India’s National Green Hydrogen Mission

The National Green Hydrogen Mission was launched by the Government of India to promote green hydrogen production. This initiative aims to position India as a key player in the global green hydrogen market. The mission aligns with India’s goal of achieving net-zero emissions by 2070. It seeks to produce 10 million metric tonnes of green hydrogen annually by 2030. This represents 10% share of the global market.

About Green Hydrogen

Green hydrogen is produced through the electrolysis of water using renewable energy sources. Unlike grey hydrogen, which is derived from fossil fuels, green hydrogen has a minimal carbon footprint. The production process must adhere to strict emission limits set by the Ministry of New & Renewable Energy.

Key Raw Materials

Water and biomass are essential raw materials for green hydrogen production. Sustainable sourcing of these materials is vital. Using agricultural and forestry residues can mitigate waste and pollution. This approach supports a circular economy, enhancing resource efficiency.

Cost Challenges

Producing green hydrogen is currently more expensive than grey hydrogen. The energy required for electrolysis is . However, biomass-based hydrogen production is considered more cost-effective. Establishing backward linkages between farms and production plants can increase farmers’ incomes while reducing emissions.

Budgetary Allocations

The Government of India allocated Rs 600 crore to the National Green Hydrogen Mission for 2025-26. Previous years showed discrepancies between budget estimates and actual spending. Efficient utilisation of funds is crucial for the mission’s success.

Private Sector Participation

Attracting private investments is essential for the mission. However, low returns on investment deter private players. Innovative financing solutions, such as Green Banks, can offer tailored credit schemes to support green projects.

Carbon Markets and International Collaboration

India aims to leverage carbon markets to finance green hydrogen projects. The government has made these projects eligible for carbon trading under the Paris Agreement. Strengthening bilateral partnerships is necessary for successful carbon trading.

Policy Reforms and Technological Innovation

Strategic policy reforms are needed to promote innovation in green technology. Aligning domestic standards with global benchmarks will enhance access to international financing. Collaborative efforts with developed nations can facilitate the achievement of green hydrogen targets.

Future Prospects

The success of the National Green Hydrogen Mission depends on a combination of innovation, investment, and policy reforms. Addressing financial and technical challenges will be crucial for sustainable growth in this sector.

Questions for UPSC:

1. Examine the role of green hydrogen in achieving net-zero emissions by 2070.
2. Discuss the importance of circular economy principles in the production of green hydrogen.
3. What are the challenges faced by India in attracting private investment in green projects? How can they be addressed?
4. Critically discuss the significance of international collaborations in advancing India’s green hydrogen initiatives.

Answer Hints:

1. Examine the role of green hydrogen in achieving net-zero emissions by 2070.

1. Green hydrogen is produced using renewable energy, resulting in minimal carbon emissions.
2. India aims to produce 10 million metric tonnes of green hydrogen annually by 2030, contributing to its net-zero goal.
3. It can replace fossil fuels in various sectors, reducing greenhouse gas emissions.
4. Green hydrogen supports energy diversification and enhances energy security.
5. Investment in green hydrogen technology can drive innovation and create sustainable jobs.

2. Discuss the importance of circular economy principles in the production of green hydrogen.

1. Circular economy principles promote sustainable sourcing of raw materials like water and biomass.
2. Utilizing agricultural residues and organic waste minimizes waste and pollution.
3. It enhances resource efficiency and reduces the carbon footprint of hydrogen production.
4. Establishing a supply chain based on circular economy can mitigate risks associated with raw material availability.
5. Supports farmers’ income by integrating them into the green hydrogen supply chain.

3. What are the challenges faced by India in attracting private investment in green projects? How can they be addressed?

1. Low return on investment deters private sector participation in green projects.
2. High-interest rates and short loan durations from commercial banks create financial barriers.
3. Establishing Green Banks can provide tailored financing solutions for longer-term green projects.
4. Government incentives and policy reforms can enhance the investment climate for private players.
5. Improving transparency and efficiency in fund utilization can build investor confidence.

4. Critically discuss the significance of international collaborations in advancing India’s green hydrogen initiatives.

1. International collaborations can facilitate technology transfer and access to advanced green hydrogen technologies.
2. They can enhance funding opportunities through partnerships with developed nations.
3. Strengthening bilateral partnerships is crucial for effective carbon trading under the Paris Agreement.
4. Collaborations can help align India’s standards with global benchmarks, improving competitiveness.
5. Joint research and development initiatives can accelerate innovation in the green hydrogen sector.