All you want to know about National Green Hydrogen Mission

economy

by 5paisa Research Team Last Updated: Jan 09, 2023 - 02:57 pm 5k Views
Listen icon

If your business produces or uses green fuels, then there is some good news for you. 

The Union Cabinet on Wednesday approved an initial outlay of Rs 19,744 crore for the National Green Hydrogen Mission.

What exactly is this new initiative?

Addressing the nation on its 75th Independence Day in 2021, Prime Minister Narendra Modi launched a national mission for green fuels in line with the Centre's stated target of making India energy-independent before completing 100 years of Independence. 

The mission will have four components that aim at enhancing domestic production of green hydrogen and promote the manufacturing of electrolysers — a key constituent for making green hydrogen.

How does the economics of it work?

The initial outlay for the mission will include Rs 17,490 crore for strategic interventions for green hydrogen transition (SIGHT) programme, Rs 1,466 crore for pilot projects, Rs 400 crore for research and development (R&D), and Rs 388 crore towards other mission components, the Centre said in a statement.

The initial target is to produce 5 million tonnes (mt) of green hydrogen annually.

SIGHT will include two financial incentive mechanisms for the domestic manufacturing of electrolysers and the production of green hydrogen.

The mission will also support pilot projects in emerging end-use sectors and the production pathways. Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as green hydrogen hubs.

And how will the policy be framed to implement it?

An enabling policy framework will be developed to support the establishment of the green hydrogen ecosystem, said the government.

“A robust standards and regulations framework will also be developed. Further, a public-private partnership framework for R&D (strategic hydrogen innovation partnership — SHIP) will be facilitated under the mission,” read the statement.

In February last year, the Ministry of Power notified the green hydrogen/ammonia policy at a production of 5 mt of green hydrogen by 2030. The same target remains in the final mission as well.

According to the policy drafted by the Ministry of Power, green hydrogen/ammonia manufacturers can set up green energy projects or procure the same from energy exchanges. Several waivers, including interstate transmission charges, ease of getting open access, and transmission connectivity, were provided under the policy.

Every leading conglomerate with interest in the energy sector — from new-age renewable energy companies to automotive makers — has announced either investment or consumption plans for green hydrogen.

Which important companies stand to benefit?

Adani Enterprises, Reliance Industries, Tata Group, JSW Energy, Larsen & Toubro, ACME Group, ReNew Power, and others have announced investment plans.

Ashok Leyland, which is India’s leading commercial vehicle manufacturer, is looking at a tie-up to run a section of its fleet on green hydrogen.

How do you rate this blog?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Stock In Action: Hindustan Aeronautics Ltd

Movement of the Day: Rationale Behind HAL Stock Surge: The recent spike in Hindustan Aeronautics Limited (HAL) stock can be attributed to the Defence Acquisition Council's (DAC) approval for the acquisition of Light Combat Helicopter (LCH) and Light Combat Aircraft (LCA) Mk 1A. 

Rekha Jhunjhunwala & Association

"India, a land of opportunities, boasts one of the world's most popular stock markets. Within its dynamic landscape, the stock market presents significant potential for wealth accumulation for those who navigate it skillfully. Yet, it's essential to acknowledge the inherent risks; only a select group of accomplished traders consistently achieve profits.

Market Outlook for 05 December 2023

Nifty started the week with a huge gap up post the state election outcome over the weekend. The index extended its upmove at all-time highs and ended the day just below 20700 with gains of a couple of percent.