How National Green Hydrogen Mission seeks to Reduce Cost of Green Hydrogen

Source: The post is based on the article “How National Green Hydrogen Mission seeks to Reduce Cost of Green Hydrogen”  published in PIB on 9th August 2023.

What is the News?

The Union Minister for New & Renewable Energy has informed Lok Sabha about the steps taken to promote Green Hydrogen.

How is Green Hydrogen produced?

Green Hydrogen can be produced through electrolysis of water using renewable electricity, and from biomass through thermochemical and biochemical routes.

The costs of the electrolysers and input renewable energy are the two major components of Green Hydrogen production cost. 

At present, there is very limited production of Hydrogen through renewable sources in the country. 

Several entities have announced plans to set up production facilities for Green Hydrogen/Green Ammonia in India. However, these are still at a preliminary stage.

What is the National Green Hydrogen Mission?

Aim: To make India a Global Hub for production, usage and export of Green Hydrogen and its derivatives. 

Components: The following components have been announced as part of the Mission:

– Facilitating demand creation through exports and domestic utilization;

– Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. The programme comprises two distinct financial incentive mechanisms to support domestic manufacturing of electrolysers and production of Green Hydrogen;

– Pilot Projects for green steel, mobility, shipping, decentralized energy applications, hydrogen production from biomass, hydrogen storage, etc.;

– Development of Green Hydrogen Hubs; Support for infrastructure development;

— Establishing a robust framework of regulations and standards; Research & Development programme; Skill development programme; and Public awareness and outreach programme.

What are the expected benefits of the National Green Hydrogen Mission?

Firstly, it is expected to lead to development of 5 MMT (Million Metric Tonne) Green Hydrogen production capacity per annum by 2030, contributing to reduction in dependence on import of fossil fuels.

Secondly, achievement of Mission targets is expected to reduce a cumulative ₹ 1 lakh crore worth of fossil fuel imports by 2030.This is likely to leverage over ₹8 lakh crore in total investments and create over 6 lakh jobs.

Thirdly, nearly 50 MMT per annum of CO2 emissions are expected to be averted through production and use of the targeted quantum of Green Hydrogen.