National Green Hydrogen Mission Approved

In January 2023, the Union Cabinet approved the setting up of a National Green Hydrogen Mission. 

The overarching objective of the Mission is to make India the Global Hub for production, usage and export of Green Hydrogen and its derivatives. This will contribute to India’s aim to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

To achieve these objectives, the Mission will build capabilities to produce at least 5 Million Metric Tonne (MMT) of Green Hydrogen per annum by 2030, with a potential to reach 10 MMT per annum with growth of export markets. The Mission will support replacement of fossil fuels and fossil fuel based feedstocks with renewable fuels and feedstocks based on Green Hydrogen. This will include replacement of Hydrogen produced from fossil fuel sources with Green Hydrogen in ammonia production and petroleum refining, blending Green Hydrogen in City Gas Distribution systems, production of steel with Green Hydrogen, and use of Green Hydrogen-derived synthetic fuels (including Green Ammonia, Green Methanol, etc.) to replace fossil fuels in various sectors including mobility, shipping, and aviation. The Mission also aims to make India a leader in technology and manufacturing of electrolysers and other enabling technologies for Green Hydrogen.

Considering the nascent status of the sector and the rapidly evolving profile of the industry, 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 R&D, regulations and pilot projects. The later phase of the Mission will build on these foundational activities and undertake Green Hydrogen initiatives in new sectors of the economy. 

Main features of the Mission:

• The initial outlay for the Mission will be Rs.19,744 crore, including an outlay of Rs.17,490 crore for the SIGHT programme, Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crore towards other Mission components. MNRE will formulate the scheme guidelines for implementation of the respective components. 
• The Mission will result in the following likely outcomes by 2030: 
• Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) 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 wide ranging benefits:
• Creation of export opportunities for Green Hydrogen and its derivatives; 
• Decarbonisation of industrial, mobility and energy sectors; 
• Reduction in dependence on imported fossil fuels and feedstock; 
• Development of indigenous manufacturing capabilities; 
• Creation of employment opportunities; and 
• Development of cutting-edge technologies.
• India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW. 
• The targets by 2030 are likely to bring in over Rs. 8 lakh crore investments and create over 6 lakh jobs. 
• Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.