National green hydrogen mission takes centre stage in sustainable energy production

India’s National Green Hydrogen Mission aims to reduce fossil fuel dependence through green hydrogen production, leveraging renewable sources and innovative incentives for sustainable energy, economic growth, and emissions reduction.

MNRE and Power Ministry have unveiled the ambitious ‘National Green Hydrogen Mission’, ushering India into a new era of sustainable energy production and reducing fossil fuel dependence. R. K. Singh, the Union Minister for New and Renewable Energy and Power, emphasised that green hydrogen, a clean and renewable energy source, can be harnessed through water electrolysis with renewable electricity and biomass via thermochemical and biochemical pathways.

Currently, the country’s green hydrogen production remains limited, primarily due to the cost-intensive nature of electrolysers and renewable energy inputs. To address this, the National Green Hydrogen Mission aims to drive down costs across the production chain and establish India as a global leader in green hydrogen production, utilisation, and export.

One of the pivotal points in this endeavour was the approval by the Union Cabinet on January 4, 2023, allocating ₹19,744 crore for the implementation of the National Green Hydrogen Mission. The overarching objective of the mission is to cultivate a conducive ecosystem for the production, adoption, and export of green hydrogen and its derivatives.

Key components of the mission include:

• Demand Stimulation: Facilitating both domestic utilisation and exports
• Strategic Interventions for Green Hydrogen Transition (SIGHT) Program: With a financial outlay of ₹17,490 crore, this programme provides incentives for domestic electrolyser manufacturing and green hydrogen production.
• Pilot Projects: Exploring green hydrogen’s viability in sectors like steel production, transportation, shipping, decentralised energy applications, biomass-based hydrogen production, and storage
• Green Hydrogen Hubs: Development of dedicated hubs to streamline production and distribution
• Infrastructure Support: Building essential infrastructure for efficient green hydrogen utilisation
• Regulatory Framework: Establishing robust regulations and standards
• Research & Development and Skill Development Programmes: Fostering innovation and preparing a skilled workforce
• Public Awareness: Initiatives to raise public awareness about green hydrogen.

Crucially, the mission does not extend incentives for green hydrogen consumption or its derivatives. However, the strategic initiatives are projected to catalyse significant outcomes. The mission targets a remarkable 5 million metric tonnes (MMT) of annual green hydrogen production capacity by 2030, contributing substantially to the reduction of fossil fuel imports. This reduction is expected to save a cumulative ₹1 lakh crore in fossil fuel imports by 2030, drawing in investments exceeding ₹8 lakh crore and generating around 6 lakh job opportunities. Moreover, the anticipated production and utilisation of green hydrogen are forecast to curtail nearly 50 MMT per year of CO2 emissions.

The mission’s core focus is to refine and scale up green hydrogen production technology to make it economically viable and universally accessible. Notably, the Indian government is undertaking further measures to propel India into a global green hydrogen hub:

Inter-state Transmission Charges Waiver: Producers of green hydrogen and green ammonia projects commissioned before December 31, 2030, are granted a 25-year exemption from inter-state transmission charges.

Renewable Energy Open Access Rules: The Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022, enable the supply of renewable energy through open access for green hydrogen production.

These measures are critical to realising India’s potential as a prominent player in the global green hydrogen landscape. With the National Green Hydrogen Mission in motion, India takes a giant leap towards a cleaner and more sustainable energy future.