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National Green Hydrogen Mission: What Is Green Hydrogen & Why Does It Matter?

India's Union government has approved the National Green Hydrogen Mission as of 4 January 2023.

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Climate Change
2 min read
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Green hydrogen is the latest buzzword in India's climate sector, with the central government approving the National Green Hydrogen Mission last week, budgeted at Rs 19,744 crore.

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What is green hydrogen? It is hydrogen produced either by renewable energy or low-carbon power via the electrolysis of water.

  • Green hydrogen makes up less than 0.01 percent of the total global hydrogen production.

  • It is to be used to decarbonise sectors that are difficult to electrify –such as steel – and aid in mitigating climate change.

  • It is considered the cleanest fuel due to the lack of carbon trail left during production.

Hydrogen codes: Hydrogen is categorised by colours which signify the method of production.

  • Grey hydrogen is the most common category of hydrogen in use. It is produced using natural gas.

  • Brown hydrogen is extracted using coal and a byproduct of this is the emissions from greenhouse gases (GHGs).

  • Blue hydrogen is sourced from GHGs using carbon capture technology.

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India's plan: India's National Green Hydrogen Mission has set targets for the year 2030, the predicted result for which include:

  • Developing the national Green hydrogen production capacity to at least 5 MMT (Million Metric Tonne)

  • Garnering Rs 8 lakh crore in investments

  • Reducing cumulative fossil fuel imports by Rs 1 lakh crore.

  • Reducing annual GHG emissions by approximately 50 MMT

Getting started: India intends to invite bids for subsidies regarding green hydrogen manufacturing sets and utilisation plants by May 2023, according to Reuters.

  • The first green hydrogen plant in India will be set up in Pune.

  • Clean hydrogen will be extracted from biomass and municipal solid waste.

  • The Pune Municipal Corporation has sourced a private firm – The Green Billions Limited (TGBL) – to manage Pune's municipal waste to generate hydrogen for a period of 30 days.

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The global stance: Companies globally have been preparing for the increase in electrolyser production and the development of green hydrogen plants as the world rushes towards rapid decarbonisation.

  • The industry is set up to transition from pilot projects to production at an industrial scale.

  • Global electrolyser production will need to increase 91 times by 2030 to meet global demand, as estimated by BloombergNEF (BNEF).

  • More than 40 percent of electrolysers in use today are produced in China, according to BNEF.

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