(CTN News) – India has been provided with an additional loan in the amount of $1.5 billion by the World Bank to assist it in achieving its goals regarding green hydrogen and renewable energy. The execution of these plans is expected to result in the production of 450,000 tons of hydrogen, according to the projections.
This loan will be used to promote “reforms” that will enhance the production of green hydrogen and electrolyzers, as well as the penetration of renewable energy sources. This will be done as part of the World Bank’s Second Low-Carbon Energy Programmatic Development Policy Operation. At the same time, this will be carried out.
It is anticipated that the changes would result in the yearly production of 445,000 tons of environmentally friendly hydrogen and 1.5 gigawatts of electrolyzers by the beginning of fiscal year 2025/26.
This estimation is based on the fact that the reforms will be implemented. Furthermore, it is hoped that the World Bank reforms will make it possible to establish a national market for carbon credits. This is in addition to the previously mentioned benefits.
This is in continuation of the granting of an initial loan in the amount of $1.5 billion that was made available in 2023 as a component of the initial program.
With the help of this loan, we hope to encourage the manufacture of ecologically friendly hydrogen, as well as the creation of green hydrogen, the continuous scaling up of renewable energy, and the encouragement of low-carbon energy financing.
The leaders of the program believe that the loan, which is funded by a loan from the International World Bank for Reconstruction and Development (IBRD) in the amount of $1.46 billion and a credit from the International Development Association (IDA) in the amount of $31.5 million, will significantly help to India’s achievement of its Nationally Determined Contributions (NDC) targets.
Aurélien Kruse, Xixodong Wang, and Surbhi Goyal, the individuals who are in charge of the operation, have asserted that India has already taken “bold action” on the development of green hydrogen through the incentive scheme that is provided by its National Green Hydrogen Mission.
This assertion was made by the individuals who are in charge of the operation. The personnel who are in command of the operation have made this statement according to the statement.
In a statement that was issued by the corporation, it was stated that the operation is contributing to the increase of investments in green hydrogen as well as infrastructure for renewable energy sources.
With the goal of achieving World Bank Net Zero emissions by the year 2070 and simultaneously being energy independent by the year 2047, India initiated the National Green Hydrogen Mission in 2023. This was a World Bank component of a larger ambition to achieve both of these goals simultaneously. Both of these objectives were going to be pursued at the same time.
Grey hydrogen, which is now being created, will be employed in order to make clean hydrogen, which will be used for the purpose of achieving the objective of the mission. One of the goals that has been established for the year 2030 is to achieve the generation of five million tons of hydrogen that is environmentally friendly.
This World Bank mission will be implemented in two phases in order to address domestic markets and opportunities for export. Phase 1 (2022/23 to 2025/26) will concentrate on deploying green hydrogen in industries that are already utilizing grey hydrogen to drive down costs, and Phase II (2026/27 to 2029/30) will concentrate on deploying green hydrogen in new industries.
Both phases will be implemented in order to address domestic markets and opportunities for export. The implementation of both phases will be carried out in order to fulfill the requirements of domestic markets and opportunities for export.
In order to enable demonstration World Bank projects and provide financial incentives and subsidies for the production of environmentally friendly hydrogen and electrolyzers that are manufactured locally, the government has established a program that is known as SIGHT.
This program’s purpose is to facilitate demonstration projects. The goal of this program is to provide financial help in the form of subsidies and incentives.
Source: World Bank
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Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
