India will become a major green hydrogen hub in all aspects – production, consumption and exports – by 2040, petroleum and natural gas minister Hardeep Singh Puri on Wednesday said at a CII event.
“By 2040, India will be a major green hydrogen hub with demand, production, and consumption all in India, including major exporting of green ammonia and others. I am very bullish on these next 15 years,” the oil minister said.
The government, in its Budget for FY24, announced Rs 19,700 crore under production linked incentive (PLI) scheme to promote green hydrogen.
“The PLI amount is just a catalyst. There is no dearth of resources. Money is coming in green hydrogen. India will be in the forefront of advancements in green hydrogen and not a follower,” he said.
Indian economy will grow beyond $20 trillion and per capita income will grow by 10 times from now in the next 15 years, he said.
“In 15 years time, by 2040 India will be a $20 trillion economy… $22-$23 trillion economy, which means per capita income will be 10 times,” Puri said while speaking on India’s energy requirement and transition to green energy.
Considering the energy requirement of a growing India, he said that while the exploration and production (E&P) activities will go up exponentially, increased affordability and spending power will make green transition even faster.
Puri called on the industry people attending the two-day annual event of the Confederation of Indian Industry (CII) to make their investment decisions based on the forecast that 25% of the global demand in the next 20 years till 2045 will come from India.
“This growth will take place, transition to green energy will take place and that is the real story that is unfolding,” he said, adding that while global increase in demand per capita is 1%, growth in India is thrice that much.
The diplomat-turned-politician said that at the rate at which India became the fifth largest economy from being the 10th largest, it will go on to become a $4.3 trillion economy from the current $3.8 trillion to being the third largest in the world.
While India has set 2070 as the deadline for its net zero commitment, several companies like Indian Oil (IOCL) and Bharat Petroleum (BPCL) have set their individual target as 2046 and 2040, respectively, the minister said.
As part of energy transition, ethanol blending that used to happen at 1.4% in 2014 achieved 10% target in November 2022, five months in advance. Also, the deadline for 20% blending target has been pre-poned to 2025, ahead of earlier target of 2030. Puri said the transition is happening fast.