With an aim to make India a Global Hub for the production, utilization, and export of Green Hydrogen and its derivatives, Hon’ble Prime Minister Shri Narendra Modi approved the Green Hydrogen Mission on 4th January 2023. Cabinet aims for India to become energy independent through Green Hydrogen Mission. Hydrogen generated by renewable energy or from low-carbon emissions is known as Green Hydrogen. Cabinet also approved a budget of INR 19,744 crores for the mission.
This helps to develop research, and hydrogen hubs, manufacture electrolyzers, and reduce fossil fuel imports. It also aims at attracting investments and creating job opportunities. Officials at Ministry of New and Renewable Energy (MNRE) said, “The four pilot projects for use of green hydrogen are for low carbon steel, mobility, shipping, and decentralized energy and energy storage solutions.”
The objective of the mission is to develop a production capacity of at least 5 MMT (Million Metric Tonnes) per annum along with an associated renewable energy capacity addition of 125 GW by 2030. This mission seems to attract global investors that are likely to help bring down the cost of input materials like electrolyzers further helping India to become energy independent through the Green Hydrogen Mission. National Thermal Power Corporation Limited commissioned the first green hydrogen blending project in India on 3rd January 2023 being implemented with Gujarat Gas Limited (GGL) in Surat.
One of the key tenants of Green Hydrogen Mission is SIGHT which stands for Strategic Interventions for Green Hydrogen Transition. It received an allocation of INR 17,490 crore and will help India to become energy independent through Green Hydrogen Mission. Under SIGHT, there will be two financial incentive mechanisms, to deal with green hydrogen production and for domestic manufacturing of electrolyzers.
According to the policy drafted by the Ministry of Power, Ammonia or green hydrogen manufacturers can set up green energy projects or procure the same from energy exchanges. Under the policy, several waivers include transmission connectivity & charges, and ease of getting access.