India’s National Green Hydrogen Mission, approved by the Union Cabinet on January 4th, 2023, marks a significant leap towards achieving energy independence by 2047 and attaining net zero emissions by 2070.
With a budget allocation of ₹ 19,744 crore, this ambitious initiative aims to position India as the global hub for the production, usage, and export of green hydrogen and its derivatives.
The mission sets forth clear milestones, including the establishment of capacities to produce at least 5 Million Metric Tonne (MMT) of green hydrogen annually by 2030, with the potential to reach 10 MMT per annum through the expansion of export markets and international partnerships. It also targets kick-starting global demand to nearly 100 million metric tonnes (MMT) for green hydrogen and its derivatives by 2030.
The Ministry of New & Renewable Energy (MNRE) recently unveiled guidelines for pilot projects aimed at utilizing green hydrogen in various sectors, particularly transport. With a focus on four-wheelers, buses, long-haul trucks, and heavy-duty vehicles, these projects aim to leverage fuel cell-based and internal combustion engine-based propulsion techniques to drive sustainability in the transport sector.
The Green Hydrogen Mission also prioritizes the iron and steel sector, alongside the shipping industry, by supporting pilot projects aimed at substituting fossil fuels and feedstock with green hydrogen. With a budget allocation of Rs. 115 Crore for pilot projects in the maritime sector and Rs. 496 crore until 2025-26 for initiatives in iron and steel, India is poised to lead innovation and drive decarbonization in these crucial sectors.
India’s ambitious green hydrogen goals are underpinned by distinct advantages, including vast renewable energy sources and a robust industrial infrastructure. With a focus on reducing production costs and leveraging renewable energy potential, India aims to achieve the world’s lowest green hydrogen production costs, potentially reaching USD 0.75 per kilogram by 2050.
