The World Bank has approved an additional $1.5 billion loan to support India’s Green Hydrogen Mission, marking the second installment of aid for this initiative and increasing the total assistance to $3 billion. This funding aims to strengthen India’s domestic green hydrogen market and implement reforms to attract private investment, aligning with targets set by the National Green Hydrogen Mission.
Auguste Tano Kouame, the World Bank’s Country Director for India, praised India’s advancements, highlighting the issuance of tenders and expressions of interest totaling $70 billion. He underscored the significant progress made within a year, describing it as a milestone achievement.
The Second Low Carbon Energy Programmatic Development Policy Cooperation will facilitate reforms to enhance green hydrogen production, focusing on critical technologies such as electrolyzers. The initiative also supports reforms aimed at promoting renewable energy, including incentives for battery energy storage solutions.
Under this program, the World Bank aims to assist India in achieving an annual production of at least 450,000 metric tonnes of green hydrogen and installing 1,500 MW of electrolyzers starting from FY 2025-26.
Encouraging private sector participation is a central objective. Mr. Kouame emphasized the low risk associated with producing green hydrogen in India due to significant government measures and no apparent constraints currently visible. He urged the implementation of swift regulatory frameworks to further attract private entities, suggesting that partnerships with the banking sector could play a crucial role in expanding the domestic market.
The World Bank views its involvement in India’s green hydrogen sector as one of its most ambitious programs. Success in this endeavor could position India as a leading global producer of green hydrogen, potentially creating substantial employment opportunities. Mr. Kouame highlighted the mission’s goal of generating 600,000 jobs, emphasizing their inclusivity, particularly benefiting women due to their knowledge-oriented and less labor-intensive nature.
This initiative not only aims to advance India’s green energy objectives but also seeks to stimulate economic growth through sustainable practices and the creation of new jobs.
