News Excerpt:

The Union Ministry of New and Renewable Energy (MNRE) has recently published guidelines and incentives to promote the procurement of green hydrogen as part of the National Green Hydrogen Mission.

About the news:

• The incentives are designed to facilitate cost reduction and rapid expansion.
• To qualify for incentives under the scheme, bidders must meet the criteria outlined in the 'National Green Hydrogen Standard' as notified by MNRE.
• The scheme offers a direct incentive over three years from the beginning of production and supply, with rates of Rs 50 / kilogramme of green hydrogen in the first year, Rs 40 / kg in the second year and Rs 30 / kg during the third year.

About National Green Hydrogen Mission:

• It is approved from FY 2023 – 24 to FY 2029 – 30 with an outlay of ₹ 19,744 crore.
• The Mission will build capabilities to produce at least 5 Million Metric tonnes (MMT) of Green Hydrogen per annum by 2030, potentially reaching 10 MMT per annum with the growth of export markets.
• The overarching objective of the Mission is to make India a Global Hub for the production, usage and export of Green Hydrogen and its derivatives.
• The mission has a provision for supporting pilot projects for low-carbon steel, mobility, shipping, and ports.
• The mission allocates various sub-components of the Mission, such as SIGHT, Pilot projects, R&D, etc., to fund specific selected projects. There is no State-wise allocation made under the Mission.

Mission components:

Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme:

• It is a major financial measure with an outlay of ₹ 17,490 crore.
• The programme consists of two distinct financial incentive mechanisms to support the -
• Domestic manufacturing of Electrolysers
• Production of Green Hydrogen
• The scheme's execution will be entrusted to agencies nominated by the Union Ministry of Petroleum and Natural Gas (MoPNG), primarily oil and gas companies, guided by the Centre for High Technology (CHT). 
• The Solar Energy Corporation of India, under the Ministry of New and Renewable Energy, is the implementing agency for the scheme.

Conclusion:

Green Hydrogen will likely play a critical role in India’s energy transition, particularly in decarbonising hard-to-abate sectors. The National Green Hydrogen Mission is a step in this direction. The Mission is expected to facilitate the deployment of the Green Hydrogen ecosystem and create opportunities for innovation and investments across the Green Hydrogen value chain, translating into investments, jobs and economic growth.