Centre Unveils Guidelines for Green Hydrogen Pilot Projects in Transport Sector

New Delhi: In a significant move towards promoting clean and sustainable energy, the Ministry of New & Renewable Energy (MNRE) has released guidelines for the implementation of pilot projects utilizing Green Hydrogen in the transport sector. The “Scheme Guidelines for implementation of Pilot Projects for use of Green Hydrogen in the Transport Sector” were issued on February 14, 2024, under the ambit of the National Green Hydrogen Mission.

As the costs of renewable energy and electrolyzers continue to decline, there is a growing anticipation that vehicles powered by green hydrogen will become cost-competitive in the coming years. The National Green Hydrogen Mission aims to harness the potential of green hydrogen in the transport sector through pilot projects, capitalizing on future economies of scale and rapid technological advancements.

Under this mission, the MNRE, in collaboration with the Ministry of Road Transport and Highways and Scheme Implementing Agencies (SIAs), will spearhead pilot projects aimed at replacing fossil fuels in the transport sector with Green Hydrogen and its derivatives.

The scheme will support the development of technologies for using Green Hydrogen as a fuel in buses, trucks, and 4-wheelers, leveraging both fuel cell-based propulsion technology and internal combustion engine-based propulsion technology. Infrastructure development, particularly the establishment of hydrogen refueling stations, will be a key focus area of the scheme.

In addition to conventional applications, the scheme encourages innovative uses of hydrogen to reduce carbon emissions in the transport sector. This includes the blending of methanol, ethanol, and other synthetic fuels derived from green hydrogen in automobile fuels.

With a total budgetary outlay of Rs. 496 Crores until the financial year 2025-26, the scheme aims to foster a Green Hydrogen ecosystem in the transport sector. The pilot projects are expected to drive the development of essential infrastructure, including refueling facilities and distribution networks, thereby contributing to the reduction of Green Hydrogen production costs over time.

The National Green Hydrogen Mission, launched on January 4, 2023, with a substantial outlay of Rs. 19,744 crores up to FY 2029-30, aligns with India’s commitment to becoming Aatma Nirbhar (self-reliant) through clean energy. The mission is poised to lead the decarbonization of the economy, diminish reliance on fossil fuel imports, and position India as a global leader in Green Hydrogen technology and market advancements.