homeeconomy NewsIndia approves green hydrogen mission at initial outlay of Rs 19,000 crore

India approves green hydrogen mission at initial outlay of Rs 19,000 crore

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By Parikshit Luthra  Jan 4, 2023 10:07:30 PM IST (Updated)

The National Green Hydrogen Mission plan aims to provide direct incentives for green hydrogen manufacturing to the tune of approximately Rs 13,000 crore.

The Union cabinet approved an initial outlay of Rs 19,744 crore for the National Hydrogen Mission, Union minister Anurag Thakur said on Wednesday. He added that incentives worth more than Rs 17,000 crore will be allotted for electrolyser and green hydrogen manufacturing in the country, while "Rs 400 crores will be spent on developing green hydrogen hubs in the country."

"To encourage manufacturing of low-cost equipment and technologies, two types of incentives will be given — incentives will be given on electrolyser manufacturing for five years and incentive on production of green hydrogen. Green hydrogen hubs will also be developed," Thakur said.
According to the International Energy Agency, an electrolyser is a "critical technology" for the production of low-emission hydrogen from renewable or nuclear electricity.
What else is planned under this mission?
Anurag Thakur said:
> Investments will be made for infrastructure development, shipping and transportation.
> Dedicated R&D fund will be setup with efforts to bring in private sector and venture capital investments.
> Empowered group will be set up and will include green hydrogen experts. Empowered group of secretaries to hold inter-ministerial consultations on implementation of the scheme.
Earlier in the day, sources had said, "Of the Rs 19,744 crore, Rs 17,490 crore will be allocated for Strategic Interventions." "By 2030, India is likely to achieve 5mmt of hydrogen production capacity, while Rs 8 lakh crore is expected in investments."
Prime Minister Narendra Modi had announced the launch of National Hydrogen Mission during his Independence Day speech on August 15, 2021. The Ministry of New and Renewable Energy had then accordingly prepared a draft Mission document. The proposal was passed by the Union cabinet on Wednesday, January 4.
The National Green Hydrogen Mission plan aims to provide direct incentives for green hydrogen manufacturing to the tune of approximately Rs 13,000 crore.
The mission will be spearheaded by the cabinet secretary, empowered group of secretaries. National Hydrogen Energy expert group and mission secretariat.
What is National Hydrogen Mission
The Centre's National Hydrogen Mission emphasises on generating hydrogen from green power sources. It focuses on developing "India as a global hub for manufacturing of hydrogen and fuel cells technology across the value chain".
In a press release issued in March 2022, the government said, "The mission would put forward specific strategy for the short term (four years), and broad strokes principles for long term (10 years and beyond)."
"The aim is to develop India into a global hub for manufacturing of hydrogen and fuel cells technologies across the value chain," the government said in another press release.
(Credit: Money Control) (Credit: Money Control)
On February 17, 2022, the Ministry of Power’s orders said, "Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export / use by shipping. The land for the storage purpose shall be provided by the respective Port Authorities at applicable charges.”
"The number of bunkers to be set up would depend on demand for exports and marine application," RK Singh, Union Minister for Power and MNRE, had informed the Lok Sabha in March 2022.
Why green hydrogen, and not grey or blue?
Hydrogen is classified into three categories — grey, blue and green — depending on the nature of the method of its extraction. "There is a growing focus on increasing production of green and blue hydrogen due to its no carbon emission and use of carbon offset technology, respectively," the government noted.
(Credit: Govt press release) (Credit: Govt press release)
Also, "India has a huge edge in green hydrogen production, owing to its favourable geographic conditions and the presence of abundant natural elements", it said. The Centre further highlighted that the demand for hydrogen is expected to see a five-fold jump to 28 MT by 2050,
where 80 percent of the demand is expected to be green in nature.
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