European companies would be able to invest in Indian projects and receive carbon credits

The EU is in discussions with the Indian government about supplying 10 million tonnes of green hydrogen to the bloc annually, according to Reuters.

The news agency reports that discussions between EU, Indian officials and representatives of Indian green hydrogen producers took place in New Delhi on Tuesday, citing four sources.

India is also in talks with Singapore about supplying the city state with five million tonnes of green ammonia per year — which would require about one million tonnes of green hydrogen, Reuters states.

“The bilateral agreements being discussed with the EU and Singapore present a significant business opportunity for Indian green hydrogen manufacturers," said Vineet Mittal, chairman of Mumbai-based Avaada, a renewable energy developer working on green H₂ projects.

Reuters adds that India is considering allowing foreign entities that invest in green hydrogen production in India, or buy renewable H₂ from India, to receive carbon credits.

Earlier this week, India received $1.5bn from the World Bank to support its green hydrogen programme and help set up a national carbon credit trading scheme.

And last week, the country revealed that it would offer green hydrogen production subsidies of up to $0.60/kg, but only for three years — a fraction of the incentives on offer in other parts of the world, such as the $3/kg tax credit in the US, which lasts for ten years.

This, in itself, might not be high enough to attract foreign investors, so the added bonus of carbon credits could be significant.

The EU plans to import ten million tonnes of green hydrogen annually from outside the bloc by 2030, as well as produce ten million tonnes in the 27 member states by the same date.

Source:HydrogenInsight