India is set to emerge as the centre for green hydrogen production and the country’ renewable energy sector will help make both investors and industries "sure short winners", Prime Minister Narendra Modi has said.
The National Green Hydrogen Mission (NGHM) will help the country in scaling up production and also export, Modi said on February 6 while inaugurating the second edition of India Energy Week 2024 (IEW) in Goa.
Also read: Second edition of India Energy Week to start in Goa on Feb 6; PM to inaugurate
Green hydrogen is generated from electrolysis of water, with the entire process run on renewable energy. It is only considered green when the electricity used for the process comes from sustainable sources like solar or wind power generated on-site.
The NGHM mission received the highest 500 percent hike at Rs 600 crore in the budgetary allocation for the year 2024-25.
Last week, the ministry of new and renewable energy rolled out guidelines for green hydrogen pilots for steel and shipping sectors.
The steel sector programme will look at using hydrogen in direct reduced ironmaking (DRI) processes, blast furnaces, and the substation of fossil fuels with green hydrogen in a “gradual manner.”
The pilot in steel plants can begin by blending a small percentage of green hydrogen in their processes amid higher green hydrogen costs, while upcoming units should be capable of operating with green hydrogen.
India’s green hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW by 2030, according to the targets set by the ministry.
The initiative is expected to avert 50 MMT per annum of CO2 emissions by 2030 and bring over Rs. 8 lakh crore investments.
Also read: Substantial portion of infra capex to be used for energy sector: PM Modi at India Energy Week
"As of now, 40 percent of the installed electricity capacity comes from non-fossil fuel sources," Modi said, adding that the country is looking to achieve net zero emissions target by 2070.
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