India warns retaliatory trade barriers on Green Hydrogen Trade

While addressing the first International Conference on Green Hydrogen in New Delhi, Union Minister, R.K Singh warned of retaliatory trade barriers in case “certain countries” continue to put up trade barriers.

Giving an example of such untenable trade barriers he cited the condition of Green Hydrogen Purchase tender of Germany with the European Union. As per the condition, the maximum distance between the electrolyzers and and the source of generation of renewable energy should not be more than 500 KM. Reacting to the condition, he said,” Is there any logic here? We transport electricity for thousands of kms. We are setting up 13,000 MW of renewable energy capacity in Ladakh. And, we will be transferring that green electricity across our country.” It is worth mentioning that, last month, India had discussed these issues with Germany and called the conditions as “slightly restrictive.”

Thrashing upon their double standards on de-carbonization, Singh said,” If you talk about barriers, stop talking about going green.” Furthermore, he also said, “If you set up barriers then you are not helping the cause of the world to attain net zero.”  Union Minister also warned that if New Delhi presses retaliatory sanctions, many country will face barriers in entering the biggest market outside China.

India, a bright spot for green hydrogen

Clearly, India is making strides for being the global leader in green hydrogen production. As per Niti Aayog, it is difficult for India to compete with the countries in grey or blue hydrogen production. But having low Levelized Cost Of Electricity (LCOE) through wind and solar energy, India has the opportunity to produce cheaper hydrogen fuel. And so, the government allocated Rs. 19,744 crores for the National Green Hydrogen Mission in January. Even in April this year, government provisioned an incentive plan worth Rs 174.9 billion for the production of green hydrogen.

All these measures are taken by the government to meet the targeted production of 5 million tonnes of green hydrogen by 2030. But to make it happen, technical advancements are needed. Hence, India is urging investors to invest in India and become partner in production process.  As hydrogen is better known as a future fuel, it is way more environmental friendly than the EVs. So clearly, the efforts of the government are far reaching. Trade barriers like these will eventually deteriorate the global supply chains of green hydrogen.