Union Minister of Power and New and Renewable Energy, Shri R. K. Singh, held a meeting in New Delhi with concerned ministries, green hydrogen developers, and industry associations to discuss the issues faced by developers and explore how the government could assist in overcoming these challenges.
During the meeting, Shri Singh emphasized that the Ministry of Power and the Ministry of New and Renewable Energy would collaborate with other relevant ministries to ensure a conducive business environment for green hydrogen developers. He highlighted India’s potential to produce the cheapest green hydrogen in the world due to its unified power grid and abundant renewable energy capacity. He committed to making India competitive in green hydrogen production and achieving the targets set out in the National Green Hydrogen Mission (NGHM).
The Ministry of New and Renewable Energy made a presentation highlighting key issues. To produce 1 million metric tonnes of hydrogen, 25 GW of renewable power is required, whereas 1 million metric tonnes of green ammonia production necessitates 5 GW of renewable power.
Industry representatives were requested to share information about the locations of their upcoming green hydrogen and ammonia plants and the associated withdrawal capacity requirements. This information will assist in planning the required transmission infrastructure.
During the meeting, industry stakeholders raised several issues they were facing, including matters related to Special Economic Zone (SEZ) policies, regulatory provisions for dual connectivity, certain contractual conditions, demand charges imposed by states, and other cost reduction-related challenges in green hydrogen production. They requested early resolution of these issues to ensure the competitive production and supply of green hydrogen and its derivatives globally.
Shri R. K. Singh assured the industry that the government would address their concerns and take steps to resolve outstanding issues promptly. He emphasized India’s commitment to being a competitive player in the green hydrogen and its derivatives export market. The Minister also stressed that grid security would not be compromised while ensuring competitive green hydrogen production.
The National Green Hydrogen Mission (NGHM) was launched in January 2023 with a total outlay of Rs. 19,744 crores. The mission aims to produce 5 million tonnes of green hydrogen annually by 2030, along with the addition of 125 GW of renewable energy capacity. It is expected to generate 600,000 jobs, reduce 50 million metric tonnes of CO2 emissions annually, and attract investments worth Rs. 8 lakh crore.
