India's Ambitious Green Hydrogen Mission: Budget Allocation and Milestones
Key Ideas
- The Union Budget for 2025-26 allocates a substantial amount of Rs 600 crore for the National Green Hydrogen Mission, marking a 100% increase from the previous year.
- India aims to become a global hub for green hydrogen production, usage, and export, fostering self-sufficiency through clean energy and inspiring the global clean energy transition.
- The mission targets a significant reduction in hydrogen costs by 2030, with a five-fold increase in demand by 2050, of which 80% is expected to be green hydrogen.
- Key industrial players like Reliance Industries, GAIL, and NTPC are actively engaged, with RIL planning to achieve net-carbon zero status by 2035 through substantial renewable energy investments.
The Union Budget for 2025-26 in India has earmarked a notable sum of Rs 600 crore for the National Green Hydrogen Mission, displaying a noteworthy 100% surge from the previous year's allocation. This initiative is strategically designed to position India as the global epicenter for the production, utilization, and export of green hydrogen and its by-products. The overarching goal is to achieve self-reliance in clean energy, setting a precedent for the worldwide transition towards sustainable energy solutions.
The National Green Hydrogen Mission kickstarted with an initial budget of Rs 19,744 crore, encompassing various components such as the SIGHT program, pilot projects, research and development, and other mission-specific endeavors. By leveraging electrolysis of water using renewable energy sources, particularly electricity, India aims to manufacture green hydrogen with low carbon intensity. The aspiration is to witness a substantial decline of 50% in hydrogen costs by 2030, alongside a projected five-fold surge in demand to 28 million tonnes by 2050, predominantly driven by green hydrogen.
Prominent industry entities like Reliance Industries, GAIL, NTPC, and Indian Oil Corporation have entered the green hydrogen domain, with RIL setting ambitious targets to transform into a net-carbon zero entity by 2035 through a massive investment of nearly Rs 750 billion in renewable energy endeavors. The Ministry of New and Renewable Energy (MNRE) will lead the formulation of guidelines for implementing different mission components, focusing on incentivizing electrolyser manufacturing and green hydrogen production.
The National Green Hydrogen Mission foresees the establishment of a green hydrogen production capacity of at least five million metric tonnes annually by 2030, entailing an associated addition of approximately 125 GW in renewable energy capacity within the country. This monumental undertaking is projected to attract investments exceeding Rs 8 lakh crore and generate over 6 lakh job opportunities by the end of the decade.
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