(GIST OF KURUKSHETRA) India: A Green Hydrogen Global Hub

(GIST OF KURUKSHETRA) India: A Green Hydrogen Global Hub


India: A Green Hydrogen Global Hub


  • The Union Cabinet on 4th January 2023 approved the National Green Hydrogen Mission with an initial outlay for the mission is Rs.19,744 crore. 
  • The mission seeks to promote development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030. 
  • Indian Oil Corporation aims to replace at least a tenth of its current fossil-fuel-based hydrogen at its refineries with carbon-free green hydrogen. 
  • In the long run, it envisages an investment of over Rs. 8 lakh crore and creation of over 6 lakh jobs by 2030.
  • The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation. 
  • The Mission will also help India export high-value green products making it one of the first major economies to industrialise without the need to ‘carbonise’. 
  • India’s distinct advantage in terms of low-cost renewable electricity, complemented by rapidly falling electrolyser prices, can enable green hydrogen to be not just economical compared to fossil-fuel based hydrogen but also compared to the green hydrogen being produced around the globe.

Key highlights:

  • In 2020, India’s hydrogen demand stood at 6 million tonnes (MT) per year and it is estimated that by 2030, the hydrogen costs will be down by 50 per cent. The demand for hydrogen is expected to see a five-fold jump to 28 MT by 2050 where 80 per cent of the demand is expected to be green in nature. 
  • Top industry leaders such as Reliance Industries Limited (RIL), Gas Authority of India Limited (GAIL), National Thermal Power Corporation (NTPC), Indian Oil Corporation (IOC) and Larsen and Toubro (L&T) plan to foray into the green hydrogen space.
  • RIL plans to become a net-carbon zero firm by 2035 and invest nearly INR 750 billion over the next three years in RE.
  • Various hydrogen powered vehicles have been developed and demonstrated under projects supported by the Government of India. 
  • Government policy in India is also extremely supportive of new investments in the hydrogen ecosystem and recently Indian enterprises can satisfy their renewable purchase obligations (RPOs) by purchasing green hydrogen. 
  • Indian Oil is at the forefront of the green hydrogen revolution. It is planning to set up India’s first green hydrogen unit for the Mathura refinery, which will be used to process crude oil.
  • Indian Oil Corporation aims to replace at least a tenth of its current fossil-fuel-based hydrogen at its refineries with carbon-free green hydrogen. 
  • India has declared its ambition to become an exporter of hydrogen to Japan, South Korea, and Europe.
  • In India, the production cost of green hydrogen is around Rs. 500 per kg. The government expects to reduce the cost of manufacturing green hydrogen by 40-50 per cent through its policy initiatives.

Way forward:

  • The Asia-Pacific region is the fastest growing area in the green hydrogen market. India has set a target of an annual production capacity of 25 million tonnes by 2047. The number could well be revised upwards as the technology evolves and the demand outlook improves.
  • India today is in the process of finalising a roadmap for becoming a green hydrogen economy which would require Rs. 15 trillion and another Rs. 15 trillion to meet the middle-term goal by 2030. So, in all, these initiatives would require an investment of Rs. 30 trillion by 2030.



Study Material for UPSC General Studies Pre Cum Mains

Get The Gist 1 Year Subscription Online

Click Here to Download More Free Sample Material

<<Go Back To Main Page

Courtesy: Kurukshetra