Federal government may allocate funds for green hydrogen in the upcoming budgetNew Delhi: Federal government may offer financial incentives and allocate funds for promotion of green hydrogen in the country in the forthcoming spending plan for 2022-23, which is set to be presented by finance minister Nirmala Sitharaman in Parliament on February 1.

The federal government had released National Hydrogen Objective in 2021.

Earlier this month, Power and New - & Renewable resource minister R K Singh had actually indicated that a green hydrogen policy will be revealed in February which would include lots of incentives to enhance green hydrogen in the nation.

While 2021 saw the launch of National Hydrogen Objective, it is most likely that the Budget may attend to targeted financial incentives for R&D in green hydrogen segment, production of domestic supply chain for hydrogen and lower custom-mades responsibilities on electrolysers to boost green hydrogen production, states Venkatesh Raman Prasad, Partner, J Sagar Associates (JSA).

Mr Prasad is of the view that India's commitment at police 26 of achieving net no emissions by 2070 and fulfill 50 percent of energy requirements from renewable energy by 2030 shows that the federal government intends to focus on cleaner sources of energy.Hemant Mallya, Senior citizen Programme Lead, Council on Energy, Environment and Water (CEEW) suggests that green hydrogen has numerous industrial usages and can possibly decarbonise numerous hard-to-abate sectors, like the iron and steel industry.He says that an outlay of Rs 1,200 crore by 2024 in the upcoming Spending plan might activate pilots in different end-use applications such as screening green hydrogen preparedness of gas pipelines, underground hydrogen storage, and pilots for devices such as heaters, boilers, and procedure heaters.Mr Mallya suggests that another Rs 165 crore could support R&D, particularly on catalysts and electrolyser membranes, discovering substitutes for crucial minerals, setting up testing labs and enforcing safety standards.These investments would assist indigenise green hydrogen production and usage as a commercial fuel, he opines.Davinder Sandhu, Co-founder - & Chairman, Primus Partners states that electrolysers used to make hydrogen at present are expensive and lowering their expense will add to decreasing the cost of green hydrogen.This will allow the country to meet the target of establishing 10 gigawatt of domestic production capacity in addition to making India an international leader in the sector, he believes.