Centre’s ₹19.7K-Cr scheme to make India global green hydrogen hub

Regions capable of supporting large-scale production of hydrogen will be developed as green hydrogen hubs.

| Updated: 05 January, 2023 10:57 am IST
The mission aims to bring in over ₹8 lakh crores investments and create over 6 lakh jobs by 2030.

Union Cabinet has approved the National Green Hydrogen Mission that will help India in becoming energy independent and decarbonisation of major sectors of the economy.

Under the chairmanship of Prime Minister Narendra Modi, the Cabinet cleared the proposal to launch the mission with an initial outlay of ₹19,744 crores. Out of the total initial budget, ₹17,490 crores will be used for the SIGHT programme, ₹1,466 crores for pilot projects, ₹400 crores for research and development, and ₹388 crores towards other mission components.

The ministry of new and renewable energy (MNRE) will formulate the scheme guidelines for the implementation of its components.

The mission aims to achieve the development of a green hydrogen production capacity of at least 5 MMT (million metric tonnes) per annum with an associated renewable energy capacity addition of about 125 GW by 2030.

Its objectives include achieving more than ₹8 lakh crores in total investments, the creation of more than six lakh jobs, the cumulative reduction in fossil fuel imports by more than ₹1 lakh crores, and abatement of nearly 50 MMT of annual greenhouse gas emissions in the next seven years.

The mission will have wide-ranging benefits like the creation of export opportunities for green hydrogen and its derivatives; decarbonization 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, according to the government.

With the launch of this mission, 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, said the government.

It also targets to bring in over ₹8 lakh crores investments and create over 6 lakh jobs by 2030. 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 under the mission. It 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,” informed the government.

The ministry of new & renewable energy will be responsible for the overall coordination and implementation of the mission. An enabling policy framework will be developed to support the establishment of a green hydrogen ecosystem. A coordinated skill development programme will also be undertaken under the mission.

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