The government has unveiled pilot projects guidelines focused on utilisation of green hydrogen in the transport sector, as part of the National Green Hydrogen Mission. The steering committee, jointly chaired by the secretaries of the Ministry of Road Transport and Highways (MoRTH) and the Ministry of New and Renewable Energy, will oversee the comprehensive monitoring of the scheme and the projects carried out under it. The execution of these pilot projects will be carried out by the MoRTH and the designated scheme implementing agencies appointed under the scheme.
The programme comprises of two parts. As a part of component A, it aims to promote the advancement of technologies for utilising green hydrogen as a fuel in buses, trucks, and four-wheelers, employing either fuel cell-based propulsion technology or internal combustion engine-based propulsion technology. Component B entails providing assistance for the establishment of infrastructure, such as the development of hydrogen refueling stations. The program also aims to encourage new applications of hydrogen to decrease carbon emissions in the transportation industry. This includes exploring innovative approaches like mixing methanol or ethanol using green hydrogen, along with incorporating other synthetic fuels derived from green hydrogen into automotive fuels. The programme will allocate a total budget of Rs 4.96 billion until the fiscal year 2025-26.
The operational problems and gaps in the existing technological readiness, legislation, implementation techniques, infrastructure, and supply chains will be identified with the help of these pilot projects. These will be important inputs for the commercialisation and expansion of green hydrogen in the transportation industry in the future. The implementation of green hydrogen in the transportation industry through the proposed pilot projects would result in the construction of the required infrastructure, such as distribution and refueling centers, creating a green hydrogen ecosystem in the industry. It is anticipated that use of green hydrogen in the transportation industry will rise as the cost of producing it decreases over time. Additionally, intercity bus and truck operators, such as state transport undertakings, will benefit from the lessons learned from the pilot projects as they acquire expertise in deploying and using hydrogen fuel cell vehicles and refueling technology. The programme will offer financial support to bridge the viability gap resulting from the higher initial capital costs associated with hydrogen-powered vehicles and the infrastructure for hydrogen refueling stations. However, expenses related to hydrogen production, land, and similar items will not be covered under this scheme. The central financial assistance will be distributed in three phases: 20 per cent upon the issuance of the letter of award, 70 per cent based on project milestones, and the remaining 10 per cent upon completion.
