National Green Hydrogen Mission

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Demand Creation

The most important measure currently proposed is to mandate blending quotas of green hydrogen for conventional hydrogen producers and consumers. International demand and exports from India are being supported through important green hydrogen partnership agreements with the European Union, Germany, Denmark, Japan and other countries.

  • Export Markets
  • It is expected that a major portion of demand is expected to come from exports. Accordingly, the Mission will facilitate export opportunities through supportive policies and strategic partnerships.
  • Considering the renewable energy potential and the enabling framework proposed under the Mission, India’s Green Hydrogen production costs are expected to be among the lowest in the world. A global demand of over 100 MMT of Green Hydrogen and its derivatives like Green Ammonia is expected to emerge by 2030. Many countries are likely to rely on imports due to constraints on land and renewable resources required to produce Green Hydrogen domestically. Aiming at about 10 per cent of the global market, India can potentially export about 10 MMT Green Hydrogen/Green Ammonia per annum.
  • The enabling framework created under the Mission and support for hydrogen hubs and port infrastructure will facilitate the development of a vibrant export market. Growth in export market will have a positive cascading effect on the domestic production as well. The Mission will facilitate development of strategic international partnerships to enable export of Green Hydrogen and its derivative products.
  • Substituting Imports
  • The Mission proposals are aligned with the spirit and objectives of Aatmanirbhar Bharat. The key goal of the Mission is to replace imported fossil fuels and fossil fuel-based feedstocks with domestically sourced Green Hydrogen and its derivatives. Achievement of Mission targets is expected to contribute to India’s energy security and reduce a cumulative ₹1 lakh crore worth of fossil fuel imports by 2030. The Mission will also encourage domestic manufacturing of electrolysers and other equipment with an aim to indigenize the entire value chain within a definite timeframe.
  • Domestic Demand
  • About 5 MMT Grey Hydrogen is consumed annually in India, and about 99 percent of this quantity is utilized in petroleum refining and manufacture of Ammonia for fertilizers. In fertilizer production, Hydrogen is a key input for production of Ammonia (NH3), which is used to produce urea and other fertilizers. In petroleum refining, Hydrogen is mainly used for reducing sulphur content of fuels (desulphurization), and conversion of heavier feedstocks to more valuable products (hydrocracking). In both sectors, Grey Hydrogen can be substituted with Green Hydrogen, reducing carbon footprint and dependence on imported fossil fuels.
  • In order to create bulk demand and scale up production of Green Hydrogen, the Government of India will specify a minimum share of consumption of green hydrogen or its derivative products such as green ammonia, green methanol etc. by designated consumers as energy or feedstock. The year wise trajectory of such minimum share of consumption will be decided by the Empowered Group constituted, taking into account the availability of resources for Green Hydrogen production, relative costs, and other economic factors.
  • Competitive Bidding for Procurement
  • In early years of technology deployment, it is essential to aggregate demand through an enabling framework of bidding and procurement processes for achieving scale and stability in long term agreements. In this regard, MNRE will frame model guidelines for transparent competitive bidding for procurement of Green Hydrogen and its derivatives. A suitable regulatory framework for certification of Green Hydrogen and its derivatives as having been produced from RE sources, will also be developed. The bidding guidelines will be technology agnostic to allow both electrolysis and biomass-based generation of Green Hydrogen.