National Green Hydrogen Mission (NGHM)

Background and Purpose

India’s energy consumption is rising rapidly. In the last 20 years, it has doubled, and by 2030 it may rise by another 25%. Currently, 40% of India’s energy is imported, costing the nation more than $90 billion annually.

At the same time, India has committed to Net Zero emissions by 2070. This means we need to shift towards clean, renewable, and self-reliant energy sources.

👉 Enter the National Green Hydrogen Mission (NGHM), launched in 2023-24 as a Central Sector Scheme.
Purpose in one line: To make India a Global Hub for production, use, and export of Green Hydrogen and its derivatives.

Tenure and Target

• Tenure: FY 2023-24 to FY 2029-30
• Target:
  • 5 million metric tonnes (MMT) of Green Hydrogen per year by 2030
  • Expandable up to 10 MMT with exports

Objectives

1. Achieve Aatmanirbharta (self-reliance) in clean energy.
2. Decarbonise key sectors of the economy like steel, shipping, mobility, fertilizers.
3. Reduce dependence on fossil fuel imports.
4. Position India as a technology and market leader in the emerging global Green Hydrogen sector.
5. Contribute to global Clean Energy Transition.

What is Green Hydrogen?

• Hydrogen is the most abundant element but is not freely available; it must be produced.
• Green Hydrogen is produced through electrolysis of water, where water is split into hydrogen and oxygen using renewable energy like solar or wind.
• Unlike “Grey” or “Blue” hydrogen, Green Hydrogen has zero carbon emissions.

Mission Phases

Phase I (2022–26)

• Focus on creating demand for Green Hydrogen.
• Expand domestic electrolyser manufacturing capacity (electrolyser = device for splitting water).
• Enable adequate supply.

Phase II (2026–30)

• Move towards commercial-scale deployment.
• Use Green Hydrogen in steel, mobility, and shipping sectors.
• Develop export capability.

Strategy: 3 Key Components

1. Demand Creation

• Export markets → capture global demand.
• Import substitution → replace fossil fuels & fertilizers.
• Domestic demand → across multiple sectors.

2. Incentivising Supply

• Financial incentives for:
  • Electrolyser manufacturing
  • Green Hydrogen production

3. Key Enablers

• Resources → finance, renewable energy, transmission, water, land.
• Infrastructure & Supply Chain → ports, refuelling stations, hydrogen hubs, pipelines.
• R&D → time-bound, PPP model, grand challenges.
• Ease of Doing Business → simpler taxation, SEZ, commercial clearances.
• Regulations & Standards → safety, certification, testing facilities.
• Skill Development & Public Awareness → training programs, online portal.

Institutional Mechanism

• Nodal Ministry: Ministry of New & Renewable Energy (MNRE) → overall coordination.
• Other Key Ministries:
  • Ministry of Power → ensures low-cost renewable energy.
  • MoPNG (Petroleum & Natural Gas) → promote GH₂ in refineries & city gas.
  • Ministry of Chemicals & Fertilizers → promote green ammonia fertilizers.
  • Others: Steel, Shipping, Transport, Finance, Railways, Commerce, Skill Development, External Affairs.

Governance Framework

• Empowered Group (EG) → chaired by Cabinet Secretary.
• National Green Hydrogen Advisory Group → experts from academia & research, chaired by Principal Scientific Advisor.

About SIGHT programme:

• It is a sub component under the National Green Hydrogen Mission.
• Aim of the programme:
  • Component I: It aims at providing electrolyzer manufacturing incentives with a total outlay of INR 4440 crore
  • Component II: It focuses on green hydrogen production with financial outlay of INR 13050 crore. 
• Implementing agency: The Solar Energy Corporation of India (SECI) would be the implementing agency responsible for the scheme’s execution.

Key facts about National Green Hydrogen Mission

• It was launched in 2022, with the goal of making India energy independent and decarbonising major sectors of the economy.
• Benefits of this mission
  • India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW.  
  • The targets by 2030 are likely to bring in over Rs. 8 lakh crore investments.
  • Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.

Significance

• Reduces crude oil and LNG import bill.
• Helps India meet climate commitments.
• Opens up a new export-oriented industry.
• Creates jobs in electrolyser manufacturing, hydrogen hubs, refuelling infra.
• Strengthens India’s global leadership in clean energy transition.

✅ In summary: NGHM is not just an energy scheme, it is India’s strategic roadmap to become the Saudi Arabia of Green Hydrogen — securing energy independence, boosting exports, and contributing to global climate goals.