DNA Explainer: What is ‘Green Hydrogen’? From 6 lakh jobs to Rs 8 lakh crore investment, know what Centre plans

India aims to manufacture 5 million tonnes of Green Hydrogen annually for the next five years.


DNA Web Team

Updated: Jan 05, 2023, 11:47 AM IST

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A Rs 19,744 crore National Green Hydrogen incentive plan was approved by the Centre on Wednesday to encourage production of the carbon-free fuel in India. It is expected that the National Green Hydrogen Mission will attract investment to the tune of Rs 8 lakh crore.

As part of the green hydrogen chain, India aims to manufacture 5 million tonnes of the alternative fuel yearly for the next five years. The incentives offered as part of the Green Hydrogen plan are expected to bring the cost of production down. Here’s all you need to know.

What is Green Hydrogen?

Green hydrogen is carbon-free hydrogen. It is seen as an alternative energy source that could help cut emissions. Green hydrogen can be used as a fuel to power vehicles, big industrial units such as steel plants and oil refineries. Green hydrogen is produced by splitting water. It is done by using electricity generated from renewable sources like the sun to split water through electrolysis. The process produces oxygen as the by-product.

The Green Hydrogen Mission

With an initial outlay of Rs 19,744 crore, the Centre has earmarked Rs 17,490 crore for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) programme with Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore for other components of the mission.

The aim is to encourage green hydrogen production to a capacity of at least 5 Million Metric Tonnes per year by 2030. It is expected that the project will attract investments of Rs 8 lakh crore and create over 6 lakh jobs by 2030.

The benefits envisaged include export opportunities, decarbonisation of sectors like mobility, industries and energy, reducing dependence on imported feedstock and fossil fuels, indigenous manufacturing ability enhancement, job creation, R&D for cutting-edge tech. The mission aims to help in creation of demand, production, export and utilisation of green hydrogen. Green

Hydrogen Hub will be created in regions identified under the programme. The Centre is also looking at creation of a public-private partnership framework for R&D under the Strategic Hydrogen Innovation Partnership (SHIP).

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(With inputs from PTI)

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