Overview
The National Green Hydrogen Mission is a flagship initiative of the Government of India aimed at creating a comprehensive ecosystem for the production, utilisation and export of green hydrogen.
Green hydrogen is produced through the electrolysis of water using renewable energy sources such as solar and wind power. It is considered a key pillar in achieving deep decarbonisation and long-term energy security.
The Mission seeks to reduce dependence on fossil fuel imports and position India as a global leader in green hydrogen technologies.
Approval and Budget
- Approved by the Union Cabinet in January 2023
- Total financial outlay of ₹19,744 crore
- Implemented by the Ministry of New and Renewable Energy
Objectives
- Establish India as a global hub for green hydrogen production and export
- Promote domestic manufacturing of electrolysers
- Enable large-scale decarbonisation of industry
- Achieve energy self-reliance
- Support India’s climate commitments
Key Components
Strategic Interventions for Green Hydrogen Transition (SIGHT)
- Incentives for domestic electrolyser manufacturing
- Incentives for green hydrogen production
- Performance-linked support
Green Hydrogen Hubs
- Identification of states and regions for cluster-based development
- Integration of production, storage and export infrastructure
Pilot Projects
- Low-carbon steel
- Mobility and transport
- Shipping
- Other hard-to-abate sectors
Research and Development
- Innovation in electrolyser technology
- Storage and transport solutions
- Cost reduction pathways
Targets by 2030
- Production capacity of at least 5 million metric tonnes per annum
- Addition of approximately 125 GW renewable energy capacity
- Investment mobilisation of over ₹8 lakh crore
- Creation of more than 6 lakh jobs
- Reduction in fossil fuel imports exceeding ₹1 lakh crore
- Avoidance of nearly 50 million metric tonnes of greenhouse gas emissions annually
Implementation Phases
Phase I 2022–23 to 2025–26
- Build supply and demand ecosystem
- Focus on refineries, fertilisers and city gas distribution
- Promote domestic electrolyser manufacturing
- Establish regulatory framework
Phase II 2026–27 to 2029–30
- Expand to steel, mobility, shipping, railways and aviation
- Achieve cost competitiveness with fossil fuels
- Scale up commercial projects
- Intensify research and innovation
Current and Projected Demand
- Current hydrogen consumption is approximately 6 million tonnes annually
- Primarily used in fertilisers and refineries
- By 2050, demand projected to reach 28 million tonnes
- Target to meet around 80 percent of future demand through green hydrogen
Benefits and Goals
Decarbonisation
- Supports transition to low-carbon economy
Reduced Import Dependence
- Lowers reliance on imported fossil fuels
Indigenous Manufacturing
- Builds domestic capacity in electrolysers and hydrogen technologies
Employment Generation
- Creates new jobs in renewable energy and manufacturing
Export Potential
- Positions India as supplier of green hydrogen and derivatives
Challenges
Incentive Adequacy
- Initial production incentives may be lower compared to global standards
Global Competition
- Other countries offer higher subsidies and tax credits
High Production Cost
- Electrolyser cost and renewable energy pricing remain critical
Infrastructure Gaps
- Storage, transport and distribution systems need development
Funding Constraints
- Public allocation may not fully cover long-term scale-up requirements
Conclusion
The National Green Hydrogen Mission represents a strategic shift towards clean energy-led industrial transformation. Its success depends on technological innovation, competitive incentives, infrastructure development and strong coordination between industry and government.
