Cabinet approves National Green Hydrogen Mission

The Union Cabinet has approved National Green Hydrogen Mission with a financial outlay of Rs 197.44 billion upto 2029-30. The total outlay includes an outlay of Rs 174.90 billion for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) programme, Rs 14.66 billion for pilot projects, Rs 4 billion for research and development (R&D), and Rs 3.88 billion towards other mission components. The Ministry of New and Renewable Energy will formulate the scheme guidelines for implementation of the respective components.

The mission’s likely outcomes include development of green hydrogen production capacity of at least 5 million tonne (mt) per annum, with an associated renewable energy capacity addition of about 125 GW, by 2030. The targets are likely to bring in over Rs 8 trillion investments and create over 600,000 jobs. It will lead to cumulative reduction in fossil fuel imports of over Rs 1 trillion, and result in abatement of nearly 50 mt of annual greenhouse gas emissions by 2030.

The mission will facilitate demand creation, production, utilisation and export of green hydrogen. It will have wide ranging benefits including 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.

Under the SIGHT programme, two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers 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 utilisation 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.