MNRE issues guidelines for pilot projects on use of green hydrogen in transport sector

The pilot projects will be implemented through the Ministry of Road Transport and Highways and the Scheme Implementing Agencies (SIAs) nominated under this scheme

The Ministry of New and Renewable Energy (MNRE) has issued scheme guidelines for pilot projects on the use of green hydrogen in the transport sector. The scheme aims to support pilot projects for the use of green hydrogen as fuel in buses, trucks and cars.

"With the falling costs of renewable energy and electrolyzers, it is expected that vehicles based on green hydrogen can become cost-competitive over the next few years," the ministry said in a statement on February 14.

The pilot projects will be implemented through the Ministry of Road Transport and Highways and the Scheme Implementing Agencies (SIAs) nominated under this scheme.

A budgetary outlay of Rs 496 crore has been allocated for the scheme till the financial year 2025-26. The scheme will support the development of technologies for the use of green hydrogen as a fuel in buses, trucks and 4-wheelers.

The other thrust area for the scheme is to support the development of infrastructure such as hydrogen refuelling stations.

The scheme will also seek to support any other innovative use of hydrogen for reducing carbon emissions in the transport sector, such as blending methanol/ethanol based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels, according to the ministry.

The National Green Hydrogen Mission was launched on 4th January 2023, with an outlay of Rs. 19,744 crores up to FY 2029-30. Earlier this month, NMRE had come out with scheme guidelines for pilot projects in the shipping and steel sector.