National Green Hydrogen Mission

National Green Hydrogen Mission Background

• Globally, green hydrogen has been touted as the fuel of the future due to its numerous advantages and extreme potential.
• About Hydrogen:
  • It is a colourless, odourless, tasteless, non-toxic and highly combustible gaseous substance.
  • Also, it is the lightest, simplest and most abundant member of the family of chemical elements in the universe.
• About Green Hydrogen:
  • Depending on the method of production employed, different colours are assigned to hydrogen.
  • Green hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity.
• Advantages of green hydrogen as a fuel:
  • Climate change mitigation: The method of producing green hydrogen does not emit any greenhouse gases.
  • Energy efficiency: A hydrogen fuel cell is two to three times more efficient than an internal combustion engine fuelled by gas.
  • Storage: Hydrogen has the highest energy per mass of any fuel, which means that the higher the energy density of a system, the greater the amount of energy you can store.
  • Grid stability: The intermittent nature of renewable energy, especially wind, leads to grid instability. But, green hydrogen can be stored for long periods of time which can be used to produce electricity using fuel cells.
  • Monetary benefits: Experts say the oxygen, produced as a by-product can also be monetized by using it for industrial and medical applications or for enriching the environment.
• Current viability of green hydrogen in India: Green hydrogen is not commercially viable at present. The current cost in India is around Rs 350-400 per kg;
  • It is likely to become viable only at a production cost of under Rs 100/ kg. This is what the Hydrogen Energy Mission aims for.

About the National Green Hydrogen Mission

Launch

• The mission was first launched in 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy.

Implementation

• The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.

Outlay

• The initial outlay for the Mission will be Rs.19,744 crore.
• Out of the total outlay, the government has allocated ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.
• The rest ₹1,466 crore for the upcoming pilot projects, ₹400 crore for R&D, and ₹388 crore towards other mission components.

Expected Outcomes by 2030

• Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum
• 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

Key Features of the Mission

• SIGHT Programme: Under this, two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.
• Green hydrogen hubs: Regions capable of supporting large scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.
• End-use sectors: The Mission will also support pilot projects in emerging end-use sectors and production pathways.
• Strategic Hydrogen Innovation Partnership (SHIP): A public-private partnership framework for R&D will be facilitated under the Mission.

Benefits of the Mission

• Creation of export opportunities for Green Hydrogen and its derivatives.
• Decarbonisation of industrial, mobility and energy sectors;
• Reduction in dependence on imported fossil fuels and feedstock.
• Development of indigenous manufacturing capabilities;
• Creation of employment opportunities; and
• Development of cutting-edge technologies.

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