On Wednesday, the Cabinet approved a national green hydrogen plan with an initial expenditure of Rs 19,744 crore to make India a global hub for manufacturing this benign energy.

In line with plans to reduce the carbon intensity of the country’s gross domestic product (GDP) and achieve net-zero emissions by 2070, the mission seeks to facilitate the development of at least 5 million metric tons of annual green hydrogen capacity by 2030. Associated renewable energy added 125 gigawatts (GW) of new capacity.

The support aims to facilitate investments of Rs 8 trillion to create 6 lakh jobs by 2030. The mandate is estimated to result in a cumulative reduction of more than Rs 1 trillion in fossil fuel imports, reducing annual greenhouse gas emissions by nearly 50 metric tons by 2030.

“Initial expenditure for the mission will be Rs 19,744 crore comprising Rs 17,490 crore for Green Hydrogen Transformation Initiative (SIGHT) strategic intervention programme, Rs 14,660 crore for pilot projects, Rs 400 crore for R&D and Rs 388 crore for other mission components,” a government statement said. The idea is to promote the production, utilisation and export of green hydrogen and its derivatives.

Details of the plan, including guidelines for its implementation, will be developed by the Ministry of New and Renewable Energy.

Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable electricity. It is recognised globally as an enabler of the transition to sustainable energy and a net-zero emission economy. In November 2021, the World Business Council for Sustainable Development and the Sustainable Markets Initiative announced the commitment of 28 global companies to drive growth in hydrogen supply.

Listing the combined benefits of the plan, the government said it would stimulate the creation of export opportunities for green hydrogen and its derivatives, decarbonise industry, transport and the energy sector, and reduce dependence on imported fossil fuels and feedstocks. Develop indigenous manufacturing capabilities, create jobs, and develop cutting-edge technologies.

The mission will also support pilot projects in emerging end-use sectors and production routes. Areas capable of supporting large-scale production and use of hydrogen will be identified and developed as green hydrogen centres.

An enabling policy framework will be developed to support the establishment of a green hydrogen ecosystem. A collaborative skills development programme will also be undertaken following the mandate. All ministries, departments, agencies and agencies of the central and state governments will take focused and coordinated steps to ensure the successful achievement of the mission objectives. The Ministry of New and Renewable Energy will be responsible for overall coordination and implementation.