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- The Union Cabinet on Wednesday approved the National Green Hydrogen Mission with an initial outlay of ₹19,744 crore, in a move aimed at making the country a global hub to produce, utilise and export green hydrogen and its derivatives.
- The government expects that the initiative will help abate nearly 50 million tonnes (MT) of annual greenhouse gas emissions by 2030 and cumulatively reduce fossil fuel imports estimated at over ₹1 lakh crore.
- Briefing presspersons about the Cabinet decisions, Union Information and Broadcasting Minister Minister Anurag Thakur said the mission would be instrumental in making India energy-independent and decarbonising major sectors of the economy.
- The initial outlay includes ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT); ₹1,466 crore for pilot projects; ₹400 crore for research and development; and ₹388 crore for other mission components.
- Hydrogen is sought after as a fuel because its combustion releases only steam. The Ministry of New and Renewable Energy is to formulate the scheme guidelines for implementation of the respective components.
Offers incentives
- The government has already announced some incentives with a view to cutting the cost of hydrogen by half by 2030.
- They include priority power supply for manufacturers, concessions and short-term waivers for distributors and transmission costs, respectively; and the Ministry of New and Renewable Energy is expected to operate a single-window clearance system for proposals.
Centre clears Green Hydrogen Mission
- According to the government, the mission would lead to the development of green hydrogen production capacity of at least 5 MMT per annum with an associated renewable energy capacity addition of about 125 GW by 2030. It is expected to bring in investments of over ₹8 lakh crore, create over six lakh jobs, and help meet international commitments to fight climate change.
- “Under the SIGHT programme, two distinct financial incentive mechanisms — targeting domestic manufacturing of electrolysers and production of green hydrogen — will be provided. The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as green hydrogen hubs,” it said.
- Public-private partnership
- While a robust standards and regulations framework is to be developed for the ecosystem, the mission will facilitate a public-private partnership framework for research and development (R&D).
- The new policy is in part to green the hydrogen used as fuel in various sectors, to the tune of 6 million tonnes per annum as of 2020, and to replace fuels in other sectors.
- Some roadblocks in its implementation are procuring the electrolysers and electrolytes required to produce ‘green’ hydrogen and reducing the contribution of fossil fuel sources in India’s power generation mix. The former are already in great demand; the latter requires more and cheaper solar and wind power.
- The Ministry of Power is expected to raise demand for use of hydrogen as a fuel, which, industry members have noted, could be another issue in the absence of a mandate to transition and technologies to adapt hydrogen fuel cells for use in vehicles.
- Storing and moving hydrogen also incurs non-trivial costs because the gas leaks easily. Even small quantities of liquid hydrogen, which is easier to transport, react explosively with air.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB
