New Delhi:
The Prime Minister Narendra Modi-led cabinet today approved a Rs 19,744 crore stimulus plan to promote green hydrogen production in the country in a bid to reduce emissions.
Information and Broadcasting Minister Anurag Thakur said the cabinet has approved the National Green Hydrogen Mission, which is expected to attract Rs 8 lakh crore in investments in the green hydrogen chain.
India aims to produce 5 million tonnes of green hydrogen per year over the next five years and the incentives would help drive down costs.
“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Green Hydrogen Mission,” Thakur said while briefing reporters on the cabinet decisions.
Carbon-free hydrogen, which can be used as a fuel in cars and as an energy source in industries such as oil refineries and steel mills, is produced by splitting water. When electricity generated from renewable sources such as the sun is used to split water through electrolysis, green hydrogen is created. Oxygen is a by-product of such a process.
The initial expenditure for the mission will be Rs 19,744 crore which will include an expenditure of Rs 17,490 crore for the SIGHT program, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D and Rs 388 crore for other mission components.
The Ministry of New and Renewable Energy (MNRE) will draw up the guidelines for the implementation of the scheme.
The mission aims to advance the development of a green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per year with an associated renewable energy capacity of approximately 125 GW in the country by 2030.
It envisages an investment of more than Rs 8 lakh crore and the creation of more than 6 lakh jobs by 2030.
It will also result in a cumulative reduction in fossil fuel imports of more than Rs 1 lakh crore and a reduction of nearly 50 MMT in annual greenhouse gas emissions by 2030.
Commenting on the move, ACME Group CEO Rajat Sexaria said it represents a great opportunity for India to become a global export hub of green hydrogen and ammonia.
He further said, “The incentive program makes the green molecule from India competitive. This is necessary for the first few projects and the creation of green hydrogen hubs, which will enable supply chains to be established and scale of production to be increased.” Several countries have already devised subsidy and support programs for green hydrogen. The US recently announced a major clean hydrogen support plan through the Inflation Reduction Act. Germany, the UK and Japan are also supporting clean hydrogen through state support programs, he added.
The mission will have broad benefits — creating export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reducing dependence on imported fossil fuels and raw materials; development of indigenous production capacities; creating employment; and development of advanced technologies, an official statement said.
The mission will facilitate demand creation, production, use and export of green hydrogen. Under the Strategic Interventions for the Transition to Green Hydrogen (SIGHT) program, two different financial incentive mechanisms will be provided under the mission – targeting domestic electrolyser production and green hydrogen production.
The mission will also support pilot projects in emerging end-use sectors and manufacturing pathways. Regions that can support large-scale production and/or use of hydrogen will be identified and developed as green hydrogen hubs, the minister added.
A supporting policy framework will be developed to support the creation of the green hydrogen ecosystem. A robust standards and regulatory framework is also being developed.
Furthermore, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the mission. R&D projects will be targeted, time-bound and appropriately scaled to develop globally competitive technologies. A coordinated skills development program will also be implemented.
All relevant ministries, departments, agencies and institutions of central and state governments will take targeted and coordinated steps to ensure the successful achievement of the mission’s objectives.
The Ministry of New and Renewable Energy will be responsible for the overall coordination and implementation of the mission, he stated.
Vineet Mittal, Chairman of the Avaada Group, said: “It will provide a much-needed boost to encourage the green hydrogen industry. This intervention is even more important as it comes at a time when India holds the G20 Presidency, which clearly shows that India is committed to the global energy transition.” India’s demand for hydrogen is expected to increase fivefold to 28 tons by 2050, along with huge opportunities for exports, he noted.
This intervention will help Indian developers meet the requirement and bolster continued efforts to reach the target of 500 GW renewable energy by 2030 and net zero emissions by 2070, he said.
Shubhranshu Patnaik, Energy, Resources and Industrials Partner, Deloitte India said: “The announcement of incentives under the National Hydrogen Mission Plan, along with the magnitude of India’s probable demand for hydrogen, positions the country as one of the few attractive countries globally for green hydrogen demand and production. It is a crucial policy measure to establish India as a regional production and production hub for green hydrogen.” Gautam Mohanka, general manager of Gautam Solar, said that given that India currently imports more than 80 percent of its oil needs, green hydrogen along with solar and wind could be the answer for the future, with this first release expected to reduce the fossil fuel will restrict imports to more than Rs 1 trillion by 2050.
Green hydrogen production may depend on electricity generated by solar power plants, and in a sense this is a boost to the renewable sector, he added.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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