On January 4, 2023, the Government of India approved the National Green Hydrogen Mission. Under the mission, Rs 19,744 crore will be spent. Most of this money will be used as incentives for green hydrogen production and electrolyser manufacturing.
- It creates an interactive and engaging learning atmosphere.
- It links teachers and students, regardless of their location.
- It enables instant sharing and collaboration of knowledge.
- Outdoor activities provide many health benefits.
The government has also set aside Rs 1,466 crore for pilot projects. For research and development (R&D), they have allocated Rs 400 crore. The remaining Rs 388 crore will be spent on other components of the mission.
Details Of National Green Hydrogen Mission
Components
- The following components have been announced as part of the Mission:
- Facilitating demand creation through exports and domestic utilization;
- Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which includes incentives for manufacturing of electrolysers and production of green hydrogen;
- Pilot Projects for steel, mobility, shipping etc.;
- Development of Green Hydrogen Hubs;
- Support for infrastructure development;
- Establishing a robust framework of regulations and standards;
- Research & Development programme;
- Skill development programme; and
- Public awareness and outreach programme.
Green Hydrogen Hubs
- The Mission will identify and develop regions capable of supporting large scale production and/or utilization of Hydrogen as Green Hydrogen Hubs.
- Development of necessary infrastructure for such hubs will be supported under the Mission.
- It is planned to set up at least two such Green Hydrogen hubs in the initial phase.
- Outlay of ₹ 400 crore up to 2025-26 for Hubs and other projects.
Key Outcomes
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
Policy Framework
- A supportive policy framework will be crafted to nurture the Green Hydrogen ecosystem.
- Comprehensive standards and regulations will be established.
- The Mission will foster a public-private partnership for research and development (R&D) in the shape of the Strategic Hydrogen Innovation Partnership (SHIP).
- R&D projects will be goal-oriented, time-limited, and appropriately scaled to foster globally competitive technologies.
- A coordinated skill development programme will be initiated under the Mission’s umbrella.
- All relevant Ministries, Departments, agencies, and state and central government institutions will take targeted and coordinated steps to fulfill the Mission’s objectives.
- The Ministry of New & Renewable Energy will oversee the overall coordination and implementation of the Mission.
Benefits
- The National Green Hydrogen Mission aims to create export opportunities for Green Hydrogen and its derivatives.
- It contributes towards the decarbonization of industrial, mobility, and energy sectors.
- This initiative will reduce dependence on imported fossil fuels and feedstock.
- It will develop indigenous manufacturing capabilities and create employment opportunities.
- The Mission will advance the development of cutting-edge technologies.
- By 2030, India’s Green Hydrogen production capacity is projected to reach 5 MMT per annum with an associated renewable energy capacity addition of about 125 GW.
- This goal will possibly attract over Rs. 8 lakh crore investments and generate over 6 lakh jobs by 2030.
- The plan could potentially avert nearly 50 MMT per annum of CO2 emissions by 2030.
- The Mission will encourage the creation, production, utilization, and export of Green Hydrogen.
- Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), financial incentives will be provided for the domestic manufacturing of electrolysers and the production of Green Hydrogen.
- The programme will support pilot projects in emerging end-use sectors and production pathways.
- Regions with the potential to support large scale production and/or utilisation of Hydrogen will be identified and developed as Green Hydrogen Hubs.
India’s Green Hydrogen Standard
In August 2023, the Ministry of New and Renewable Energy (MNRE) introduced the Green Hydrogen Standard for India. In simple terms, these standards provide a clear definition of what qualifies as ‘green’ in the context of green hydrogen.
It notified:
- The permissible level of carbon emissions during the production of green hydrogen from renewable sources encompasses both electrolysis and biomass-based pathways.
- Green hydrogen is defined as hydrogen with a well-to-gate emission, encompassing processes such as water treatment, water purification, and hydrogen drying and compression, that does not exceed 2 kg CO2 equivalent per kg of hydrogen produced.
- The Bureau of Energy Efficiency, under the Ministry of Power, will serve as the central authority for overseeing projects related to the production of green hydrogen.
Why Does It Matter?
- Industry experts consider it a crucial measure to eliminate any ambiguity surrounding the criteria for classifying green hydrogen and provide clarity regarding the acceptable footprint of hydrogen projects.
- India’s pioneering efforts in establishing a green hydrogen standard have firmly established its position as a leading global frontrunner in this field.
Steps For India To Become A Global Leader In Green Hydrogen Production
- India’s path to global leadership in green hydrogen production begins by establishing a domestic market.
- The current annual use of hydrogen in India, mainly for fertilizer, ammonia, and petroleum refining, stands at 6 million metric tons.
- India can generate an initial demand for green hydrogen by blending small percentages (5% to 10%) of it with gray hydrogen. Grey hydrogen is produced through steam reforming.
- This approach forms the first necessary step for India and could stimulate a strong demand for green hydrogen.
- As the next step, India can incrementally raise the blending percentages. This strategy will also give a clear direction for green hydrogen investments.
- Without these steps, meeting ambitious targets could be challenging for India.
- The use of existing technology and scales can create initial demand through small blending.
- Gradually increasing domestic demand is plausible as technology and research & development progress.
- A continuous increase in blending percentages will help India develop a robust manufacturing infrastructure for green hydrogen.
- This gradual approach gives much-needed assurance and confidence to stakeholders.
Energy Storage And The Green Hydrogen Economy In India
- Energy storage is crucial for developing India’s green hydrogen economy.
- Hydrogen is part of the energy storage system.
- Electrochemical storage or batteries play a significant role in this economy.
- This is because green hydrogen is primarily produced using electrolyzers.
- Building large storage facilities for hydrogen is necessary for India.
- This storage will ensure hydrogen usage throughout the day.
- However, creating these facilities will significantly increase costs.
- If India utilizes wind or solar energy with storage technologies, electrolyzers could run on clean energy for 60-70% of the day.
- This would improve electrolyzer utilization and lower the cost of green hydrogen.
India Should Support Research Projects
- Green hydrogen production is pricier than traditional methods.
- The cost-effectiveness of green hydrogen can be improved in India.
- Support is needed for research projects that aim to enhance electrolyzer design.
- India should join the global effort for innovation in this sector.