The detailed criteria for the National Green Hydrogen Mission, a programme aimed at increasing the production of green hydrogen in India, has not yet been announced.

Share Market Live

NSE

However, Ministry of New and Renewable Energy Secretary Bhupinder Singh Bhalla recently spoke to CNBC-TV18 about the mission's progress. According to Bhalla, an internal draft of the mission's criteria has been made and will be circulated for stakeholder consultation before the final rollout.

One of the main goals of the National Green Hydrogen Mission is to produce 5 million metric tonnes of green hydrogen per year by 2030. To meet this target, Bhalla stated that India would need to have an electrolyser capacity of 60-100 GW and a renewable energy capacity of 125 GW.

Also read: HPCL says keeping green hydrogen price in check important as refineries major consumers

Grey hydrogen, which is primarily used in the refining and fertilisers industries, will be among the automatic choices for the production of green hydrogen. In addition, the production of green methanol from green hydrogen will be useful for the polymers and chemicals industry.

The Indian government will fund pilot projects for the production of green hydrogen in three sectors: steel, long haul mobility, and shipping. From the learnings from these pilot projects, the government hopes to expand the mission to other sectors in the future.

Bhalla estimates that the production of 5 MMT of green hydrogen will require an investment of around Rs 8 lakh crore, mostly from the private sector.

Bhalla also noted that sectors such as green ammonia are expected to become more popular as the global price of ammonia is much higher than that of green ammonia.

In addition, green ammonia is expected to become increasingly cheaper in the future, even if gas prices decrease. As a result, green ammonia is expected to remain competitive in the market.

Also read: NTPC hopes major green hydrogen mission investment chunk will go towards keeping prices low

First Published:Jan 5, 2023 4:17 PM IST