January 2023

In January 2023, the union cabinet approved the much-awaited National Green Hydrogen Mission with an initial outlay of Rs 197 billion. Following this, the Ministry of New and Renewable Energy released the detailed mission document with the objective of making India a global hub for the production and export of green hydrogen and its derivatives. It aims to develop a domestic green hydrogen production capacity of at least 5 million metric tonnes per annum with an associated renewable energy capacity of 125 GW by 2030.

A major part of the outlay for the mission, around Rs 175 billion, has been earmarked for the Strategic Interventions for Green Hydrogen Transition Progra­m­me, which will support domestic manufacturing of electrolysers and production of green hydrogen, while Rs 14,660 million has been set aside for pilot projects, Rs 400 million for R&D, and Rs 388 million for other components.

These developments are a big positive for the country’s efforts to decarbonise and achieve its net-zero goals by 2070. It will not only give a fillip to green hydrogen development in the country but also promote the replacement of fossil fuel-based feedstock with green hydrogen and its derivatives in hard-to-abate industries and the transport sector.

As industry experts note, a supportive policy and regulatory regime along with incentives to create demand for green hydrogen and promote the manufacture of electrolysers is essential for the sector to take off. Moreover, the availability of round-the-clock renewable energy is paramount for the functioning of electrolysers.

As next steps, measures such as hydrogen purchase obligation norms and production-linked incentives for electrolysers are needed to further the development of green hydrogen in the country.