Cabinet gave nod to Green hydrogen plan: Basics Explained

In an ambitious move aimed at improving India’s energy security and helping the country cut carbon dioxide emissions, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an initial outlay of ₹19,744 crore for the National Green Hydrogen Mission up to 2029-30, including incentives to attract investments worth ₹8 lakh crore and create 600,000 direct jobs. The mission is expected to cut around 50 million tonnes of carbon emissions.


Green hydrogen is hydrogen that is produced using renewable energy through electrolysis; uses an electrical current to separate hydrogen from oxygen in the water. If the electricity needed for electrolysis is generated from renewable sources such as solar or wind, the production of hydrogen in this way emits no greenhouse gasses.

Currently, hydrogen is used in petroleum refining, aerospace applications, and the manufacturing of chemicals, steel, and ammonia fertilizers. However, the hydrogen that is in use today is produced using fossil fuels, which are the primary source.

Organic materials such as fossil fuels and biomass are used for releasing hydrogen through chemical processes. The alternative method is to either use electrolysis or renewable energy like solar and wind to split water (H2O) into hydrogen (H2) and oxygen (O2). The latter process is what companies and governments across the world are looking to establish.

According to a Tech Crunch article, one of the key characteristics of hydrogen is that it has long-duration energy-storage capabilities, which
makes it a complement to weather-dependent energies like solar and wind.
Storage is critical to the growth of renewable energy, and the greater use of
hydrogen in renewable-energy storage can drive the cost of both down.

It can decarbonization of many sectors such as the transportation and power industry.

Fuel cells use oxygen from the air and hydrogen to generate electricity. The only emission in this process is non-polluting 
water vapor. In the new era, fuel cells will progressively replace internal
combustion engines, which can power automobiles, trucks, and buses. They can also be used for powering stationary applications powering data centers, telecom towers, emergency generators, and micro grids


NEED OF THE HOUR: Setting up more manufacturing facilities, indigenous production of important components such as electrolyzers, and production linked incentives by the Government.


  • World’s Largest Renewable Energy Expansion Programme
    175 Gw Till 2022
  • Renewable Energy Has A Share Of 26.53%
    In The Total Installed Generation Capacity
    In The Country
  • India now at 4th Global Position for overall
    installed renewable energy capacity
  • The government of India has set targets to reduce
    India’s total projected carbon emission by 1 billion tonnes by 2030,
    reduce the carbon intensity of the nation’s economy by less than
    by the end of the decade, achieve net-zero carbon emissions by
    and expand India’s renewable, at CoP26, energy installed
    capacity to 500 GW by 2030.

As of 31 December 2021, non-fossil-based installed energy capacity to 157.32 GW which is 40.1% of the total installed electricity capacity of 392.01 GW.   The following is
the break up of total installed capacity for Renewables, as of 31 December 2021:

Wind power: 40.08 GW

Solar Power: 49.34 GW

BioPower: 10.61 GW

Small Hydro Power: 4.83 GW

Large Hydro: 46.51 GW/ while its nuclear energy based installed electricity capacity stands at 6.78 GW.


Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): To provide energy and water security, de-dieselise the farm sector and also generate additional income for farmers by producing solar power,

Production Linked Incentive (PLI) Scheme: On 28.04.2021, the Government introduced, Production Linked Incentive Scheme “National Programme on High-Efficiency Solar PV Modules” with an outlay of Rs. 4500 crores to support and promote manufacturing of high-efficiency solar PV modules, including the upstage vertical components like cells, wafers, ingots and polysilicon in India and thus reduce the import dependence in Solar Photo Voltaic (PV) sector.

Solar Parks Scheme: To facilitate large-scale grid-connected solar power projects, a scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” is under
implementation with a target capacity of 40 GW capacity by March 2022. Solar parks provide solar power developers with a plug-and-play model, by  facilitating necessary infrastructure like land, power evacuation facilities, road connectivity, water facility etc. along with all statutory clearances.

15.08.2021, Prime Minister announced the launch of the National Hydrogen Mission and stated the goal to make India a global hub for Green Hydrogen production and export. The draft National Green Hydrogen Mission document is under inter-ministerial consultations.

The Mission proposes a framework for inter alia creating demand for Green Hydrogen in sectors such as petroleum refining and fertilizer production; support for indigenous
manufacturing of critical technologies; Research & Development activities; and an enabling policy and regulatory framework.

  • Issues/Challenges ahead
  • Mobilization of the necessary finance and investment
    on competitive terms:
  • The ongoing efforts for mitigating investment risks,
    and easing approval processes would also need to be strengthened.
  • Land acquisition: Land acquisition is one of the
    major challenges in renewable power development. Identification of land
    with RE potential, its conversion (if needed), clearance from land ceiling
    Act, the decision on land lease rent, clearance from revenue department,
    and other such clearances take time. State governments have to play a
    major role in the acquisition of land for RE projects.
  • RE can only be generated intermittently, and it cannot
    be stored in large quantities;Battery technology cannot store electricity
    at a grid scale.
  • Heavy trucks,exception to electric vehicles,in terms
    of major oil burnt
  • Electric vehicles require large quantities of
    lithium and cobalt that India lacks.
  • While electric cars and two-wheelers get a lot of
    visibility, much of India’s oil is burnt in heavy trucks and Lithium
    batteries are not viable for trucks
  • Integrating larger share of renewables with the
  • Enabling penetration of renewables in the so called
    hard to decarbonize sectors.



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