National Green Hydrogen Mission (NGHM)

Why in the News?

The Ministry of New and Renewable Energy (MNRE) has unveiled Scheme Guidelines to enhance testing facilities, infrastructure, and regulatory frameworks under the National Green Hydrogen Mission. This initiative is part of India's strategy to boost the green hydrogen sector.

Key Features of the Guidelines:

• Budgetary Outlay:
• Total Allocation: ₹200 Crore allocated for the scheme until FY 2025-26.
• Objective: The funding aims to address gaps in existing testing facilities related to components, technologies, and processes in the green hydrogen value chain.
• Implementation Agency:
• National Institute of Solar Energy (NISE): Designated as the Scheme Implementation Agency (SIA).
• Implementation Methodology:
• Identification of Test Facilities: NISE will identify and establish the necessary testing facilities.
• Call for Proposals (CfP): NISE will issue CfPs in consultation with MNRE for setting up these facilities.
• Evaluation Process: Proposals will be assessed by a Project Appraisal Committee (PAC).
• Sanctioning: The PAC will recommend selected proposals to MNRE for issuing sanctions.
• Award Issuance: The SIA will issue a Letter of Award to the Executing Agency (EA).
• Funding and Disbursement:
• Government Entities: MNRE will fund up to 100% of the capital cost for government entities.
• Non-Government Entities: Details regarding funding for non-government entities would typically involve co-funding or partial funding, though specifics are not outlined in this summary.

Objectives and Impact:

• Development of Standards and Regulations: The mission aims to support the development of robust standards and regulatory frameworks for green hydrogen, ensuring safety, efficiency, and consistency in the industry.
• Strengthening Infrastructure: By improving testing facilities, the mission seeks to enhance the capability for evaluating new technologies and components critical to green hydrogen production and utilization.
• Facilitation of Innovation: Establishing comprehensive testing facilities is expected to spur innovation and growth in the green hydrogen sector, contributing to India's transition to a sustainable energy economy.

Significance:

• Green Hydrogen's Role: Green hydrogen is considered a key component in achieving decarbonization goals. It can serve as a clean fuel for various applications, including transportation, industry, and power generation.
• Strategic Importance: The National Green Hydrogen Mission aligns with India's broader climate goals and energy strategy, supporting the country’s commitment to reducing greenhouse gas emissions and promoting renewable energy.

Green Hydrogen (GH2)

Definition: Green Hydrogen refers to hydrogen produced through environmentally friendly methods, primarily:

• Electrolysis: This process splits water molecules (H₂O) into hydrogen (H₂) and oxygen (O₂) using electricity generated from renewable energy sources like solar, wind, and hydro power.
• Biomass Gasification: This involves converting biomass into hydrogen through a high-temperature process.

Applications:

• Fuel Cell Electric Vehicles (FCEVs): For cleaner transportation options.
• Aviation and Maritime: To reduce emissions in these sectors.
• Industry: Includes use in fertilizers, refineries, and steel production.
• Transport: Applied in road, rail, and shipping sectors.
• Power Generation: As a potential alternative to conventional fuels.

Key Features:

• Economic Viability: Currently, the cost of green hydrogen production ranges from $4.10 to $7 per kg, which is higher compared to grey or brown hydrogen. The goal is to reduce this to $1 per kg by 2030.
• Storage Challenges: Hydrogen requires high-pressure tanks or cryogenic temperatures for storage due to its low density and boiling point.
• Resource Requirements: Producing green hydrogen can require up to 9 liters of water per kilogram of hydrogen.
• Skill Development: A workforce of approximately 283,000 will be needed for roles in design, planning, installation, and production.

National Green Hydrogen Mission (NGHM)

Launch and Duration:

• Launched: 2023
• Total Outlay: ₹19,744 crore
• Phases:
• Phase I: 2022-23 to 2025-26
• Phase II: 2026-27 to 2029-30

Objective: To establish India as a global hub for the production, use, and export of green hydrogen and its derivatives.

Key Components:

• Demand Creation: Encouraging both domestic and international demand for green hydrogen.
• Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme: Includes incentives for the manufacturing of electrolysers and green hydrogen production.
• Pilot Projects: Focus on various applications such as steel production, mobility, shipping, and hydrogen production from biomass.
• Green Hydrogen Hubs: Development of hubs at major ports like Deendayal (Kandla, Gujarat), Paradip (Odisha), and V.O. Chidambaranar (Tuticorin, Tamil Nadu).
• Regulations and Standards: Establishing a framework of regulations and standards for green hydrogen.
• Research and Development (R&D): Investing in R&D to advance green hydrogen technologies.

