India has approved the National Green Hydrogen Mission, with an initial budget of Rs.19,744 crore ($2.3 billion). It aims to make India a Global Hub for producing, utilising and exporting Green Hydrogen and its derivatives. The Mission will help India become energy independent and decarbonise significant sectors of the economy.
The Mission will result in the following likely outcomes by 2030:
- Development of 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 in the country
- Over Rs. Eight lakh crore in total investments
- Creation of over Six lakh jobs
- Cumulative reduction in fossil fuel imports over Rs. One lakh crore
- Abatement of nearly 50 MMT of annual greenhouse gas emissions
The Mission will have a wide range of benefits, including the creation of export opportunities for Green Hydrogen and its derivatives, the decarbonisation of the industrial, mobility, and energy sectors, the reduction of reliance on imported fossil fuels and feedstock, the development of indigenous manufacturing capabilities, the creation of job opportunities, and the development of cutting-edge technologies.
India’s Green Hydrogen production capacity is expected to reach at least 5 MMT per year, with a 125 GW increase in renewable energy capacity. By 2030, the targets are expected to attract over Rs. 8 lakh crore investments and create over 6 lakh jobs. As a result, by 2030, nearly 50 MMT of CO2 emissions are expected to be avoided.
The Mission will make it easier to create demand for, produce, use, and export Green Hydrogen. The Mission will provide two distinct financial incentive mechanisms aimed at the domestic manufacturing of electrolysers and the production of Green Hydrogen under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT). In addition, the Mission will fund pilot projects in emerging end-use sectors and production pathways. Green Hydrogen Hubs will be identified and developed in regions capable of supporting large-scale hydrogen production and/or utilisation.
An enabling policy framework will be developed to support the establishment of a Green Hydrogen ecosystem. A solid Standards and Regulations framework will also be created. Furthermore, the Mission will facilitate a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP); R&D projects will be goal-oriented, time-bound, and appropriately scaled up to develop globally competitive technologies. The Mission will also implement a coordinated skill development programme.