Government Issues Guidelines for Green Hydrogen Use in Transport Sector, Allocates Rs 496 Cr

The Government of India has announced the initiation of pilot projects aimed at integrating green hydrogen into the country’s transport sector. The Ministry of New & Renewable Energy (MNRE) unveiled the ‘Scheme Guidelines for implementation of Pilot Projects for use of Green Hydrogen in the Transport Sector’, as part of the National Green Hydrogen Mission.

With renewable energy costs plummeting and advancements in electrolyzer technology, green hydrogen-powered vehicles are anticipated to become cost-competitive in the coming years. These pilot projects, facilitated by the MNRE in collaboration with the Ministry of Road Transport and Highways, will explore the feasibility of replacing fossil fuels with green hydrogen and its derivatives in buses, trucks, and 4-wheelers.

The scheme, with a budgetary outlay of Rs. 496 Crores until the financial year 2025-26, will focus on developing technologies for fuel cell-based and internal combustion engine-based propulsion systems. Additionally, it aims to bolster infrastructure development such as hydrogen refuelling stations, crucial for establishing a robust green hydrogen ecosystem in the transport sector.

Under the National Green Hydrogen Mission, launched in January 2023 with an outlay of Rs. 19,744 crores up to FY 2029-30, India seeks to attain self-reliance in clean energy while significantly reducing carbon emissions. By embracing green hydrogen, India aims to diminish its reliance on fossil fuel imports, positioning itself as a leader in clean energy technology on the global stage.

Furthermore, the scheme will encourage innovative uses of hydrogen, including blending with methanol, ethanol, and other synthetic fuels derived from green hydrogen to further reduce carbon emissions in the transport sector.

The implementation of these pilot projects is expected to pave the way for the widespread adoption of green hydrogen in transportation, fostering the development of essential infrastructure and driving down production costs over time. This initiative aligns with India’s commitment to transitioning towards a sustainable and environmentally friendly energy landscape.

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