Union cabinet approves Rs 19,744 cr National Green Hydrogen Mission

The Union cabinet approved National Green Hydrogen Mission, which was announced by Prime Minister Narendra Modi during his 2021 Independence Day speech. The mission entails the production of green hydrogen as an alternative energy source to meet the growing domestic demands.

The mission will have an initial outlay of Rs.19,744 crore.

Information and Broadcasting Minister Anurag Thakur said the mission aims to have several outcomes by 2030, including the 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. “In all, over Rs. 8 lakh crore in total investments will be made, which will lead to creation of over six lakh jobs; cumulative reduction in fossil fuel imports over Rs. 1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions.”

Among the various benefits envisaged include creation of export opportunities for green hydrogen and reduction in dependence on imported fossil fuels, development of indigenous manufacturing capabilities and creation of employment opportunities.

“The mission will facilitate demand creation, production, utilisation and export of green hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms, targeting domestic manufacturing of electrolyser and production of green hydrogen, will be provided under the mission. The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilization of hydrogen will be identified and developed as green hydrogen hubs,” the cabinet statement said.

Out of the total initial outlay of Rs.19,744 crore, an outlay of Rs.17,490 crore will be for the SIGHT programme, Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crore towards other mission components.

The government will bring out policy framework for the establishment of green hydrogen ecosystem. This will include standards and regulations framework, encouraging a public-private partnership framework for research and development.