The Union Cabinet, chaired by Prime Minister Narendra Modi has approved the National Green Hydrogen Mission with an initial outlay of Rs 19,744 crore, including Rs 17,490 crore towards SIGHT programme (Strategic Interventions for Green Hydrogen Transition Programme), Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other mission components. The Ministry of New and Renewable Energy will formulate the scheme guidelines for implementation of the respective components.
The government says the mission will result in the following likely outcomes by 2030:
- Development of green hydrogen production capacity of at least 5 MMT (million metric tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country.
- Total investments of over Rs 8 lakh crore in the sector.
- Creation of over 6 lakh jobs.
- Cumulative reduction in fossil fuel imports over Rs 1 lakh crore.
- Abatement of nearly 50 MMT of annual greenhouse gas emissions
In terms of benefits, the government expects it will create new 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.
Central and State governments to encourage production and utilisation
India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW. The targets by 2030 is likely to bring in over Rs 8 lakh crore investments and create over 6 lakh jobs. Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.
The mission will facilitate demand creation, production, utilisation 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.
The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs.
An enabling policy framework will be developed to support establishment of a green hydrogen ecosystem. The government is also planning to introduce robust standards and regulations framework. Further, a public-private partnership (PPP) 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 initiative.
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 objectives.
