India

Country: India

Document type: National Strategy

National Green Hydrogen Mission

Released: January 2023

Mission – Summary Points:

In his August 2021 Independence Day speech, the Indian Prime Minister ‘launched’ the National Hydrogen Mission, indicating that green hydrogen would play a crucial role in helping the nation to mitigate climate change, with ambitions for India to become a global hub for green hydrogen production and exports.

In January 2023, the Ministry of New and Renewable Energy released the National Green Hydrogen Mission document. Key points include:

  • The Mission would build capabilities to produce at least 5 million tonnes of green hydrogen by 2030, with the potential to reach 10 million tonnes per annum should growth in export markets eventuate.
  • Development of a robust domestic electrolyser manufacturing ecosystem is considered a critical objective.
  • A phased development approach is foreseen:
    • Phase 1 (2022-23 to 2025-26): Initial focus on green hydrogen development in sectors that already use hydrogen (e.g., refineries, fertiliser manufacture, city gas networks) and progressing R&D, regulations/standards development and pilot projects (e.g., steel production, long haul heavy-duty mobility, and shipping).
    • Phase 2 (2026-27 to 2029-2030): Build on Phase 1 and undertake initiatives in new sectors of the economy (e.g., railways, aviation).
  • An initial outlay for the Mission of Rs 19,744 crore, with key initiatives including:

The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme (Rs 17,490 crore)

The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme is a key financial support measure under the Mission with an outlay of Rs. 17,490 crore: it proposes two distinct financial incentive mechanisms, targeting support for domestic manufacturing of electrolysers, and support for the production of green hydrogen.

  • In June 2023, the Scheme Guidelines for implementation of the ‘SIGHT Programme – Component I: Incentive Scheme for Electrolyser Manufacturing’ was released for the period FY2025-26 to 2029-30, with a total outlay of Rs. 4,440 crore under this component (across all Tranches). In December 2023, the Indian Government (via the Solar Energy Corporation of India) published the list of bidders after Envelope-1 bid opening. In January 2024, the Solar Energy Corporation of India released the capacity allocation for selection of electrolyser manufacturers for setting up manufacturing capacities for electrolysers in India under the SIGHT scheme (Tranche-1). In March 2024, the Ministry of New and Renewable Energy released Scheme Guidelines for implementation of the ‘SIGHT Programme – Component I: Incentive Scheme for Electrolyser Manufacturing Tranche II’, with the capacity available for bidding under Tranche II at 1,500 MW.
  • In June 2023, the scheme guidelines for implementation of the ‘SIGHT Programme – Component II: Incentive Scheme for Green Hydrogen production (under Mode 1)’ was released for the period FY2025-26 to 2029-30, with a total outlay of Rs. 13,050 crore under this component (across all Tranches). In December 2023, the Indian Government (via the Solar Energy Corporation of India) published the list of bidders after Envelope-1 bid opening. In January 2024, the Solar Energy Corporation of India released the capacity allocation for selection of green hydrogen producers for setting up of production facilities for green hydrogen in India under the SIGHT scheme (Mode 1-Tranche-1). In July 2024, the Ministry of New and Renewable Energy Scheme released Guidelines for implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1) – Tranche-II, with capacity available for bidding under Tranche II of Mode 1 set at 450,000 tonnes of renewables-based hydrogen.
  • In January 2024, the Ministry of New and Renewable Energy launched the scheme guidelines for Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme Component-II: Incentive for Procurement of Green Ammonia Production (under Mode-2A), with the Solar Corporation of India as the implementing agency. In June 2024, the Solar Corporation of India issued an RfS for Selection of Green Ammonia Producers for Production and Supply of Green Ammonia in India through Cost-Based Competitive Bidding under Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-2A-Tranche-I). Media reports indicate that the the capacity set for bidding has been raised to 750,000 tonnes per annum of green ammonia compared to the 550,000 tonnes per annum in the scheme guidelines for the National Green Hydrogen Mission.
  • In January 2024, the Ministry of New and Renewable Energy launched the scheme guidelines for Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme Component-II: Incentive for Procurement of Green Hydrogen Production (under Mode-2B); this scheme is based around supply of hydrogen to refineries with the implementing agencies as nominated by the Ministry of Petroleum and Natural Gas.

Pilot Projects (Rs 1,466 crore)

Targeted sectors include steel, port and shipping. long range heavy mobility, biomass to hydrogen.

Green Hydrogen Hubs (Rs 400 crore)

The Mission will identify and develop regions capable of supporting large-scale production and/or utilisation of hydrogen as green hydrogen hubs. Two such hubs are planned in the initial phase. An outlay of Rs. 400 crore up to 2025-26 for hubs and other projects is budgeted.

In March 2024, the Ministry of New and Renewable Energy released Scheme Guidelines for setting up Hydrogen Hubs in India under the National Green Hydrogen Mission. The Guidelines include a budgetary outlay of Rs. 200 crore until FY2025-26.

Research and Development

In October 2023, the Ministry of New and Renewable Energy released the final R&D Roadmap for Green Hydrogen Ecosystem in India.

In March 2024, the Ministry of New and Renewable Energy released Scheme Guidelines for the implementation of the R&D scheme under the National Green Hydrogen Mission. The Guidelines include a budgetary outlay of Rs. 400 crore till FY2025-26. Co-incidentally with the release of the above R&D Scheme Guidelines, the Ministry of New and Renewable Energy invited a first call for proposals under the R&D Scheme.

Skills Development

In March 2024, the Ministry of New and Renewable Energy released Guidelines for scheme on skilling, up-skilling and re-skilling under the National Green Hydrogen Mission for the period from FY2023-24 to FY2029-30 with a total outlay of Rs. 35 crore.

Standards and Regulations

In July 2024, the Ministry of New and Renewable Energy released Scheme Guidelines for funding of testing facilities, infrastructure, and institutional support for development of Standards and Regulatory framework under the National Green Hydrogen Mission with a budgetary outlay of Rs. 200 Core till FY2025-26.

Certification

In September 2024, the Ministry of New and Renewable Energy released the draft Green Hydrogen Certification Scheme of India for stakeholder comment (with comments on the proposed scheme to be sent latest by 27 September 2024).

Other Programs and Initiatives

In June 2023, the World Bank approved US$1.5 billion in financing to accelerate India’s development of low-carbon energy. The First Low-Carbon Energy Programmatic Development Policy Operation – the first in a series of two envisaged operations – would support implementation of India’s National Green Hydrogen Mission. In June 2024, the World Bank approved US$1.5 billion in financing for the Second Low-Carbon Energy Programmatic Development Policy Operation and which would support reforms to boost the production of green hydrogen and electrolysers. The operation also supports reforms to boost renewable energy penetration.

In August 2023, in support of the National Green Hydrogen Mission, the Ministry of New and Renewable Energy released an Office Memorandum on the Green Hydrogen Standard for India.

In March 2024, media reports indicated that the Indian state of Uttar Pradesh had, among other things, approved a green hydrogen policy which has been set for 5 years and that industries establishing themselves within this timeframe would receive subsidies and other incentives totalling Rs 5,045 crore.  According to reports, the policy outlines a goal to produce one million tonnes of green hydrogen annually by 2028.

 

Updated: July 2024