The Union Cabinet approved National Green Hydrogen Mission on January 4, 2023. The mission has an initial budget outlay for Rs.197,440 million. 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 million metric tonnes (MMT) annual green hydrogen production capacity with an associated renewable energy capacity addition of about 125 GW in the country by 2030. Leading industry experts share their opinion on this announcement…
Srivatsan Iyer, Global CEO, Hero Future Energies
Battery energy storage systems and green hydrogen are the natural progression in India’s net zero and decarbonization journey, and consequently, the next growth opportunity. The same is reflected in recent announcements from the Government of India (GoI) and major industry leaders in the renewable energy space. The GoI, approving the much-awaited National Green Hydrogen Mission, with an outlay of Rs 197,440 million will be a critical enabler to make India a global leader in green hydrogen production as well as export.
While the finer details of the SIGHT program are yet to be released, we are hopeful that the initiative shown by the GoI through this move is reflected on the ground through quick and effective implementation of a policy framework to support the fledgling green hydrogen ecosystem and transform India into a global green hydrogen hub.
Girishkumar Kadam, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA Limited
The notification of the National Green Hydrogen Mission for green hydrogen by the GoI on January 4, 2023 is a positive step, which reinforces the GoI’s strong policy push towards renewable energy and attaining the long-term path of net zero energy. While the investment prospects are strong to meet 5 MMT of green hydrogen requirements as per the Mission by 2030, the cost competitiveness of green hydrogen would remain contingent upon the extent of the reduction in capital cost of electrolyser and competitiveness of renewable energy procurement. Further, round-the-clock procurement of renewables at cost-competitive rate remains extremely critical for an improvement in the utilisation of electrolyser. On the policy front, key measures pertaining to the green hydrogen purchase obligation norms, as well as the timely implementation of the proposed production-linked incentive scheme to incentivize/promote the domestic manufacturing of electrolysers will be critical.
Arun Kumar, Partner – Energy & Infrastructure, Induslaw
The Cabinet’s approval of the National Green Hydrogen Mission and the financial outlay and incentives for the SIGHT program is an expected and welcome next step in India’s plans for energy transition, decarbonisation, and to become a global hub for production of green hydrogen. The financial support from government will generate increased interest and investment from the private sector and help in making this presently expensive sector more viable. Having said that, the industry will now look forward to the introduction of a robust and enabling regulatory framework for the green hydrogen sector.
Gautam Mohanka, Managing Director, Gautam Solar Private Limited
We genuinely welcome the GoI’s much-awaited initial outlay for National Green Hydrogen Mission. India’s dependency on fossil fuels has been a matter of concern, given that our power consumption demands are likely to soar massively over the next twenty years.
The initial outlay of Rs 197,440 million will boost the production of green hydrogen in India and will eventually help the industrial, commercial, and residential sectors alike. Given that we currently import more than 80 per cent of our national oil requirements, green hydrogen along with solar and wind could be the answer to the future, with this initial outlay being projected to curtail fossil fuel imports of over Rs. 1 trillion by the year 2050. Of these Rs. 197,440 million, Rs. 174,900 million is allocated for the SIGHT programme, which will not only provide a growth opportunity to the domestic manufacturing of electrolysers but also provide a boost to the target of production of 5 MMT of green hydrogen by 2030 and making India a green hydrogen hub. This is our international commitment as well for becoming a zero-emission nation. Hydrogen and ammonia will help to further decrease the use of fossil fuels and is wished to be future fuels and will provide clean air to the future generation.
Green hydrogen and green ammonia is the future of our country. The production of green hydrogen can rely on electricity generated by solar plants, and in a way, this is a boost to the renewable sector. Gautam Solar looks forward to empowering local players and businesses in using solar power for green hydrogen production and usage. We hope that the government will eventually make it mandatory for select industries to use green hydrogen and solar power to reduce the reliance on fossil fuels. We also see this as a prospect for the indigenous production of power components, panels, and parts.
We have previously applauded Prime Minister Narendra Modi’s commitment at the COP27 summit, and we believe that this initial outlay for National Green Hydrogen Mission will propel the renewable energy sector in the right direction.
Shubhranshu Patnaik, Energy, Resources and Industrials Partner, Deloitte India
The announcement of incentives under the National Hydrogen Mission Plan, along with the scale of likely hydrogen demand (25 MMT by 2030) in the country, positions India as amongst the top 3 attractive nations globally for green hydrogen demand and production. It is a crucial policy measure in establishing India as a leader in manufacturing and production of green hydrogen. What will be required alongside this ambitious mission is to create adequate demand by transiting hard-to-abate user industries through incentives and obligations towards green hydrogen.
Deepto Roy, Partner, Shardul Amarchand Mangaldas & Co.
The successful fashioning of green hydrogen infrastructure is key for India’s move towards net zero emissions, since green hydrogen has the potential to replace carbon heavy fuel in several key sectors. The outlay on the National Hydrogen Mission would also hopefully provide impetus to continued addition of renewable generation capacity which has been seeing some tailwinds in recent times.