Indian cabinet approves $2.35 billion grant for green hydrogen, aims 5 mt by 2030

On January 4, 2023, the Indian government announced its National Green Hydrogen Mission, the core of which is the financial support by the government for setting up electrolyser plants, producing green hydrogen, pilot project, research and development and other “mission components” The total outlay for this, which will be dispensed over the years, is Rs 19,400 crore, or $ 2.357 billion. 

Calling it ‘Strategic Interventions for Green Hydrogen Transition’, or SIGHT, the government said that the mission would engender green hydrogen capacity of 5 million tons by 2030—5 mt is the current production of hydrogen in India today, though not through ‘green’ means. 

The government reckons that the program would make way for an estimated $86 billion of investments in the green hydrogen sector, produce 600,000 new jobs, reduce fossil fuel imports of $12 billion in value and annually avoid 50 million tons of carbon dioxide emissions. 

A press release of the government recognizes that there is more work to be done from the government’s side. It promises to do them in due course. “The Mission will facilitate demand creation, production, utilization and export of Green Hydrogen.  Under the Strategic Interventions for Green Hydrogen Transition Program (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.  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 establishment of Green Hydrogen ecosystem.   A robust Standards and Regulations framework will be also developed.  Further, a public-private partnership framework for R&D (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.”