In a major boost to the National Green Hydrogen Mission, the Union Budget 2025-26 has allocated more than double the previous financial year with an amount of Rs 600 crore as compared to Rs 300 crore. This further strengthens India, targeting to make it a global hydrogen hub to increase the manufacture, use, and export of green hydrogen and its derivatives while also further accelerating the national energy transition towards cleaner sources of energy.
Key Highlights of the National Green Hydrogen Mission
- Beneficial project for which Rs 19,744 crore project has been launched
- The allocation comprises Rs 17,490 crore for the SIGHT scheme, Rs 1,466 crore for pilot schemes, Rs 400 crore for R & D, and Rs 388 crore for others.
- Focuses on at least 5 million metric tonnes (MMT) per annum hydrogen production capacity by 2030 through the development of green hydrogen
- Looks forward to investing over Rs. 8 lakh crore and creating more than 6 lakh jobs through 2030
- Targets to establish around 125 gigawatts of backend renewable capacity.
Green hydrogen can be created using renewable energy to split water into hydrogen, which inherently means its carbon intensity will depend on neutrality in its source of power. Its mission also underscores that hydrogen demand is expected to increase from 6 million tonnes in 2020 to 28 million tonnes in 2050, with 80% of this demand needed to be satisfied by green hydrogen.
Major Players in Green Hydrogen Production
Major industrial players in India that are investing in the hydrogen economy include GAIL, NTPC, Indian Oil Corporation, Larsen Toubro, and Reliance Industries. With these industry giants leading the charge, Reliance Industries is eyeing a net-zero carbon position by 2035 and will invest Rs 75,000 crore in renewable energy.
Government Incentives and Policy Framework
The Ministry of New and Renewable Energy (MNRE) will formulate scheme guidelines for the launch of mission components. Stage one offers two financial incentives worth Rs 17,490 crore over 2029-30:
- Incentives for manufacturing electrolysers.
- Incentives for green hydrogen production.
India is a welcoming environment for firms working to produce green hydrogen, and the government, with its unwavering focus on green hydrogen, will add to a cleaner source of energy on a global level, providing eco-friendly sources of energy and putting India in a major position in the renewable source of energy.
Source: Energyworld, MNRE