Govt Unveils Guidelines for Green Hydrogen in Transport Sector
The Ministry of New and Renewable Energy has issued guidelines for a scheme to undertake pilot projects for using green hydrogen in the transport sector with a budgetary outlay of Rs 496 crores till the financial year 2025-2026.
The National Green Hydrogen Mission programme will help to develop technologies for using green hydrogen as a fuel in buses, lorries, and four-wheelers that employ fuel cells or internal combustion engine power. The programme will also fund the construction of infrastructure such as hydrogen refuelling stations.
The ministry, said, “The scheme will provide financial assistance to close the viability gap due to the relatively higher capital cost of hydrogen-powered vehicles and the infrastructure for hydrogen refuelling stations in the initial years. Expenses on account of hydrogen production, land, etc will not be funded under this scheme.”
The Centre announced its ambitious National Green Hydrogen Mission in 2023, to increase green hydrogen production, use, and export. The mission also aims to produce at least 5 million metric tonnes of green hydrogen per year by 2030, as well as deploy 60-100 GW of electrolysers, with a budget of Rs 19,744 crores until 2029-2030.
The government expects green hydrogen cars to become cost-competitive in the coming years as the costs of renewable energy and electrolysers reduce. Future economies of scale and quick technology developments in hydrogen-powered cars are projected to increase the feasibility of green hydrogen-based transportation.
The first phase of the mission included the pilot projects for starting the transition in steel production, long-haul heavy-duty mobility and shipping while working to set up a regulatory framework. The pilot projects are expected to help identify operational issues and gaps in terms of technology readiness and regulations, implementation methodologies, infrastructure and supply chains.
The pilot projects in the transport sector will be implemented through the Ministry of Road Transport and Highways and scheme implementing agencies.
The Green Hydrogen Mission has proposed designating certain routes as hydrogen highways, considering hydrogen’s advantages for heavy-duty, long-haul vehicles. This aims at enabling hydrogen-fueled inter-state buses and commercial vehicles to ply on such routes with necessary green hydrogen production projects, distribution infrastructure and refuelling stations being built along the highways.
A steering committee under the co-chairmanship of the secretary of the Ministry of Road Transport and Highways, and the Ministry of New and Renewable Energy will be responsible for the overall monitoring of the scheme and projects undertaken.
