MNRE launches scheme to incentivise production of green hydrogen

• The Union Ministry of New and Renewable Energy (MNRE) in India has unveiled guidelines and incentives under the National Green Hydrogen Mission to promote green hydrogen procurement.
• Under the mission, Rs 17,490 crore has been set aside for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.

The Strategic Interventions for Green Hydrogen Transition (SIGHT) Program

• Objective: To boost domestic electrolyser manufacturing and green hydrogen production.
• The incentives are designed to facilitate cost reduction and rapid expansion.
  • Green hydrogen is crucial for removing sulphur content in crude oil to produce petrol and diesel.
• Implemented under Mode-2B, the scheme involves aggregating demand and soliciting bids for green hydrogen through a competitive selection process.

Oil and Gas Entities' Role

• The execution of the scheme will be entrusted to agencies nominated by the Union Ministry of Petroleum and Natural Gas, primarily oil and gas companies.
• Oil and gas entities, guided by the Centre for High Technology (CHT), will seek competitive bids for green hydrogen.
  • To qualify for incentives, bidders must meet the criteria outlined in the 'National Green Hydrogen Standard.'
• CHT will provide secretarial, managerial, and implementation support.

Monitoring and Review

• A scheme monitoring committee, co-chaired by the secretaries of MoPNG and MNRE, will periodically review the implementation and performance of capacities awarded.
• The committee will also recommend measures to address challenges.

Prelims Takeaway

• SIGHT Program
• National Green Hydrogen Mission
• Green Hydrogen