Finance Minister Nirmala Sitharaman said in her budget speech on February 1 that the recently launched Rs 19,700 crore National Green Hydrogen Mission would facilitate the economy’s transition to low carbon intensity and reduce the impact of Dependence on fossil fuel imports.

“We aim to achieve an annual production of 5 MMT by 2030. The budget provides a capital investment of Rs 35,000 crore for the Ministry of Oil and Gas’ energy transition and net zero goals and energy security,” FM said.

The Green Hydrogen Mission states that by 2030, India will develop a green hydrogen production capacity of at least 5 million tonnes (MT) per annum, with associated renewable capacity additions of around 125 gigawatts (GW).

This will require a total investment of more than Rs 8 lakh crore and is expected to reduce cumulative fossil fuel imports by more than Rs 1 lakh crore and reduce greenhouse gas emissions by nearly 50 metric tons per year.

About Rs 17,490 crore of the Rs 19,744 crore spending announced by India on January 4 will be used to incentivise the production of green hydrogen and the manufacture of electrolysers.