The Union Government has approved a Rs 19,744 crore for National Green Hydrogen mission that aims to make India a ‘global hub’ for using, producing and exporting green hydrogen.
As the world intensifies its efforts to combat climate change and transition to a sustainable energy future, green hydrogen has emerged as a game-changing solution. In line with this global trend, India has taken bold steps towards a greener future by launching the National Green Hydrogen Mission. This ambitious initiative aims to harness the potential of green hydrogen and accelerate the country’s transition to a low-carbon economy. In this article, we explore the objectives and significance of the National Green Hydrogen Mission of India, along with the government incentives supporting this transformative endeavor.
What is the National Green Hydrogen Mission of India?
The National Green Hydrogen Mission is a flagship initiative launched by the Indian government to promote the production, adoption, and utilization of green hydrogen as a clean and sustainable energy source. The mission is part of India’s commitment to the Paris Agreement and the United Nations Sustainable Development Goals, emphasizing the country’s determination to reduce carbon emissions and enhance energy security.
The mission’s primary objectives include:
Scaling up Green Hydrogen Production: The mission aims to facilitate the large-scale production of green hydrogen through renewable energy sources, such as solar, wind, and hydroelectric power. By harnessing India’s abundant renewable energy potential, the mission seeks to establish the country as a global leader in green hydrogen production.
Driving Research and Development: To make green hydrogen economically viable, the mission emphasizes research and development to improve electrolysis technology and reduce production costs. Investment in cutting-edge research and innovation will be crucial to unlocking the full potential of green hydrogen in India.
Promoting Green Hydrogen Applications: The mission aims to promote the adoption of green hydrogen across various sectors, including industry, transportation, power generation, and heating. By encouraging the use of green hydrogen in these sectors, the government seeks to drive down emissions and foster sustainable growth.
Creating Infrastructure: The mission recognizes the need for a robust hydrogen infrastructure to support the production, storage, and distribution of green hydrogen. Building the necessary infrastructure will be essential to ensure a smooth transition to a hydrogen-based economy.
Attracting Investments: The mission seeks to attract domestic and foreign investments in the green hydrogen sector. By creating an enabling environment and offering incentives, the government aims to mobilize private sector participation in the development of green hydrogen projects.
Indian Government Incentives for Green Hydrogen:
Recognizing the critical role of incentives in fostering the growth of green hydrogen, the Indian government has introduced several measures to support and promote the sector:
Financial Support: The government offers financial incentives to support research and development projects related to green hydrogen technologies. Funding is also provided to encourage the establishment of pilot projects and demonstration plants.
Green Hydrogen Fund: The government has proposed the creation of a Green Hydrogen Fund to mobilize investments in the sector. The fund will provide financial assistance for setting up green hydrogen projects and infrastructure.
Subsidies and Grants: Various subsidies and grants are made available to promote the deployment of green hydrogen technologies in sectors like transportation, industry, and power generation.
Tax Benefits: The government offers tax incentives to attract private investments in green hydrogen projects. Tax holidays, accelerated depreciation, and exemption from certain taxes are among the benefits provided to eligible projects.
Public-Private Partnerships: The government encourages public-private partnerships to leverage private sector expertise and resources in advancing green hydrogen technologies.
Research and Development Support: The government collaborates with research institutions and industry stakeholders to facilitate research and development in the green hydrogen sector. Funding is provided to support innovative projects and technology development.
