By transitioning to green hydrogen, India aims to significantly reduce its reliance on fossil fuels
In a major step toward addressing climate change and advancing India's clean energy agenda, Prime Minister Narendra Modi inaugurated the second edition of the International Conference on Green Hydrogen (ICGH-2024) via video message on Wednesday (September 11, 2024). The three-day event, being held in New Delhi from September 11-13, 2024, showcases India’s ambitious goals under the National Green Hydrogen Mission and its commitment to becoming a global leader in green hydrogen production, use, and export.

Prime Minister Modi began his address by reaffirming India’s commitment to tackling climate change, stressing the importance of green hydrogen as a sustainable and transformative energy solution. He proudly stated that India was the first country to meet its commitments under the Paris Agreement on green energy. 

Green hydrogen, as Prime Minister Modi emphasized, has the potential to decarbonize industries that have traditionally been difficult to electrify. These include critical sectors such as refineries, fertilizers, steel, and heavy-duty transportation. By transitioning to green hydrogen, India aims to significantly reduce its reliance on fossil fuels, cut carbon emissions, and set a new benchmark for sustainable energy use worldwide.

The National Green Hydrogen Mission (2023-2030)

 A key highlight of the Prime Minister’s speech was the unveiling of ambitious targets under the National Green Hydrogen Mission (2023-2030). He outlined the government’s commitment to attracting investments worth ₹8 lakh crore and creating 6 lakh jobs within the green hydrogen sector by 2030. This mission is designed to accelerate India's transformation into a global hub for green hydrogen production, contributing to the global shift toward cleaner energy sources.

The mission, as Prime Minister Modi explained, will not only bolster India’s economy but also stimulate industrial growth, infrastructure development, and innovation. By encouraging investments in the green hydrogen space, India aims to foster cutting-edge research, build essential infrastructure, and promote cross-sectoral collaboration to overcome challenges in scaling up green hydrogen technology.

The Prime Minister emphasized the critical role of research and development (R&D) in advancing green hydrogen technology. For green hydrogen to be affordable and scalable, continued support for innovative research is essential. This includes the development of efficient electrolysers for hydrogen production and advancements in storage and distribution technologies.

India’s strategy to promote green hydrogen also involves establishing a comprehensive infrastructure to support its production, storage, and distribution. This infrastructure will include pipelines, storage facilities, and transportation systems to ensure the seamless movement of hydrogen for both domestic use and export.

The overarching objective of the National Green Hydrogen Mission is to position India as a global leader in the production, use, and export of green hydrogen and its derivatives. As part of this mission, the government seeks to contribute to India's Aatmanirbhar Bharat (self-reliant India) initiative through clean energy. This move toward self-reliance in the energy sector is not only economically strategic but also vital for achieving long-term sustainability.

“Green hydrogen is set to become a cornerstone of India’s energy transition,” Prime Minister Modi said, adding that the mission will lead to significant decarbonization of the economy, reduce dependence on fossil fuel imports, and enable India to assume technological and market leadership in the green hydrogen sector.

To ensure a strong domestic and global demand for green hydrogen, the government is implementing several initiatives to promote the consumption and export of green hydrogen and its derivatives, such as green ammonia and green methanol. A key policy under the mission mandates a minimum share of green hydrogen consumption by designated consumers in industries such as energy and feedstock.

The mission also supports the competitive bidding process to drive demand aggregation and procurement of green hydrogen. This approach will encourage businesses to invest in green hydrogen solutions and stimulate market growth. The Ministry of New and Renewable Energy (MNRE) will develop a suitable certification framework to ensure that green hydrogen is produced from renewable energy (RE) sources, thus reinforcing India’s reputation for clean energy leadership.

India's Ambitious Green Hydrogen Strategy 

 The Strategic Interventions for Green Hydrogen Transition (SIGHT) program is another pillar of India’s green hydrogen strategy. With a proposed outlay of ₹17,490 crore up to 2029-30, this program will offer financial incentives for the manufacturing of electrolysers and the production of green hydrogen. 

India will also undertake several pilot projects aimed at demonstrating the effectiveness of green hydrogen in various industries. These pilot projects will focus on sectors such as low-carbon steel, mobility, and shipping, with a total outlay of ₹1,066 crore allocated until 2029-30. 

Another key aspect of the mission is the creation of Green Hydrogen Hubs, which will serve as dedicated regions for large-scale production and utilization of hydrogen. These hubs will be critical in developing the infrastructure required to sustain India’s green hydrogen ecosystem. The mission has set aside ₹400 crore for the development of these hubs and other related projects by 2025-26.

To support the rollout of green hydrogen production, the government has introduced an enabling policy framework that includes waivers on interstate transmission charges for renewable energy used in green hydrogen production. The framework also facilitates renewable energy banking and grants Open Access for green hydrogen projects, ensuring a favorable environment for industry growth.

A coordinated skill development program will also be implemented under the mission, in partnership with the Ministry of Skill Development and Entrepreneurship. This program aims to equip the workforce with the skills required to support the growing green hydrogen industry, covering various segments such as manufacturing, infrastructure, and research.

Additionally, the mission emphasizes international cooperation as a key component of India’s green hydrogen strategy. By forging strategic partnerships and engaging in cross-border collaborations, India will be better positioned to leverage global expertise and capitalize on export opportunities in the green hydrogen sector.

The governance structure for the National Green Hydrogen Mission includes an Empowered Group (EG) chaired by the Cabinet Secretary and an Advisory Group comprising experts who will provide guidance on scientific and technological matters. A Mission Secretariat housed within the MNRE will oversee the implementation of the program.

The initial outlay for the mission stands at ₹19,744 crore, which includes ₹17,490 crore for the SIGHT program, ₹1,466 crore for pilot projects, ₹400 crore for R&D, and ₹388 crore for other mission components. This substantial investment reflects India’s commitment to driving the green hydrogen revolution.

India’s bold targets for green hydrogen, unveiled by Prime Minister Narendra Modi, mark a significant leap forward in the country’s pursuit of sustainable energy and climate resilience. The National Green Hydrogen Mission will not only decarbonize India's economy and reduce its dependence on fossil fuels but also position the nation as a global leader in clean energy innovation. With a comprehensive strategy encompassing R&D, infrastructure development, skill-building, and international cooperation, India is poised to take center stage in the global green hydrogen revolution.