Cabinet nod to National Green Hydrogen mission, ₹19744-Cr fund

National green hydrogen mission aims to make India a global hub for production, utilization and export of green hydrogen and its derivatives

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Green Hydrogen Standard

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved National Green Hydrogen Mission along with an initial outlay of ₹19,744 crore, which includes ₹17,490 crore for programme, ₹1,466 crore for pilot projects, ₹400 crore for research and development and ₹388 crore towards other components of the mission.

The ministry of new and renewable energy (MNRE) has been tasked to formulate the scheme guidelines for implementation of the respective components. Officials said that the mission would result in development of green hydrogen production capacity of at last 5 million metric tonne (MMT) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.

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The government has proposed to invest a sum of ₹8 lakh crore on the mission, which intends to create about six lakh jobs and save the nation about ₹1 lakh crore on import of fossil fuel. The programme would also curb release of 50 MMT of annual greenhouse gas emissions.

Besides, the mission will have wide ranging benefits- creation of export opportunities for green hydrogen and its derivatives; decarbonisation 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.

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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 electrolysers and production of Green Hydrogen – will be provided under the Mission.

Officials said that 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.

An enabling policy framework will be developed to support establishment of green hydrogen ecosystem.   A robust standards and regulations framework will be also developed.  Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission; R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies.  A coordinated skill development programme will also be undertaken under the mission.

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All concerned ministries, departments, agencies and institutions of the Central and state governments will undertake focussed and coordinated  steps to ensure successful achievement of the mission objectives.  MNRE will be responsible for overall coordination and implementation of the mission.