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Govt's National Green Hydrogen Mission Targets 6 Lakh Job Creation, Rs 8 Lakh Cr Investment by 2030

With an aim to make India a global hub for the production, utilization and export of green hydrogen and its derivatives, the Union Cabinet has approved the ‘National Green Hydrogen Mission’ with an initial outlay of Rs 19,744 crore.

January 05, 2023. By Manu Tayal

With an aim to make India a global hub for the production, utilization and export of green hydrogen and its derivatives, the Union Cabinet has approved the ‘National Green Hydrogen Mission’ with an initial outlay of Rs 19,744 crore.
This initial outlay of Rs 19,744 crore includes an outlay of Rs 17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other Mission components.
The move is expected to help India in becoming energy independent and in decarbonizing major sectors of the country’s economy.
Moreover, the overall coordination and scheme guidelines for the implementation of respective components would be formulated by the Ministry of New & Renewable Energy.
Under the mission, the government aimed at developing a green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in India by 2030.
Through this mission, the government is targeted to attract over Rs 8 lakh crore investments, create over 6 lakh jobs, and avert nearly 50 MMT per annum of CO2 emissions by 2030.
The various other benefits of the mission include - production, utilization and creation of demand & export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies.
Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen would be provided. 
Besides, the mission would also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production and/or utilization of hydrogen would be identified and developed as green hydrogen hubs, said the official release of the Cabinet.
Through this step, the government is trying to develop a policy framework to support the establishment of the green hydrogen ecosystem, along with the robust Standards and Regulations framework, it added.
Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) would be facilitated under the Mission; R&D projects would be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies, the release further mentioned. 
Moreover, a coordinated skill development programme would also be undertaken under the mission.
Meanwhile, all the concerned ministries, departments, agencies and institutions of the Central and State Governments would undertake focussed and coordinated steps to ensure the successful achievement of the Mission objectives. 
On the government’s announcement, Shubhranshu Patnaik, Energy, Resources and Industrials Partner, Deloitte India, said “the announcement of incentives under the National Hydrogen Mission Plan, along with the scale of likely hydrogen demand (25 MT by 2030) in the country, positions India as amongst the top 3 attractive nations globally for green hydrogen demand and production. It is a crucial policy measure in establishing India as a leader in manufacturing and production of green hydrogen. What will be required alongside this ambitious mission is to create adequate demand by transiting hard-to-abate user industries through incentives and obligations towards green hydrogen.”
Deepto Roy, Partner, Shardul Amarchand Mangaldas & Co, said “the successful fashioning of Green Hydrogen infrastructure is key for India’s move towards net zero emissions, since green hydrogen has the potential to replace carbon heavy fuel in several key sectors. The outlay on the National Hydrogen Mission would also hopefully provide impetus to continued addition of renewable generation capacity which has been seeing some tailwinds in recent times.”

“The potential and challenges associated with green hydrogen are palpable. The cabinet's decision clarifies the previously announced hydrogen policy in 2022, enabling for the transition to a hydrogen-based economy. The Government's initial aim to turn India into an export centre for hydrogen generation will gain momentum as a result of this announcement, which will add clarity and emphasis to the subject of green hydrogen. The investment commitment will concentrate on the growth of indigenous Electrolyzer manufacturers and the development of green hydrogen. There has already been an increasing trend in terms of development of Indigenous Electrolyzer manufacturers and technology tie-ups and partnerships are being announced by various companies. Now the Hydrogen technology research and development will be intensified.  In addition to enhancing India's capacity for growth, the strategy would pave the way for decrease in carbon emissions and the achievement of Net Zero by 2070. Further this policy not only increases job prospects but also contributes to a decrease in overall fossil fuel imports, which benefits the economy. In This mission is expected to result in the development of at least 5 MMT (Million Metric Tonnes) of green hydrogen production capacity per year, with an associated renewable energy capacity augmentation of around 125 GW in the country. It would also result in a reduction of over Rs. one lakh crore in fossil fuel imports and a decrease of about 50 MMT of annual greenhouse gas emissions. India has outlined its emphasis on green hydrogen and the path it would be pursuing by including production and export targets in the strategy. India has also raised the bar by creating Green Hydrogen not just for domestic consumption but also for export. The creation, transport, and storage of hydrogen as well as the production of green ammonia and green methanol would provide new commercial prospects for Indian manufacturers.  Indian Process Equipment manufacturers need to speed up their preparation efforts in terms of technologies & infrastructure development and focus on their readiness to cater to this emerging market. We at Godrej are supplying to the global Blue and Green Hydrogen projects and we also intend to venture into manufacturing Electrolysers,” said Hussain Shariyarr, Senior Vice President & Business Head, Godrej Process Equipment.
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