The Indian government has sanctioned a ₹13,050 crore scheme to incentivize green hydrogen production under the National Green Hydrogen Mission. This initiative, titled “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1)- Tranche-II,” aims to accelerate the development and adoption of clean hydrogen as an alternative fuel source.
The Ministry of New and Renewable Energy (MNRE) has issued guidelines for implementation of SIGHT Program. These guidelines were issued on July 3, 2024.
Key Objectives of the Scheme
- Maximize production of green hydrogen, a clean fuel produced from renewable electricity and water.
- Make green hydrogen cost-competitive compared to traditional fossil fuels.
- Encourage widespread use of green hydrogen and its derivatives across various sectors.
Implementation
The scheme will be implemented from FY 2025-26 to FY 2029-30.
To be eligible for incentives under the scheme, the bidder must ensure Green Hydrogen production in accordance with the detailed criteria laid down in the “National Green Hydrogen Standard” as notified by the Ministry of New and Renewable Energy.
In cases where the end-product is a derivative of Green Hydrogen such as Green Ammonia, the incentive would be made available based on the amount of Green Hydrogen (in kg) utilized to produce the given amount of the derivative.
The following equivalence factor would be applicable for Green Ammonia:
- Derivative – Equivalent amount of Green Hydrogen
- Green Ammonia – 0.1765 kg Green Hydrogen per kg of Green Ammonia
In case of any other derivative, MNRE will declare an equivalence factor based on amount of Green Hydrogen (in kg) utilized to produce the given amount of the derivative.
Moreover, the Solar Energy Corporation of India (SECI) will oversee the scheme’s implementation.
