The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen 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 move is targeted to help India, one of the world’s biggest greenhouse gas emitters, achieve net-zero carbon emissions by 2070.
To encourage manufacturing of low-cost equipment and technologies, two types of incentives will be given – incentives will be given on electrolyser manufacturing for 5 years and incentive on production of green hydrogen. Green hydrogen hubs will also be developed, said Union Minister Anurag Thakur.
“Cabinet has cleared National Hydrogen Mission. India will be the global hub of green hydrogen,” said Thakur. The Union Cabinet also approved Sunni Dam Hydroelectric project worth Rs 2,614 crore.
Prime Minister Narendra Modi had announced the launch of National Hydrogen Mission during his Independence Day speech on August 15, 2021.
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, an official statement said.
“The Mission will support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production and/or utilisation of Hydrogen will be identified and developed as Green Hydrogen Hubs”, said Anurag Thakur.
The Mission will also facilitate demand creation, production, utilization and export of Green Hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.
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 crores 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