India in talks to supply 10m tonnes of green hydrogen to EU
Last updated on: 05 July,2023 04:22 pm
Minister warns of retaliatory barriers on its trader, saying some countries are putting barriers
NEW DELHI (Reuters) – India has hosted talks on a possible deal to supply 10 million metric tonnes of green hydrogen to the European Union, which in turn would invest in one such clean energy project in India, two government and one industry source told Reuters.
On Tuesday, Reuters reported India will consider bilateral agreements with countries to allow them to use carbon credits linked to the production green hydrogen, or hydrogen made using renewable energy, in India in exchange for investment and purchase deals.
Under the plan, EU businesses could invest in the projects in India and claim carbon credits, one of the officials, who attended a meeting that took place on Wednesday in New Delhi, said.
The meeting was attended by officials from EU governments and Indian renewable companies, including Avaada Group, Renew Power and ACME Group.
None of the officials who spoke to Reuters wished to be named as discussions are ongoing.
India's renewable energy ministry, an Indian government spokesperson and a communication officer at the EU office in New Delhi did not immediately reply to requests for comment.
Across the globe, countries are turning to hydrogen to drive an energy transition from fossil fuels and attempts to address global warming.
India last year sought to further its ambitions to become a major green hydrogen exporter through the approval of a 174.9 billion rupees ($2.13 billion) incentive plan and a target to produce 5 million tonnes of green hydrogen by 2030.
On the other hand, the nation's renewable energy ministry said at a conference on Wednesday that India will put up barriers in green hydrogen trade in response to other nations imposing restrictions.
As one of the world's biggest emitters of climate-warming gases, India is betting on green hydrogen to help cut its emissions and to reach its target of achieving net-zero carbon emissions by 2070.
"Some countries are putting barriers on green hydrogen (trade and technology). If they are putting up barriers we will also put up barriers, then you will be losing out on our market," Power and Renewable Energy Minister R K Sing said at the International Conference on Green Hydrogen.
Singh did not elaborate on what India's retaliatory barriers may be. He told the conference that Indian companies have already set plans to manufacture 3.5 million tonnes of green hydrogen.
Last year, New Delhi approved a 174.9 billion rupees incentive plan for the fuel, which is made using renewable energy and without producing greenhouse gases. Prime Minister Narendra Modi has set a target to produce 5 million tonnes of green hydrogen by 2030.
Earlier this year, Singh said that huge subsidies announced by some developed countries for their green hydrogen sectors can distort trade and is in violation of World Trade Organization (WTO) norms.