MNRE releases the National Green Hydrogen Mission document

The Ministry of New and Renewable Energy (MNRE) has released a detailed document of its National Green Hydrogen Mission. The overarching objective of the mission is to make India, a global hub for production, usage and export of green hydrogen and its derivatives. It also aims to make India a leader in technology and manufacturing of electrolysers and other enabling technologies for green hydrogen. The mission strategy comprises interventions for first, demand creation by making green hydrogen produced in India competitive for exports and through domestic consumption. Second, addressing supply side constraints through an incentive framework. Third, building an enabling ecosystem to support scaling and development.

The mission will build capabilities to produce at least 5 million metric tonne (MMT) of green hydrogen per annum by 2030, with potential to reach 10 MMT per annum with growth of export markets. The mission is proposed to be implemented in a phased manner, focusing initially on deployment of green hydrogen in sectors that are already using hydrogen, and evolving an ecosystem for research and development (R&D), regulations and pilot projects.

The focus of Phase I (2022-23 to 2025-26) will be on creating demand while enabling adequate supply by increasing the domestic electrolyser manufacturing capacity. In order to ensure Make in India from the inception stage, a bouquet of incentives aimed at indigenisation of the value chain and increasing domestic production and uptake will be developed. 

By the beginning of In the Phase II (2026-27 to 2029-30), green hydrogen costs are expected to become competitive with fossil-fuel based alternatives in the refinery and fertiliser sector allowing for accelerated growth in production. Depending upon the evolution of costs and market demand, the potential for taking up commercial scale green hydrogen based projects in steel, mobility and shipping sectors will be explored. At the same time, it is proposed to undertake pilot projects in other potential sectors like railways, aviation etc. The MNRE will be responsible for overall coordination and implementation of the mission. 

The initial outlay for the mission will be Rs 197.44 billion, including an outlay of Rs 174.9 billion for the SIGHT programme, Rs 14.66 billion for pilot projects, Rs 4 billion for R&D, and Rs 3.88 billion towards other mission components. The MNRE will formulate scheme guidelines for implementation of the respective components.