Cabinet Approves National Green Hydrogen Mission

January 5, 2023

The Union Cabinet, led by Indian Prime Minister Narendra Modi, has approved the National Green Hydrogen Mission. The mission aims to make India a global hub for the production, utilization, and export of green hydrogen and its derivatives. It will also help India become energy independent and decarbonize major sectors of the economy.

The initial outlay for the mission will be Rs. 19,744 crore, including Rs. 17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, Rs. 1,466 crore for pilot projects, Rs. 400 crore for research and development, and Rs. 388 crore for other mission components.

Benefits of the Mission

The National Green Hydrogen Mission is expected to have wide-ranging benefits, including:

Creation of export opportunities for green hydrogen and its derivatives
Decarbonization of the industrial, mobility, and energy sectors
Reduction in dependence on imported fossil fuels and feedstock
Development of indigenous manufacturing capabilities
Creation of employment opportunities
Development of cutting-edge technologies

Projected Outcomes by 2030

By 2030, the National Green Hydrogen Mission is expected to achieve the following outcomes:

Development of green hydrogen production capacity of at least 5 million metric tons per year, with an associated renewable energy capacity addition of about 125 GW
Over Rs. 8 lakh crore in total investments
Creation of over 6 lakh jobs.
Cumulative reduction in fossil fuel imports of over Rs. 1 lakh crore
Abatement of nearly 50 million metric tons of annual greenhouse gas emissions

Implementation of the Mission

The National Green Hydrogen Mission will facilitate the demand, production, utilization, and export of green hydrogen. Under the SIGHT program, two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolyzers 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 utilization of hydrogen will be identified and developed as green hydrogen hubs.
An enabling policy framework will be developed to support the establishment of a green hydrogen ecosystem. A robust standards and regulations framework will also be developed. A public-private partnership framework for research and development (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the mission. R&D projects will be goal-oriented, time-bound, and suitably scaled up to develop globally competitive technologies. A coordinated skill development program will also be undertaken under the mission.

Overall coordination and implementation of the National Green Hydrogen Mission will be the responsibility of the Ministry of New & Renewable Energy. All relevant ministries, departments, agencies, and institutions of the central and state governments will undertake focused and coordinated steps to ensure the successful achievement of the mission’s objectives.

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