Lok Sabha Question No. 24 (STARRED), answered on 2024-11-27
Subject: Initiatives under National Green Hydrogen Mission
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Smt. Kriti Devi Debbarman, Shri Manish Jaiswal

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## STARRED QUESTION NO. 24

ANSWERED ON 27/11/2024

## INITIATIVES UNDER NATIONAL GREEN HYDROGEN MISSION

## *24. SMT. KRITI DEVI DEBBARMAN SHRI MANISH JAISWAL

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) the specific initiatives undertaken by the Ministry to implement and achieve its goal of making India a global hub for green hydrogen production, its usage and export under the National Green Hydrogen Mission (NGHM);
- (b) the key targets and milestones set under this mission and their expected timelines;
- (c) the financial allocation and investment incentives offered to promote green hydrogen production and related technologies;
- (d) the steps being taken to encourage private sector participation and international collaboration in green hydrogen projects;
- (e) the anticipated environmental and economic benefits, including emission reduction and job creation, resulting from green production and integration into India's energy mix;
- (f) whether any subsidy is provided to the beneficiaries under the said mission and if so, the details thereof along with the amount of funds spent by the Government on this mission so far along with the criteria to avail the benefits thereunder;
- (g) the steps taken/proposed to be taken to enhance/promote the generation of green hydrogen in Punjab and Haryana; and
- (h) whether there is any plan/scheme to set up solar power plant in Narmadapuram, Narsinhpur and Raisen districts and if so, the details thereof?

## ANSWER

THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, & FOOD AND PUBLIC DISTRIBUTION

(SHRI PRALHAD JOSHI)

(a) to (h) A statement is laid on the Table of the House

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## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION No. 24 for ANSWER ON 27/11/2024

(a) to (e)

The Ministry of New and Renewable Energy is implementing the National Green Hydrogen Mission, with an objective to make India a global hub of production, usage and export of Green Hydrogen and its derivatives. This Mission was approved by the Union Cabinet in January 2023 with an overall outlay of Rs. 19,744 crore. The Mission has following components :

- i. Strategic  Interventions  for  Green  Hydrogen  Transition  (SIGHT)  programme,  which includes  incentives  for  manufacturing  of  electrolysers  and  production  of  green hydrogen;
- ii. Pilot  Projects  for  green  steel,  mobility,  shipping,  decentralized  energy  applications, hydrogen production from biomass, hydrogen storage, etc.;
- iii. Development of Green Hydrogen Hubs;
- iv. Support for infrastructure development;
- v. Establishing a robust framework of regulations and standards;
- vi. Research & Development projects;
- vii. Skill development initiatives; and
- viii. Public awareness and outreach activities.

The following schemes have been launched under the Mission till 15 th  November, 2024:

- i. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition  (SIGHT)  Programme  -  Component  I:  Incentive  Scheme  for  Electrolyser Manufacturing' issued on 28 th June 2023. Under this scheme, 8 companies have been allocated 1.5 GW per annum of electrolyser manufacturing capacity.
- ii. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition  (SIGHT)  Programme  -  Component  II:  Incentive  Scheme  for  Green Hydrogen Production (under Mode 1)' issued on 28 th June 2023. Under this scheme, 10 companies have been allocated 4,12,000 Tonnes per annum of Green Hydrogen production capacity.
- iii. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme - Component II: Incentive for Procurement of Green Ammonia Production (under Mode 2A)' issued on 16 th January 2024.
- iv. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme - Component II: Incentive for Procurement of Green Hydrogen production (under Mode 2B)' issued on 16 th January 2024.
- v. Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Shipping Sector issued on 1 st February 2024.
- vi. Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Steel Sector issued on 2 nd February 2024.
- vii. Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Transport Sector issued on 14 th February 2024.
- viii. Scheme Guidelines for the implementation of the Research & Development scheme issued on 15 th March 2024.
- ix. Scheme Guidelines for setting up Hydrogen Hubs in India issued on 15 th March 2024.
- x. Scheme Guidelines for scheme on skilling, up - skilling and re - skilling issued on 16 th March 2024.
- xi. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition  (SIGHT)  Programme  -  Component  I:  Incentive  Scheme  for  Electrolyser Manufacturing  Tranche  -  II'  issued  on  16 th March  2024.  Under  this  scheme,  11 companies have been shortlisted for allocation of 1.5 GW per annum of electrolyser manufacturing capacity on 27 th August 2024.
- xii. Scheme Guidelines for implementation of 'Strategic Interventions for Green Hydrogen Transition  (SIGHT)  Programme  -  Component  II:  Incentive  Scheme  for  Green Hydrogen Production (under Mode 1) - Tranche II' issued on 3 rd July 2024.
- xiii. Scheme  Guidelines  for  funding  of  testing  facilities,  infrastructure,  and  institutional support for development of Standards and Regulatory framework issued on 4 th July 2024.
- xiv. The  draft  scheme  for  Green  Hydrogen  Certification  Scheme  of  India  (GHCI)  was published on MNRE website for stakeholder comments on 4 th  September 2024.
- xv. Scheme  Guidelines  for  implementation  of  Pilot  projects  for  production  and  use  of Green Hydrogen using innovative methods/pathways in the Residential, Commercial, Localized Community, Decentralized/Non-Conventional, applications, including any new  sector  or  technology  not  covered  in  previous  Mission  schemes,  issued  on  8 th November 2024.

