India Has Set An Ambitious Target Of Producing 5 MMT Of Green Hydrogen By 2030

India requires INR 9 lakh crore capex in order to carry out the National Green Hydrogen Mission: ICRA

The government declared the Green Hydrogen Mission, which focuses on reducing the reliance on fossil fuel and profit from the increasing green hydrogen demand globally, and the Union cabinet has agreed to an initial outlay of INR 19,744 crore in view of this mission. The mission contains the potential to change India's energy sector, lowering the dependence on fossil fuels by the country while contributing towards a cleaner and more sustainable future.

Among the primary goals of the mission is to boost the production of hydrogen in India. This mission strives to accomplish this by facilitating hydrogen production technologies development, including water electrolysis, biomass gasification, and steam methane reforming. The government is also giving financial and technical help to research institutions and companies working on these technology's development and commercialisation.

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One more goal is to boost hydrogen usage as a fuel for many applications, like power generation, transportation, and industrial processes. Hydrogen has the prospective to substitute fossil fuels in these sectors, lowering emissions of greenhouse gas and contributing to a much cleaner environment. The government also promotes hydrogen fuel cell technologies development, which can reserve and employ hydrogen as a clean and renewable energy source.

Additionally, apart from the promotion of production along with the usage of hydrogen, the mission also aims to create a favourable policy and a regulatory environment for the hydrogen industry's growth in India. This incorporates delivering tax incentives, lowering import duties, as well as establishing the production and distribution infrastructure of hydrogen all over the country. The government is even working on creating a skilled workforce in order to sustain the hydrogen industry's growth and guarantee that essential professional and technical skills are known.

As per ICRA, the Indian government is required to deliver capex of INR 8-9 trillion (within INR 8 lakh crore and INR 9 lakh crore) for carrying out the successful execution of the National Green Hydrogen Mission, which is set to accomplish the goal of green hydrogen production of 5 MMT.

In a report by the research and rating agency, it was stated that further ramp-up in the manufacturing of exports would require extra investments. In addition, calculated investments in electrolysers will be susceptible to the price cycle of the commodity and adding the desired investments to the goal will facilitate conditions in order to decrease fossil fuel imports by 2030 by 3-8 percent.

In order to carry out the National Green Hydrogen Mission, the Ministry of New and Renewable Energy (MNRE) developed guidelines in January 2023. taking into consideration that the sector's nascent stage of phased development has been presented.

Furthermore, considering the involvement of several ministries, the management structure was designed for the effective implementation of the project. From the total hydrogen production, the percentage of green hydrogen in India is anticipated to grow by 2030 to 50 percent (from nil).

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In the mission's second phase, the penetration of all potential sectors comprising aviation, railways etc., is also included to attain the economy's deep decarbonisation. But the government's frequent interventions are required to kindle the process and deliver the impetus required for this emerging sector.

The reduction of 50 MMT GreenHouse Gases (GHG) emissions target for 2030 is anticipated to create 5 percent of the 1 BT emission drop target accepted at COP26 as a component of the five-pronged strategy (Panchamrit) for dealing with climate change.

According to the following article by Procurement Resource, it can be concluded that India has embarked on a journey to hit the target of Producing 5 MMT Of Green Hydrogen By 2030. The project requires INR 9 lakh crore capex in order to carry out the National Green Hydrogen Mission, which will focus on the reduction of fossil fuel reliance and, at the same time, profit from the increasing green hydrogen demand globally. Furthermore, the Union cabinet has agreed to an initial outlay of INR 19,744 crore for the mission, which has the potential to transform India's energy sector while contributing towards a cleaner and more sustainable future.