India’s National Hydrogen Mission: India on a mission possible?

The National Hydrogen Mission reinforces the vision of Hon’ble Prime Minister of India, Shri Narendra Modi towards a sustainably growing, energy secure “Aatmanirbhar Bharat” by harnessing the rich renewable resources of India, Indian talent pool having highly skilled workforce, and India’s expertise in large scale manufacturing of engineered products. The Mission indicates the seriousness of the Government towards achieving the said goals and the allocation of approx. USD2.47 Billion towards the Mission shows the bold intent of the Government. Ample focus is given towards mass manufacturing of electrolysers, research, and innovation which should together help India achieve the ambitious target of 5 MTPA Green Hydrogen production by 2030. The Mission will make use of India’s vast renewable resources in the form of solar and wind to not only cater to domestic demand of clean hydrogen fuel, but also become an exporter of green fuels like hydrogen and ammonia and green commodities based on hydrogen in future. The Mission also specifies a clear governance framework and coordinated approach by several key ministries to ensure smooth financing, project development and offtake of green hydrogen in India. The Mission will be led by Ministry of New and Renewable Energy (MNRE) in close coordination with other key ministries as well like Finance, Road Transport and Highways, Railways, Shipping, Petroleum and Natural Gas, Chemicals and Fertilizers, etc. A holistic approach towards green hydrogen ecosystem development can also be seen through the increased Government focus towards innovation and skill development to cater to the emerging and sustainable jobs in this sector. It is expected that the Mission will clarify some pertinent questions on green hydrogen consumption mandates, taxes, and rollout of financial incentives soon to further smoothen the rollout of the hydrogen ecosystem in India. The NHM sends strong directional signals on the intent of the government to address demand and supply side issues. This also sets high ambitions both for the local market as well as for the export market, although the domestic market by itself is large enough to focus on in the immediate stage. Now with a strong policy setting structure, the eyes are on the empowered group MNRE and various sectoral ministries to see how different elements are detailed and delivered. Amongst the immediate asks from the industry are clear direction on the demand side mandates, incentives allocation and methodology under the SIGHT programme, rationalization of taxes and duties, standards and certifications, financing mechanisms, which can set the wheels in motion for business strategies. On innovation, the Mission will need to go beyond just the R&D funds, to help reduce or remove dependence on critical resources and components, especially those on which there is dominance of a few suppliers globally. Finally, efforts such as aggregation of demand decentralized bidding can go a long way into stimulating the green hydrogen economy of India. Overall, this Mission does indicate a significant leap for India in the right direction towards an economy powered by clean and renewable energy, cater to India’s self-sufficiency and energy security needs and pave the way for a truly “Aatmanirbhar Bharat”.