Govt. Unveils Revised Green Hydrogen Pilot Scheme for Residential Use, Decentralised Applications and Emerging Technologies

The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for implementing pilot projects aimed at producing and utilising Green Hydrogen through innovative methods. The scheme targets applications in residential, commercial, and decentralised sectors that were previously left out of earlier Mission initiatives.

The newly revised scheme, sanctioned by the President of India, focuses on deploying Green Hydrogen in off-grid, localised contexts through emerging technologies and pathways. It covers floating solar, biomass-based hydrogen generation, and hydrogen production from wastewater, among other unconventional sources.

The Ministry has emphasised the scheme’s role in supporting the use of Green Hydrogen in everyday activities such as cooking, heating, and power generation, particularly in community setups and off-road vehicles. These pilot initiatives will serve as proof-of-concept to validate technical feasibility, performance, and safety for broader application in India's clean energy future.

The revised scheme supersedes an earlier version notified in November 2024. It will be implemented through designated Scheme Implementing Agencies (SIAs) and is backed by a financial outlay of INR 200 crore until FY 2025-26. The scheme draws its funding from the National Green Hydrogen Mission, launched on January 4, 2023, with an overall budget of INR 19,744 crore aimed at making India a global hub for Green Hydrogen production and exports.

A central goal is to test decentralised production models, which would minimise the need for hydrogen transport and better utilise localised renewable resources like rooftop solar, floating solar, small hydro plants, and wastewater. The projects are expected to significantly reduce carbon emissions, especially in rural and semi-urban areas where conventional fuels like diesel and LPG dominate.

The scheme also promotes the use of Green Hydrogen-derived fuels, such as Green Ammonia and Green Methanol, across sectors like city gas, steel production, shipping, aviation, and heavy-duty transport. Notably, blending hydrogen in city gas distribution systems and using hydrogen-powered off-road vehicles in mining and construction are on the agenda.

Each project under the scheme will be awarded funding based on innovation, commercial viability, scalability, and projected hydrogen output. MNRE has laid out strict monitoring, disbursement, and implementation protocols. The Central Financial Assistance (CFA) will cover up to 100 percent of equipment costs for government organizations and 80 percent for private entities, disbursed in phases: 20 percent at Letter of Award, 70 percent upon milestone achievements, and 10 percent upon completion.

The scheme is structured in two parts: Part A will fund biomass-based and other technology-driven pilot projects with financial support up to INR 25 crore per project; Part B will support startups innovating in hydrogen production/utilization technologies, with a cap of INR 5 crore per project.

To ensure accountability and timely execution, a rigorous evaluation and monitoring framework has been established. A Steering Committee chaired by the MNRE Secretary will oversee the overall execution, while a Project Appraisal Committee (PAC) led by the Mission Director will handle the evaluation and recommendation of projects. The final approvals will come from an Advisory Group headed by the Principal Scientific Advisor to the Government of India.

Executing Agencies will be responsible for ensuring technical and environmental compliance, certifications, and submitting detailed project completion reports. These reports must document all technical aspects, challenges, outcomes, and learnings to guide future scale-ups.

MNRE also plans to issue detailed Intellectual Property Rights guidelines to safeguard innovations developed under the scheme. The Ministry reserves the right to amend the scheme guidelines in future based on operational experience, with approval from the Minister of New and Renewable Energy.

By spearheading such decentralised pilot projects, India aims to create a robust ecosystem around Green Hydrogen, spanning production, distribution, application, and innovation, setting the stage for widespread adoption and commercial deployment in the years ahead.