The initial outlay for the Mission will be Rs 19,744 crore
The Union Cabinet approved the National Green Hydrogen Mission January 4, 2023, with the goal of developing a green hydrogen production capacity of at least five million metric tonnes (mmt) and an associated renewable energy capacity addition of about 125 gigawatts (GW) by 2030.
The Mission aims to abate nearly 50 mmt of annual greenhouse gas emissions by 2030 by facilitating demand creation, production and utilisation of green hydrogen in various sectors.
Green hydrogen can potentially reduce 3.6 gigatonnes of carbon dioxide (CO2) emissions by 2050, according to a NITI Aayog report. Prime Minister Narendra Modi had launched the National Hydrogen Energy Mission of India August 15, 2021.
The Mission also plans to create a coordinated skill development programme. This will lead to the creation of 0.6 million job opportunities, an official statement by the Union Ministry of New and Renewable Energy indicated.
Most importantly, the Mission aims to increase the export of green hydrogen and simultaneously reduce fossil fuel imports of over Rs 1 lakh crore. Over Rs 8 lakh crore in investments is expected for infrastructure development.
The first disbursement for the Mission will be Rs 19,744 crore, including an outlay of Rs 17,490 crore under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.
The programme’s incentive is to target the domestic manufacturing of electrolysers along with the production of green hydrogen. Electrolysis powered by renewable electricity is used to produce green hydrogen. Towards this, 60-100 GW of electrolyser capacity is planned.
“Incentives will be given on electrolyser manufacturing for five years and on production of green hydrogen,” Union Minister Anurag Thakur said January 4, CNBC reported.
“Nearly Rs 13,000 crore of the Rs 17,490 crore will be given as incentives for the production of green hydrogen and the remaining amount (Rs 4,490 crore) will be for manufacturing of electrolysers,” Thakur said at a press conference.
Gautam Mohanka, managing director, Gautam Solar Pvt Ltd hailed the move. He said in a press statement, “India’s dependency on fossil fuels has been a matter of concern, given that our power consumption demands are likely to soar massively over the next twenty years.”
“Given that we currently import more than 80 per cent of our national oil requirements, green hydrogen along with solar and wind could be the answer to the future, with this initial outlay being projected to curtail fossil fuel imports of over Rs 1 trillion by the year 2050,” Mohanka said.
“Green hydrogen and green ammonia are the future of our country. The production of green hydrogen can rely on electricity generated by solar plants, and in a way, this is a boost to the renewable sector. We also see this as a prospect for the indigenous production of power components, panels, and parts,” Mohanka said.
Further allocations of the Mission include Rs 1,466 crore for pilot projects in end-user sectors such as for manufacturing ammonia and fertilisers.
A public-private partnership framework for research and development called the Strategic Hydrogen Innovation Partnership (SHIP) will be facilitated under the Mission and has been earmarked Rs 400 crore.
“R&D projects will be goal-oriented, time-bound, and suitably scaled up to develop globally competitive technologies,” said an official statement.
“Regions capable of supporting large scale production and/or utilisation of hydrogen will be identified and developed as green hydrogen hubs,” the statement added.
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