Government issues Scheme Guidelines for Pilot Projects on use of Green Hydrogen in the Transport Sector
Guidelines will support Pilot Projects based on use of Green Hydrogen as fuel
in Buses, Trucks and 4-wheelers
Pilot Projects for development of infrastructure such as hydrogen refuelling
stations to be supported
The Government of India has come out with guidelines for undertaking
pilot projects for using Green Hydrogen in the transport sector. The
“Scheme Guidelines for implementation of Pilot Projects for use of Green
Hydrogen in the Transport Sector”, have been issued by the Ministry of New
& Renewable Energy (MNRE) on February 14, 2024, under the National Green Hydrogen Mission.
With the falling
costs of renewable energy and electrolyzers, it is expected that vehicles based
on green hydrogen can become cost-competitive over the next few years. Future
economies of scale and rapid technological advancements in the field of
vehicles powered by hydrogen are likely to further improve the viability of
transport based on green hydrogen.
Considering this,
under the National Green Hydrogen Mission, along with other initiatives, the
MNRE will implement pilot projects for replacing fossil fuels in the transport
sector with Green Hydrogen and its derivatives. These pilot projects will be
implemented through the Ministry of Road Transport and Highways and the Scheme
Implementing Agencies (SIAs) nominated under this Scheme.
The scheme will
support development of technologies for use of Green Hydrogen as a fuel in
Buses, Trucks and 4-wheelers, based on fuel cell-based propulsion technology /
internal combustion engine-based propulsion technology. The other thrust area
for the scheme is to support development of infrastructure such as hydrogen
refuelling stations.
The scheme will
also seek to support any other innovative use of hydrogen for reducing carbon
emissions in the transport sector, such as blending of methanol / ethanol based
on green hydrogen and other synthetic fuels derived from green hydrogen in
automobile fuels.
The Scheme will be
implemented with a total budgetary outlay of Rs. 496 Crores till the financial
year 2025-26.
The use of Green Hydrogen in the transport sector, via the proposed
pilot projects, will lead to development of necessary infrastructure including
refuelling facilities and distribution infrastructure, resulting in
establishment of a Green Hydrogen ecosystem in the transport sector. With the
expected reduction in the Green Hydrogen production cost over the years, the
utilization in the transport sector is expected to increase.
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 Aatma Nirbhar
(self-reliant) through clean energy and serve as an inspiration for the global
Clean Energy Transition. The Mission will lead to significant decarbonization
of the economy, reduced dependence on fossil fuel imports, and enable India to
assume technology and market leadership in Green Hydrogen.