The Ministry of New & Renewable Energy (MNRE) is implementing the National Green Hydrogen Mission (NGHM) to achieve a production capacity of five million tonnes per annum of Green Hydrogen in the country by 2030.
Under the Mission, MNRE issued scheme guidelines for the implementation of SIGHT (Strategic Interventions for Green Hydrogen Transition) Progamme — an incentive for the production of green hydrogen — Component II.
The guidelines provided an incentive for the Procurement of Green Ammonia Production (under Mode 2A) of the NGHM. Mode 2A caters to the requirements of the fertiliser sector.
As per the guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia. Thereafter, the Solar Energy Corporation of India (SECI) also issued a Request for Selection (RfS) for the selection of Green Ammonia Producers through a cost-based competitive bidding process.
As the implementation of the Mission is gaining traction, the demand of Green Hydrogen and its derivatives from various sectors is also increasing.
In response to the increase in demand for Green Ammonia from the fertiliser sector, MNRE has decided to amend the Scheme Guidelines dated 16 January 2024 by increasing allocation under Mode 2A Scheme for the fertiliser sector by two lakh tonnes per annum i.e. the existing allocation of 5,50,000 tonnes per annum of Green Ammonia has been increased to 7,50,000 tonnes per annum.
This is a significant step towards demand creation of Green Hydrogen and its derivatives in the country.
The National Green Hydrogen Mission was launched on 4 January 2023 with an outlay of Rs 19,744 crores up to FY 2029-30. It will contribute to India’s goal to become Atmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition.
The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.