.
The World Bank considers its operation in India's green hydrogen sector as one of its most ambitious programs. If successful, it could position India as a leading global producer of green hydrogen, potentially generating substantial green jobs. Mr. Kouame highlighted, "India's Green Hydrogen Mission aims to create 600,000 jobs, which is a significant figure for a single industry. These jobs are inclusive, particularly conducive to women, being less labor-intensive and more knowledge-oriented."
The initiative not only aims to advance India's green energy goals but also to foster economic growth through sustainable practices and job creation.