Incentives for green hydrogen projects include:

 Incentives for green hydrogen projects include:

Direct incentives

In India, the Ministry of New and Renewable Energy (MNRE) offers a direct incentive of ₹50 per kilogram of green hydrogen in the first year, ₹40 per kilogram in the second year, and ₹30 per kilogram in the third year. 

Government incentives

The Solar Energy Corporation of India (SECI) offers incentives to companies that build facilities to produce green hydrogen. For example, Reliance Green Hydrogen and Green Chemicals Ltd received incentives to produce 90,000 tonnes of green hydrogen over three years. 

Tax deductions

The Income Tax Act offers a 125% tax deduction for assets used to generate electricity from renewable energy, including green hydrogen production. The Act also offers a 150% tax deduction for qualifying R&D expenditure. 

Public and private funding

The European Union's Clean Hydrogen Partnership (IPCEI) offers public funding of $13.2 billion and private financing of $16.8 billion for projects that cover the entire clean hydrogen value chain. The IPCEI also offers subsidies of up to €105.4 million to create hydrogen valleys. 

Green hydrogen is produced by using renewable electricity to electrolyze water. It has the potential to reduce global warming, reduce dependence on fossil fuels, and be used in heavy industry, long-haul transport, and long-term energy storage.