National Green Hydrogen mission

The Union Cabinet approved a Rs.19,744 crore National Green Hydrogen mission that aims to make India a ‘global hub’ for using, producing and exporting green hydrogen.

Background

• The National Hydrogen Mission was launched on Independence Day in 2021.
• The Union Cabinet has now approved the mission with a total initial outlay of Rs 19,744 crore.

What is green hydrogen?

• Produced through electrolysis-Green hydrogen is when hydrogen is produced via electrolysis, the splitting of water into hydrogen and oxygen with electricity generated from renewable energy sources such as solar or wind.
• Usage-Hydrogen is a key industrial fuel that has a variety of applications including the production of ammonia (a key fertilizer), steel, refineries and electricity.

Why Green Hydrogen?

• Green hydrogen is one of the cleanest sources of energy with close to zero emission.
• It can be used in fuel cells for cars or in energy-guzzling industries like fertilizers and steel manufacturing.

What is the National Green Hydrogen Mission?

• The intent of the mission is to incentivize the commercial production of green hydrogen and make India a net exporter of the fuel.
• Target: The Mission states that India will develop green hydrogen production capacity of at least 5 million tonnes (MT) per annum with an associated renewable energy capacity addition of about 125 gigawatts (GW) in the country by 2030.

Impacts

• Employment generation: This will entail over Rs 8 lakh crore of total investments and is expected to generate six lakh jobs.
• Toll on imports and GHG: It will also lead to a cumulative reduction in fossil fuel imports by over Rs 1 lakh crore and an abatement of nearly 50 MT of annual greenhouse gas emissions.
• Others: decarbonisation of the industrial, mobility and energy sectors; developing indigenous manufacturing capabilities; and developing new technologies such as efficient fuel cells.