Mission works on making India Global Hub for hydrogen energy
Many countries around the world including European Union, Singapore, South Korea and Japan have announced their new strategies to import Green and Clean Hydrogen and its derivatives, thereby providing export opportunities for Indian producers, Minister for New & Renewable Energy and Power R. K. Singh has told Rajya Sabha on 12 Dec 2023.
Such opportunities support MNRE’s National Green Hydrogen Mission which is working on to make India a Global Hub for production, usage and export of Green Hydrogen and its derivatives, he said in a written replay to the house.
The expected outcomes of the Mission by 2030 are as follows:
India’s Green Hydrogen production capacity is likely to reach 5 MMT per annum, contributing to reduction in dependence on import of fossil fuels.
Achievement of Mission targets is expected to reduce a cumulative Rs.1 lakh crore worth of fossil fuel imports by 2030.
This is likely to leverage over Rs.8 lakh crore in total investments and create over 6 lakh jobs.
Nearly 50 MMT per annum of CO2 emissions are expected to be averted through production and use of the targeted quantum of Green Hydrogen.
The National Green Hydrogen Mission has a provision for supporting pilot projects for low-carbon steel, mobility, shipping, and ports.
The Mission provides allocation for various sub-components of the Mission such as SIGHT, Pilot projects, R&D etc. to fund specific selected projects. There is no State-wise allocation made under the Mission.
Various financial and non-financial measures have been announced under the Mission, including inter – alia, the following:
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 green steel, mobility, shipping, decentralized energy applications, hydrogen production from biomass, hydrogen storage, among others;
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.
Additionally, the Minister highlighted the provisions announced to promote the production and utilization of green hydrogen and its derivatives in various sectors.
Ministry of Environment, Forests and Climate Change has exempted Green Ammonia plants from prior environmental clearances under Environment Impact Assessment notification 2006 vide notification dated 28 July 2023, he said.
The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme is a major financial measure with an outlay of Rs.17,490 crore, Singh added.
The programme consists of two distinct financial incentive mechanisms to support domestic manufacturing of electrolysers and production of Green Hydrogen.
The major challenges include the differential in the cost of Green Hydrogen as compared to Grey Hydrogen, high cost of storage and transportation, lack of established supply chains, paucity of testing infrastructure etc.
However, India possesses the following advantages which are expected to enable production of Green Hydrogen by Indian producers at competitive rates, said the Minister.
The country’s competitive RE Tariffs is among the lowest in the world.
Further, single integrated grid which enables transfer of RE power from RE rich zones to the production site, thereby minimizing transport and storage cost of Green Hydrogen, he underlined. Fiinews.com
