Green hydrogen, which is produced using renewable energy, is considered a key element in the transition to a low-carbon economy. Both India and China have recognized the potential of green hydrogen and have implemented policies to develop their own industries. In this blog article, we will compare the green hydrogen policy of India with that of China.

China is currently the world’s largest hydrogen producer, with an output of around 33 million tonnes annually. This accounts for about a third of global demand, which places China in a unique position to become a major player in the global green hydrogen market. However, this potential is contingent on China’s ability to shift away from grey hydrogen production, which is produced using fossil fuels.

China’s green hydrogen industry is expected to grow rapidly with the support of government investment. The country aims to produce 200,000 tonnes of the renewable fuel by 2025, with 50,000 hydrogen-fuelled vehicles on the roads that same year. By 2050, hydrogen is expected to account for between 10 and 12 percent of China’s energy consumption, and a transition to green hydrogen is essential to meeting the government’s decarbonization targets. To achieve this goal, China plans to install 38 GW of electrolyzer capacity by the end of the decade. Additionally, Sinopec, China’s largest oil refiner, plans to build the world’s largest green hydrogen facility, which will be powered by a 300 MW photovoltaic plant. This plant is expected to begin operations in June 2023 and will produce 20,000 tonnes of green hydrogen annually.

In comparison, India has set an ambitious target of manufacturing 60-100 GW of electrolyzer capacity by 2030. This is a considerable increase from the current global capacity of 8 GW. The primary objective of India’s green hydrogen policy is to establish itself as an export hub to the Middle East, Southeast Asia, and Africa. To achieve this goal, the Indian government plans to attract global investors.

The Indian government is implementing several policies to achieve its green hydrogen target. For example, the government has waived the customs duty on materials required for the manufacturing of electrolyzers. Additionally, it has allocated a budget of INR 4,500 crore for the development of green hydrogen.

Both India and China are taking significant steps towards developing their green hydrogen industries. However, China currently has a larger production capacity, and its government has allocated significant investment towards developing green hydrogen. On the other hand, India has set an ambitious target for electrolyzer capacity and aims to become a global export hub. The success of both countries in their green hydrogen policies will depend on their ability to attract investors and shift away from grey hydrogen production.