Union Cabinet green lights National Green Hydrogen Mission

The Union Cabinet has approved National Green Hydrogen Mission on January 4, 2023.  The mission has an initial budget outlay for Rs.197,440 million. This comprises of an outlay of Rs.174,990 million for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) programme, Rs.14,660 million for pilot projects, Rs.400 million for R&D, and Rs. 388 million towards other components.  The Ministry of New and Renewable Energy has been given the responsibility of  overall coordination and implementation of the mission and also formulation of the scheme guidelines.

The mission proposes the development of at least 5 MMT annual green hydrogen production capacity with an associated renewable energy capacity addition of about 125 GW in the country by 2030. Further, it is expected that the mission will be successful in facilitating over Rs 8 trillion in total investments and creating 600,000 jobs. Moreover, it will lead to cumulative reduction in fossil fuel imports to the tune of Rs 1 trillion and 50 MMT of annual greenhouse gas emissions.

This mission will facilitate demand creation, production, utilisation and export of green hydrogen through its various components.  To promote green hydrogen development in the country, two financial incentives are being planned under the SIGHT programme for domestic manufacturing of electrolysers and production of green hydrogen. Further, support will be provided for pilot projects  and green hydrogen hubs will be developed.

Moreover, an enabling policy framework will be developed alongwith a robust standards and regulations framework. To promote R&D in this space, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) is also planned to be facilitated under the mission.