India’s Green Hydrogen Push: Viability Gap Funding for 3000 MW Electrolyzer Manufacturing

India is making significant strides in its green hydrogen mission by introducing viability gap funding to establish an annual electrolyzer manufacturing capacity of 3000 MW. This bold initiative, announced in Parliament, aims to accelerate the nation's journey toward a sustainable green hydrogen ecosystem.

This development aligns with the launch of the National Green Hydrogen Mission in January 2023, backed by an initial outlay of ₹19,744 crore. The Mission’s ambitious targets include achieving a green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) annually, supported by the addition of approximately 125 GW in renewable energy capacity.

Electrolyser and Green Hydrogen Production Milestones

Minister of State for New & Renewable Energy, Shripad Yesso Naik, highlighted that contracts for the 3000 MW electrolyzer manufacturing capacity are already awarded or in progress. Furthermore, a green hydrogen production capacity of 4,12,000 tons per annum has been secured, underlining India's commitment to a low-carbon future.

The Mission’s objectives extend beyond production, aiming to attract investments worth ₹8 lakh crore, create over six lakh jobs, reduce fossil fuel imports by ₹1 lakh crore, and cut 50 MMT of greenhouse gas emissions annually.

Key Financial Incentives Under SIGHT Programme

The Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), a pivotal component of the Mission, offers two targeted financial incentives:

• Domestic manufacturing of electrolyzers.

• Production of green hydrogen.

  
  

These measures are designed to stimulate demand, support production, and facilitate the utilization and export of green hydrogen.

Advancing Green Hydrogen Hubs and Renewable Energy

To support large-scale adoption, regions with high potential for hydrogen production and utilization will be developed as Green Hydrogen Hubs. Additionally, pilot projects will explore emerging end-use sectors and novel production technologies.

Progress in Renewable Energy Goals

In line with Prime Minister Modi’s pledge at COP26, India is working to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030. As of October 31, 2024, the country has installed 211.40 GW of non-fossil power capacity, demonstrating significant progress toward its renewable energy targets.