The Ministry of New and Renewable Energy (MNRE) has notified the National Green Hydrogen Mission.
Mission objectives: The objective of the mission is to make India the global hub for production, usage and export of green hydrogen and its derivatives. This will contribute to India’s aim to become Aatmanirbhar through clean energy. The mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in green hydrogen.
The mission will support replacement of fossil fuels and fossil fuel based feedstocks with renewable fuels and feedstocks based on green hydrogen. This will include replacement of hydrogen produced from fossil fuel sources with green hydrogen in ammonia production and petroleum refining, blending green hydrogen in city gas distribution systems, production of steel with green hydrogen, and use of green hydrogen-derived synthetic fuels (including green ammonia, green methanol, etc.) to replace fossil fuels in various sectors including mobility, shipping, and aviation. The mission also aims to make India a leader in technology and manufacturing of electrolysers and other enabling technologies for green hydrogen.
Outcomes: To achieve the above objectives, the mission will build capabilities to produce at least 5 million tonne (mt) of green hydrogen per annum by 2030, with potential to reach 10 mt per annum with growth of export markets. Further, it includes development of 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 a cumulative reduction in fossil fuel imports of over Rs 1 trillion and result in the abatement of nearly 50 mt of annual greenhouse gas emissions by 2030.
Mission components: The achievement of mission objectives requires a comprehensive strategy that coordinates efforts across multiple sectors. The mission strategy comprises interventions for
- demand creation by making green hydrogen produced in India competitive for exports and through domestic consumption;
- addressing supply-side constraints through an incentive framework; and
- building an enabling ecosystem to support scaling and development.
Financial outlay: The initial outlay for the mission will be Rs 197.44 billion, including 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, and Rs 3.88 billion towards other mission components. The MNRE will formulate the scheme guidelines for the implementation of the respective components.