Why in the News?
The Ministry of New and Renewable Energy (MNRE) has released Scheme Guidelines for funding of testing facilities,infrastructure, and institutional support for development of Standards and Regulatory framework under the National Green Hydrogen Mission.
Key-features of the Guidelines
- Objective: To identify the gaps in the value chain of Green Hydrogen & its derivatives.
- National Institute of Solar Energy (NISE) will be the Scheme Implementation agency (SIA).
- Funding and Disbursement: MNRE will fund up to 100% of the capital cost (for Government entities).
What is Green Hydrogen (GH2)?
It refers to hydrogen produced through electrolysis, which splits water molecules (H20) into hydrogen (H2) and oxygen (02) using electricity generated from renewable sources like solar, wind, hydro etc.
- Another method of producing GH2 is from biomass, which involves the gasification of biomass to produce hydrogen.
Applications of GH2:
Fuel Cell Electric Vehicles (FCEVs) Aviation and Maritime, Industry (Fertilizer Refinery, Steel,Transport (Road, Rail), Shipping, Power Generation.
National Green Hydrogen Mission (NGHM)
- Launched in 2023
- Duration: Phase I (2022-23 to 2025-26) and Phase II (2026-27 to 2029-30).
- Objective: To make India a Global Hub for production, usage and export of Green Hydrogen and its derivatives.
- Key components:
- Facilitating demand creation through exports and domestic utilization.
- Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which includes incentives for manufacturing of electrolysers and production of green hydrogen.
- Development of Green Hydrogen Hubs (for e.g., 3 ports namely Deendayal (Kandla, Gujarat), Paradip (Odisha) V.O and Chidambaranar (Tuticorin, Tamil Nadu) have been identified.
EXPECTED OUTCOMES OF THE MISSION BY 2030
- India’s Green Hydrogen Production Capacity will reach at least 5 MMT Per Annum
- Create Over 6 lakh Full Time Jobs
- Renewable Energy Capacity Addition of approx. 125 GW
- 50 MMT per annum of C02 Emissions are Expected to be Averted
- Over Rs 8 lakh crore in Total investments.
Challenges in green hydrogen adoption
- Economically viability
- Difficulty in Hydrogen Storage
- Lack of Skill
- Resource scarcity
- Lack of global standards on carbon intensity & safety
Way forward
- Reduce cost
- Incentives
- Research and Development
- Initiate green hydrogen standards and a labelling programme
- Construct an inter-ministerial governance structure
