Cabinet approves ₹19,744 cr National Green Hydrogen Mission
Out of the total allocation, the Centre would provide incentives worth ₹17,490 crore for production of both electrolyzers and green hydrogen for a period of five years
PremiumNew Delhi: The Union Cabinet on Wednesday approved the National Green Hydrogen Mission with an allocation of ₹19,744 crore, aimed at producing 5 million tonne of green hydrogen annually by 2030.
Out of the total allocation, the Centre would provide incentives worth ₹17,490 crore for production of both electrolyzers and green hydrogen for a period of five years.
“The initial outlay for the Mission will be Rs.19,744 crore, including an outlay of Rs.17,490 crore for the SIGHT programme, ₹1,466 crore for pilot projects, ₹400 crore for R&D, and ₹388 crore towards other Mission components," said an official statement, adding that the ministry of new and renewable energy (MNRE) will formulate the scheme guidelines for implementation of the respective components.
Mint had first reported about the government’s plan to come up with a green hydrogen programme on July 1, 2021 and on October 24, 2022, Mint also reported that the national green hydrogen mission would be allocated around ₹20,000 crore.
The government expects the mission to attract investments worth ₹8 trillion by 2030 and create six lakh jobs. Addressing reporters after the cabinet meeting, union minister for information and broadcasting Anurag Thakur said that the mission would also result in reduction in greenhouse gas emission by nearly 50 million tonne annually and save India ₹1 trillion in its fossil fuel imports.
The statement said that the mission will have wide ranging benefits apart from creation of export opportunities for green hydrogen and its derivatives, such as 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.
The mission is aimed at making India a hub for both manufacturing and exports of green hydrogen. “India will be a gobal hub for green hydrogen. It will help the country achieve its target of becoming energy independent by 2047 and also achieve the vision of ‘Atmanirbhar Bharat’ (self-reliant India)," Thakur said.
The mission is expected to work towards bringing the producers and consumers of green hydrogen on the same platform. “The mission will facilitate demand creation, production, utilization and export of green hydrogen," said the statement.
Apart from the ‘Strategic Interventions for Green Hydrogen Transition’ (SIGHT) programme under which financial incentives would be provided for domestic manufacturing of electrolyzers and green hydrogen, the mission will also support pilot projects in emerging end-use sectors and production pathways.
Regions capable of supporting large scale production and utilization 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, the statement said, adding that 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.
Further, a coordinated skill development programme will be undertaken under the mission.
The draft national green hydrogen policy was released in February this year after Prime Minister Narendra Modi announced to come up with a green hydrogen mission on 15 August, 2021.
Industry has appreciated the much awaited approval for the green hydrogen mission.
Vineet Mittal, chairman, Avaada Group said: “Approving ₹19,744 Cr for the National Green Hydrogen Mission by cabinet is the perfect New Year Gift to the industry. It will provide a much-needed boost to encourage the green hydrogen industry. This intervention is even more significant because it comes at a time when India has the G20 presidency, clearly showcasing India’s commitment to lead the global energy transition."
He said that green hydrogen demand in India is anticipated to see a five-fold jump to 28 million tonne by 2050, along with tremendous opportunities that exist for exports. The impetus will translate into increased cooperation between government, private players and innovators to make the green hydrogen fuel of the future and India a leader in the green energy space, he said.
Noting that the cabinet approval offers a great opportunity for India to become a global export hub of green hydrogen and ammonia, Rajat Seksaria, CEO, ACME Group said: “The incentive program makes the green molecule from India competitive. This is required for the initial few projects and create green hydrogen hubs, which will allow supply chains to be established and scale of production to increase. Several nations have already come up with green hydrogen subsidy and support programs."
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