The Ministry of New and Renewable Energy (MNRE) is preparing to seek cabinet approval for a mandate that requires refineries and fertilizer manufacturers to consume green hydrogen. This initiative aims to stimulate demand for green hydrogen in India. This move follows the ministry’s introduction of incentive schemes valued at ₹17,000 crore to promote green hydrogen production and electrolyzer manufacturing. Currently, India has a manufacturing capacity of 5.8 million tons of green hydrogen in various stages of installation, and the favourable cost of renewable energy in India is expected to result in the production of the most competitively priced green hydrogen on a global scale.
As reported by mint, recently, the ministry established standards for green hydrogen produced within the country, specifying that carbon emissions should not exceed two kilograms of carbon dioxide equivalent per kilogram of hydrogen. Earlier this year, the cabinet had approved the National Green Hydrogen Mission, with the goal of annually producing five million tons of green hydrogen to position India as a global hub for green hydrogen production.
In June, the government introduced the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, which allocates ₹13,050 crore to incentivise green hydrogen production and ₹4,440 crore for electrolyser production. As part of this ambitious green hydrogen mission, the government intends to elevate India’s green hydrogen production to five million metric tons annually, accompanied by an increase in renewable energy capacity of approximately 125 GW.
