INR 19,744-Crore Incentive Plan Approved By Centre For Green Hydrogen Industry

Prime Minister Narendra Modi-led Cabinet on Wednesday approved INR 19,744 crore incentive plan in order to cut emissions in the country and promote the manufacturing of green hydrogen.

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Carbon-free hydrogen can be used as an energy source in industries such as oil refineries and steel plants. The hydrogen can also be used as fuel in automobiles. It can be produced by splitting water. Green hydrogen is produced when electricity is generated using renewable sources such as the sun is used to split water through electrolysis. The by-product of such a process is oxygen.

India aims to produce 5 million tonnes of green hydrogen per annum in the next five years and the incentives would help bring down the cost.

The ministry of new and renewable energy will formulate the guidelines for the scheme for implementation. The mission of the Centre is to create over six lakh jobs and seek investment of over INR 8 lakh crore.

The plan seeks to promote development of green hydrogen production capacity of at least five MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.

"The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission," information and broadcasting minster Anurag Thakur said while briefing reporters about the Cabinet decisions.

The mission would include a range of benefits -- the creation of export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies, an official statement said.