India boosts green hydrogen mission with higher green ammonia targets

24 Jun 2024 CW Team

In a significant move to boost the clean energy sector, the Ministry of New & Renewable Energy (MNRE) updated the scheme guidelines for the National Green Hydrogen Mission (NGHM) with the goal of achieving a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030. The revised guidelines will specifically increase the production capacity of Green Ammonia to meet the rising demand in the fertilizer sector.

Initially, under the SIGHT Programme ? Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A), established on January 16, 2024, the capacity set for bidding was 550,000 tonnes per annum of Green Ammonia. However, due to increasing demand, MNRE decided to raise the allocation to 750,000 tonnes per annum. This amendment aligns with the sector's growing needs and supports the broader objectives of the NGHM.

The Solar Energy Corporation of India (SECI) had previously issued a Request for Selection (RfS) for the selection of Green Ammonia Producers through a cost-based competitive bidding process. This process is a cornerstone of the mission's strategy to foster a competitive and efficient market.

The National Green Hydrogen Mission, launched on January 4, 2023, with an investment of Rs 197.44 billion expected through to FY 2029-30, is pivotal to India?s strategy for achieving energy self-reliance. The mission focuses not only on reducing the economy's carbon footprint but also on decreasing dependency on fossil fuel imports, positioning India as a leader in Green Hydrogen technology and markets globally.

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