Government of India has approved the National Green Hydrogen Mission, which is aimed at making India the global hub for the production of green hydrogen. The total outlay for the mission is Rs. 197.44 billion, out of which the government has allocated Rs. 174.90 billion for the SIGHT programme, Rs. 14.66 billion for the upcoming pilot projects, Rs. 4 billion for R&D, and Rs. 3.88 billion towards other mission components.
“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission,” Union Minister Anurag Thakur said while briefing reporters about the Cabinet decisions.
The National Hydrogen Mission was launched on August 15, 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy. The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.
The mission seeks to promote the development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
It envisages an investment of over Rs. 8000 billion and creation of over 6,00,000 jobs by 2030. It will also result in a cumulative reduction in fossil fuel imports of over Rs. 1000 billion and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.
The mission will have wide-ranging benefits — creation of export opportunities for green hydrogen and its derivatives; decarbonization of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies, an official statement said.
The mission will facilitate demand creation, production, utilization and export of green hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms — targeting domestic manufacturing of electrolyzers and production of green hydrogen — will be provided under the mission.
The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilization of hydrogen will be identified and developed as Green Hydrogen Hubs, the Minister added.
An enabling policy framework will be developed to support establishment of the green hydrogen ecosystem. A robust standards and regulations framework will be also developed.