Other steps taken for promotion of Green Hydrogen production, include the following:

- i. Green Hydrogen/Green Ammonia Plants commissioned on or before 31.12.2030, and which  utilize  renewable  energy  for  the  production  of  Green  Hydrogen  or  Green Ammonia, have been granted exemption from the payment of ISTS charges for a period of 25 years, starting from the date of commissioning of the project.
- ii. Standalone plants producing Green Hydrogen/Green Ammonia by way of electrolysis of  water  using  Renewable  Energy,  have  been  exempted  from  requirement  of  prior Environmental Clearance under the provisions of the Environment Impact Assessment Notification 2006.
- iii. Duty benefits under Section 26 of SEZ Act, 2005 have been allowed to the units for installation as well as O&M of renewable energy equipment exclusively for captive consumption of the unit.
- iv. Exemption has been granted from ALMM and RLMM requirements for Renewable Energy plants located inside an Special Economic Zone (SEZ) or Export Oriented Unit (EOU) and supplying power exclusively for production plants of Green Hydrogen (or its derivatives), which are located inside an SEZ or set up as an EOU.

The expected outcomes of the Mission, by 2030, are as follows:

- i. India's  Green  Hydrogen  production  capacity  to  reach  approximately  5  MMT  per annum, contributing to reduction in dependence on import of fossil fuels.
- ii. Achievement of Mission targets is expected to reduce a cumulative ₹ 1 lakh crore worth of fossil fuel imports by 2030.
- iii. This Mission is likely to leverage over ₹8 lakh crore total investments and create over 6 lakh jobs.
- iv. Nearly  50  MMT  per  annum  of  CO2  emissions  are  expected  to  be  averted  through production and use of the targeted quantum of Green Hydrogen.

The  Mission  is  also  expected  to  promote  multilateral  engagement  and  collaboration  with various international efforts in Hydrogen and Fuel Cells. The collaboration among Academia, universities, technical institutions, industry and research laboratories is being facilitated under bilateral and multilateral collaboration programmes in the field of Green Hydrogen for resultoriented technology development, knowledge creation and dissemination.

The  Ministry  (either  itself  or  through  National  Institute  of  Solar  Energy)  has  established cooperation frameworks in the field of Hydrogen through Memoranda of Understanding/Letters of Intent/Joint Declarations of Intent with Australia, Finland, France, Germany, Saudi Arabia, the UAE, and Uzbekistan.

In addition to the above, under the Strategic Clean Energy Partnership with United States, an India-US Hydrogen Task Force has been formed. Further, Green/Clean Hydrogen has also been identified  as  a  focus  area  under  the  India-US  New  and  Emerging  Renewable  Energy Technology Action Platform (RETAP). India-Norway Task force on Energy has also identified Green Hydrogen as an area of cooperation.

(f)  The  National  Green  Hydrogen  Mission  includes,  the  Strategic  Interventions  for  Green Hydrogen Transition (SIGHT) Programme, which provides financial support with an outlay of ₹  17,490  crore.  The  programme  consists  of  following  two  distinct  financial  incentive mechanisms:

- 1) Incentive scheme for Green Hydrogen Production:

There  are  two  modes  for  the  implementation  of  the  'Incentive  Scheme  for  Green Hydrogen Production,' which are as follows:

- i. Mode 1: Bidding on least incentive demanded over the three  - year period, through a competitive selection process.
- ii. Mode 2: Aggregation of demand and calling of bids for production and supply of Green Hydrogen and its derivatives at the lowest cost through a competitive selection process.

## 2) Incentive scheme for Electrolyser Manufacturing:

Under this scheme, selection of bidders for award of incentive is dependent on various factors including performance quotient of electrolysers and local value addition.

In  addition,  the  Mission  also  provides  financial  support for  implementing Green Hydrogen based pilot projects in steel production, shipping and road transport sectors.

(g)  The  Mission  does  not  have  any  state  specific  components,  but  aims  to  develop  Green Hydrogen production projects on a pan India basis. It is further informed that:

- i. Punjab Energy Development Agency (PEDA) has framed draft Green Hydrogen Policy for the state of Punjab, which is under consideration and discussions.
- ii. Department  of  New  &  Renewable  Energy,  Government  of  Haryana  has  drafted 'Haryana Green Hydrogen Policy' in January 2024 with production target of 250 kilo tonnes  per  annum  (kTPA)  Green  Hydrogen  by  2030,  electrolyzer  manufacturing capacity  of  2GW  and  associated  components  driving  de-carbonization  across  the industries, enhancing energy security and encouraging exports. Suggestions/ feedback /  comments  /  view  from  General  Public  /  stakeholders  on  Draft  Haryana  Green Hydrogen Policy-2024 have been solicited through public notice and the revised draft of the Policy is under submission to the State Government for consideration.

(h) The Ministry is extending its full support for development of solar projects in all districts through PM-Surya Ghar Muft Bijli Yojana scheme and Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM) scheme.

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