Indian Green Hydrogen Policy

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India's National Green Hydrogen Mission aims to position the country as a global hub for the production, utilization, and export of green hydrogen and its derivatives, contributing to energy self-reliance and the global clean energy transition. Source: Ministry of New and Renewable Energy

Key Objectives:

  • Production Capacity: Achieve at least 5 million metric tonnes (MMT) of green hydrogen production per annum by 2030. International Energy Agency

  • Renewable Energy Expansion: Add approximately 125 GW of renewable energy capacity by 2030 to support green hydrogen production. International Energy Agency

  • Emissions Reduction: Reduce nearly 50 MMT of annual greenhouse gas emissions by 2030. International Energy Agency

Strategic Interventions for Green Hydrogen Transition (SIGHT):

The mission proposes two financial incentive mechanisms with an outlay of ₹17,490 crore up to 2029-30:

  1. Electrolyser Manufacturing Incentives: Support domestic manufacturing of electrolysers, essential for green hydrogen production. Ministry of New and Renewable Energy

  2. Green Hydrogen Production Incentives: Encourage the production of green hydrogen to meet domestic demand and export goals. Ministry of New and Renewable Energy

Demand Creation:

  • Domestic Consumption: The government will mandate a minimum share of green hydrogen or its derivatives consumption for designated consumers in sectors like energy and feedstock. Ministry of New and Renewable Energy

  • Competitive Bidding: Aggregate demand and procure green hydrogen and green ammonia through competitive bidding processes. Ministry of New and Renewable Energy

  • Certification Framework: The Ministry of New and Renewable Energy (MNRE) will develop regulations to certify green hydrogen and its derivatives produced from renewable energy sources. Ministry of New and Renewable Energy

Policy Support:

  • Open Access for Renewable Energy: Green hydrogen and green ammonia plants will be granted open access for sourcing renewable energy within 15 days of application receipt. Power Ministry of India

  • Energy Banking: Facilities will be allowed to bank unconsumed renewable energy for up to 30 days, aiding in energy management. Power Ministry of India

  • Wheeling Charges Waiver: Waivers on interstate transmission charges for a period of 25 years for projects commissioned before June 30, 2025, to reduce costs. Power Ministry of India

Research and Development:

The mission emphasizes R&D to reduce production costs, improve storage and transportation technologies, and enhance the overall efficiency of green hydrogen production and utilization. Press Information Bureau

Implementation and Monitoring:

An Empowered Group will be established to oversee the mission's implementation, set annual targets, and ensure alignment with national energy goals. Ministry of New and Renewable Energy

Through these comprehensive measures, India aims to significantly decarbonize its economy, reduce fossil fuel imports, and establish itself as a leader in green hydrogen technology and market. Here are the key insights from India's Green Hydrogen Policy:

1. Vision and Goals

  • Global Leadership: Position India as a global hub for green hydrogen production, utilization, and export.
  • Production Target: Achieve 5 million metric tonnes (MMT) of green hydrogen annually by 2030.
  • Renewable Energy Expansion: Add 125 GW of renewable energy capacity by 2030.
  • GHG Emissions Reduction: Reduce 50 MMT of annual greenhouse gas emissions by 2030.

2. Financial Incentives

  • Electrolyser Manufacturing: Incentives for domestic production of electrolysers, critical for green hydrogen production.
  • Green Hydrogen Production: Support for scaling production to meet domestic and export demands, with a budget of ₹17,490 crore.

3. Policy Enablers

  • Open Access for Renewable Energy: Green hydrogen plants can secure renewable energy access within 15 days of application.
  • Transmission Cost Waivers: Interstate transmission charge waivers for projects commissioned before June 30, 2025, for 25 years.
  • Energy Banking: Plants can store unused renewable energy for up to 30 days.

4. Market and Demand Creation

  • Mandated Consumption: Key industries (e.g., fertilizers, refineries) must adopt green hydrogen in production.
  • Competitive Procurement: Government to aggregate demand and enable bidding for green hydrogen supply.
  • Certification Framework: Green hydrogen production to be certified based on renewable energy sources.

5. Strategic Focus Areas

  • Decarbonizing Hard-to-Abate Sectors: Focus on refineries, fertilizers, steel, and long-distance transport.
  • Export Market Development: Build infrastructure to enable India to become a green hydrogen exporter.

6. R&D and Technology

  • Research focuses on:
    • Reducing green hydrogen production costs.
    • Improving storage and transportation technologies.
    • Developing advanced electrolysers.

7. Economic Impact

  • Cost Competitiveness: Aim to make green hydrogen production economically viable.
  • Energy Security: Reduce dependency on imported fossil fuels.
  • Job Creation: Significant potential for employment in renewable energy, manufacturing, and allied sectors.

8. Implementation

  • An Empowered Group will oversee progress, align targets with national energy objectives, and monitor implementation.

Summary

The policy is designed to make green hydrogen the cornerstone of India’s energy transition, enhance energy self-reliance, and establish the country as a leading player in the global green hydrogen economy.

Location: India

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