India

Country: India

Document type: National Strategy

National Green Hydrogen Mission

Released: January 2023

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).
• Two mandates on publicly owned companies are included in the document:
  • The shipping Corporation of India is to retrofit at least two ships to run on green hydrogen or a derivative fuel by 2027.
  • India’s government-run oil and gas companies, or public sector undertakings (PSUs), are to charter at least one ship each to be powered by green hydrogen or a derivative fuel by 2027.
  • To support refuelling, green ammonia bunkers and refuelling facilities are to be established at least at one port by 2025 (and at all major ports by 2035).

The Union Cabinet approved the National Green Hydrogen Mission with an outlay of Rs. 19,744 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 an outlay of Rs. 4,440 crore under this component
• 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 an outlay of Rs. 13,050 crore for all modes under this component

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 July 2023, the Ministry of New and Renewable Energy released the draft R&D Roadmap for Green Hydrogen Ecosystem in India for consultation.

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.

 

Updated: August 2023