National Green Hydrogen Mission, aims to produce 5 million tonnes of green hydrogen by 2030, approved by the Union Cabinet

The National Green Hydrogen Mission, which aims to produce 5 million tonnes of green hydrogen annually by 2030, received approval from the Union Cabinet on Wednesday with an allocation of 19,744 crore.

Union Cabinet approves National Green Hydrogen Mission with an allocation of Rs 19,744 crore

The Center will offer incentives of Rs. 17,490 crore for the manufacture of electrolyzers and green hydrogen over a five-year period from the entire allotted amount.

“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.

Government anticipates that the National Green Hydrogen Mission will bring in investments of Rs 8 trillion and generate 6 lakh jobs by 2030

On July 1, 2021, it was first revealed the government's intention to launch a green hydrogen programme. On October 24, 2022, it was further revealed that the national green hydrogen mission will receive funding in the range of 20,000 crore.

The goal is expected to bring in investments totaling $8 trillion and generate 6 lakh employment by 2030, according to the government. Anurag Thakur, the union minister for information and broadcasting, told reporters following the cabinet meeting that the mission would also cut India's imports of fossil fuels by $1 trillion and roughly 50 million tonnes of yearly greenhouse gas emissions.

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Mission aims at making India a hub for both manufacturing and exports of green hydrogen

According to the statement, the mission will have numerous advantages in addition to opening up export markets for green hydrogen and its derivatives, including the decarbonization of the industrial, mobility, and energy sectors, a reduction in reliance on foreign imports for feedstock and fossil fuels, the development of homegrown manufacturing capabilities, the creation of job opportunities, and the advancement of cutting-edge technologies.

The project aims to establish India as a hub for green hydrogen production and export. The global hub for green hydrogen will be India. It will aid in achieving both the national goal of "Atmanirbhar Bharat" (self-reliance India) and the country's ambition of becoming energy independent by 2047, according to Thakur.

Mission anticipates to strive towards uniting green hydrogen producers and consumers

The goal of the project is to unite green hydrogen producers and consumers on a single platform. According to the statement, "the mission will promote demand generation, production, consumption, and export of green hydrogen."

The mission will assist pilot projects in developing end-use sectors and production pathways in addition to the "Strategic Interventions for Green Hydrogen Transition" (SIGHT) initiative, which provides financial incentives for domestic production of electrolyzers and green hydrogen.

Green hydrogen hubs will be created in areas that can support widespread hydrogen generation and use

According to the statement, a strong standards and regulatory framework will also be created, together with an enabling policy framework to assist the development of a green hydrogen ecosystem. Additionally, the mission will assist the Strategic Hydrogen Innovation Partnership (SHIP), a platform for public-private R&D partnerships.

The mission will also implement a coordinated skill development programme.

After Prime Minister Narendra Modi declared that he would launch a green hydrogen mission on August 15, 2021, the draught national green hydrogen policy was published in February of this year.

Long-awaited permission for the green hydrogen mission welcomed by Industry

The approval of 19,744 Cr for the National Green Hydrogen Mission by the cabinet is the ideal New Year's gift for the industry, according to Vineet Mittal, chairman of the Avaada Group. It will provide the green hydrogen sector the much-needed boost it needs. Given that India is currently holding the G20 presidency, this intervention is even more crucial as it demonstrates India's commitment to driving the global energy transformation.

He claimed that by 2050, the demand for green hydrogen in India is expected to increase five-fold to 28 million tonne, with enormous prospects for exports. In order to create the green hydrogen fuel of the future and make India a leader in the green energy sector, the government, business entities, and innovators will cooperate more, according to him.

Noting that the cabinet's approval presents India with a fantastic opportunity to establish itself as a leading exporter of green hydrogen and ammonia, The incentive programme makes the green chemical from India competitive, according to Rajat Seksaria, CEO of ACME Group. This is necessary for the first few projects and to build green hydrogen hubs, which will enable the establishment of supply chains and a rise in production scale. A number of countries have already developed green hydrogen support and subsidy schemes.

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