The Union Cabinet  Approves The National Green Hydrogen Mission

The Union Cabinet Approves The National Green Hydrogen Mission

January 5, 2023 - 7:18 am

 ₹19,744-Crore Incentive Plan for Green Hydrogen Industry

The Union Cabinet chaired by PM Modi approved the National Green Hydrogen Mission with an outlay of Rs.19,744 crore. This comes in a move aimed at making the country a global hub to produce, utilise and export green hydrogen and its derivatives. This development will help India achieve net-zero emissions by 2070 and become one of the largest exporters of green hydrogen while taking a big leap towards decarbonisation of major sectors of the economy. On August 15, 2021, the mission was launched with an aim to reduce the dependency of fossil fuels and increase the use of renewable energy. 

What is Green Hydrogen (H2)?

If every input used to make the hydrogen is green, the hydrogen is said to be "green." Green Hydrogen (H2) does not produce greenhouse gas emissions like carbon dioxide (CO2) when combusted. Hydrogen when combusted produces steam and heat. Green hydrogen is the name given to hydrogen gas produced with clean, renewable energy sources like solar or wind energy, which emit no greenhouse gases. Water is electrolyzed to create green hydrogen in this method. This process is based on the electrolysis chemical reaction, which generates hydrogen, a fuel that is versatile, light, and highly reactive. Using an electrical current, this method separates the hydrogen from the oxygen in water. Therefore, if this electricity is generated through renewable resources, we won't be adding carbon dioxide to the atmosphere while producing energy.

What is a SIGHT Programme?

The government has allotted Rs.17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, Rs.1,466 crore for forthcoming pilot projects, Rs.400 crore for R&D, and Rs.388 crore for other mission components out of the overall investment for the mission. Under the SIGHT mission, two different financial incentive mechanisms—targeting domestic electrolyser manufacturing and green hydrogen production—will be made available.The goal is to advance the growth of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) annually with an accompanying addition of roughly 125 GW of renewable energy capacity in the nation by 2030. The Mission will be implemented and coordinated overall by the Ministry of New and Renewable Energy.

Benefits of Green Hydrogen

The mission will have many benefits, according to an official statement, including opening up export markets for green hydrogen and its derivatives, decarbonizing the industrial, mobility, and energy sectors, reducing reliance on imported fossil fuels and feedstock, enhancing domestic manufacturing capabilities, creating job opportunities, and advancing cutting-edge technologies. Additionally, the mission will aid in developing end-use industries and supply chains using trial projects. Green Hydrogen Hubs will be created in areas that can support the large-scale production and/or use of hydrogen.

The Way Forward

An enabling policy framework will be developed to aid in the growth of the green hydrogen ecosystem. A solid framework for standards and laws will also be developed. A public-private collaboration organisation for research and development, the Strategic Hydrogen Innovation Cooperation (SHIP), will also get assistance from the Mission. The goals, timelines, and scope of R&D projects must be suitable for developing internationally competitive technologies. A coordinated skill-development programme will also be put into action. To ensure the Mission's goals are successfully attained, all relevant ministries, departments, agencies, and institutions of the federal and state governments will take targeted and coordinated action.