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Govt issues guidelines for pilot projects on use of green hydrogen in transport sector

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Press Releases 15 Feb 2024 12:05 PM IST PIB

The Government of India has developed 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, vehicles based on green hydrogen are expected to become cost-competitive over the next few years. Future economies of scale and rapid technological advancements in 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 and 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 the development of technologies for using 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 infrastructure development, 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 the 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 ₹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 the development of necessary infrastructure, including refuelling facilities and distribution infrastructure, resulting in establishing 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 4th January 2023, with an outlay of ₹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 inspire 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.