The Government of India’s Union Cabinet and prime minister have approved a “National Green Hydrogen Mission” set forth by the country’s Ministry of New and Renewable Energy.
The government ministry announced the major development on Thursday and aims to become a world leader in the production, usage and export of green hydrogen and its derivatives.
By the year 2030, the ministry says the mission will have enabled the country to attain a domestic hydrogen production capacity of over five million metric tonnes per year. The mission is also expected to create over 600,000 employment opportunities.
The Mission aims to make India a Global Hub for the production, utilization, and export of #GreenHydrogen and its derivatives.@OfficeOfRKSingh @RajKSinghIndia @bhagwantkhuba #NationalGreenHydrogenMission #NGHM #CabinetDecisions pic.twitter.com/Aul2zSfgm0
— Ministry of New and Renewable Energy (MNRE) (@mnreindia) January 4, 2023
The ministry expects that the mission will result in the reduction of 50 million metric tonnes of greenhouse gas emissions by 2030 and approximately US$97 billion in overall investments.
Other foreseen benefits associated with the mission include a reduced dependancy on fossil fuels and a 125 gigawatt renewable energy capacity.
In April last year, the Indian Oil Corporation (NSE: IOC), Larsen & Toubro (NSE: LT) and ReNew Power (NASDAQ: RNW) announced a joint venture in India to help develop the green hydrogen sector there.
“India plans to rapidly march ahead in its decarbonization efforts and production of green hydrogen is key in this endeavour. The IndianOil-L&T-ReNew Joint Venture will focus on developing green hydrogen projects in a time-bound manner to supply green hydrogen at an industrial scale,” said Larsen & Toubro’s CEO SN Subrahmanyan last year.
Indian Oil is a a major oil, gas and petrochemicals corporation; Larsen & Toubro is a construction and engineering conglomerate; and ReNew Power is a renewable energy producer with hydrogen, wind and solar projects.
A recent report published by Vantage Market Research in November predicted that the global green hydrogen market would be worth approximately US$8.7 billion by 2028, ascending from a mere value of US$374 million in 2021.