Cabinet approves ₹19,744 cr National Green Hydrogen Mission

The Union Cabinet led by Prime Minister Narendra Modi has approved the National Green Hydrogen Mission with an initial outlay of ₹19,744 crore.

This includes an outlay of ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) programme, ₹1,466 crore for pilot projects, ₹400 crore for R&D, and ₹388 crore towards other Mission components.

The Mission will result in the development of a green hydrogen production capacity of at least 5 MMT (million metric tonne) per annum with an associated renewable energy capacity addition of about 125 gigawatt in the country by 2030.

The scheme is expected to attract over ₹8 lakh crore in total investments, the Cabinet note says, adding it will create 6 lakh jobs.

The National Green Hydrogen Mission will help in the reduction of fossil fuel imports of over ₹1 lakh crore and prevent 50 MMT of annual greenhouse gas emissions by 2030.

Green hydrogen costs in India could potentially fall by half to as low as ₹160-170 per kg by 2030, bringing parity with grey hydrogen and other fossil fuels, according to a study by KPMG. Current green hydrogen production costs range anywhere between ₹320 and ₹330 per kilogram in India.

On February 17, 2022, India launched the Green Hydrogen Policy aiming at boosting the domestic production of green hydrogen to 5 MTPA by 2030, half of the EU's target of 10 MTPA, making India an export hub for the energy source.

Big industrial houses like Reliance Industries, Adani Group, L&T-Renew Power and several PSUs like NTPC, IOC, and HPCL are planning big investments in the sector. The Adani group plans to invest $50 billion in green hydrogen manufacturing, along with the French joint venture partner Total.

The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for the implementation of the National Green Hydrogen Mission.

The scheme aims to decarbonise industrial, mobility and energy sectors and reduce dependence on imported fossil fuels and feedstock.

Under the Strategic Interventions for Green Hydrogen Transition Programme (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 utilisation of hydrogen will be identified and developed as green hydrogen hubs, the government says.

"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," the Centre says.

A coordinated skill development programme will also be undertaken under the Mission.