Initial Steps Taken:

• GAIL Limited: Started India’s first project blending hydrogen in the City Gas Distribution grid in Indore (Madhya Pradesh).
• NTPC Limited: Initiated blending green hydrogen up to 8% in PNG Network at NTPC Surat (Gujarat) and launched hydrogen-based FCEV buses in Greater Noida and Leh.
• Oil India Limited: Developed a 60-kW hydrogen fuel cell bus, combining electric and fuel cell technologies.

Challenges in Green Hydrogen Adoption:

• Economic Viability: High production costs compared to other hydrogen types.
• Storage Difficulties: Hydrogen requires high-pressure or cryogenic storage.
• Skill Shortage: Need for a skilled workforce in hydrogen production.
• Resource Scarcity: High water usage for hydrogen production.
• Lack of Global Standards: Varying regulations for hydrogen definitions, transportation, storage, and safety.

Hydrogen is categorized into several types based on its production methods and associated carbon emissions. These categories include:

1. Grey Hydrogen

• Production Method: Produced from natural gas or methane through steam methane reforming (SMR) or auto-thermal reforming (ATR).
• Carbon Emissions: High; CO₂ is a byproduct of the production process and is typically released into the atmosphere.
• Current Usage: Predominantly used in industrial applications, such as ammonia production and refining.

2. Blue Hydrogen

• Production Method: Similar to grey hydrogen, produced from natural gas via steam methane reforming or auto-thermal reforming.
• Carbon Emissions: Reduced compared to grey hydrogen. The CO₂ produced is captured and stored (carbon capture and storage, CCS) or used in other processes, preventing it from entering the atmosphere.
• Current Usage: Used in various industrial applications, with a focus on reducing the carbon footprint of hydrogen production.

3. Green Hydrogen

• Production Method: Produced through electrolysis of water using electricity generated from renewable energy sources like solar, wind, or hydro power.
• Carbon Emissions: None; the process is clean and does not release CO₂.
• Current Usage: Emerging as a key player in sustainable energy solutions, used in transportation, industrial processes, and power generation.

4. Turquoise Hydrogen

• Production Method: Produced through methane pyrolysis, where methane is split into hydrogen and solid carbon without producing CO₂.
• Carbon Emissions: Low; CO₂ is not produced, but there are challenges related to the handling and utilization of the solid carbon byproduct.
• Current Usage: Still in the developmental stage, with potential applications in various industries.

5. Brown/Black Hydrogen

• Production Method: Produced from coal through a process called coal gasification.
• Carbon Emissions: High; significant CO₂ emissions result from the process.
• Current Usage: Largely used in regions where coal is abundant, but efforts are underway to phase it out due to its environmental impact.

6. Yellow Hydrogen

• Production Method: Produced using electrolysis powered by electricity from the grid, which may include a mix of renewable and non-renewable sources.
• Carbon Emissions: Varies; depends on the carbon intensity of the electricity used.
• Current Usage: Less distinct in terms of environmental benefits compared to green hydrogen, due to the mixed energy sources.

7. Pink Hydrogen

• Production Method: Produced via electrolysis using nuclear energy.
• Carbon Emissions: Low; the carbon footprint is minimal due to the use of nuclear power.
• Current Usage: Niche, but potentially significant for regions with abundant nuclear energy infrastructure.

8. White Hydrogen

• Production Method: Natural hydrogen found in geological formations, also known as native hydrogen.
• Carbon Emissions: None; the hydrogen is naturally occurring and not associated with industrial processes.
• Current Usage: Currently not widely exploited but has potential as a source of clean hydrogen if commercial extraction methods are developed.

Way Forward:

• Cost Reduction: Aim to reduce green hydrogen production costs to $1 per kg by 2030.
• Incentives: Develop necessary incentives for emerging applications of green hydrogen.
• Investment in R&D: Invest $1 billion in R&D by 2030 to advance technologies and explore alternatives like bio-hydrogen.
• Green Hydrogen Standards and Labelling: Implement a digital labelling and tracing mechanism for certification of origin.
• Inter-Ministerial Governance Structure: Create an interdisciplinary Project Management Unit (PMU) with experts to oversee mission implementation.