Green Hydrogen Pilot Projects in India: Transport, Shipping & Steel

New Delhi, Feb 14 (PTI) The government on Wednesday issued scheme guidelines to support pilot projects based on the use of green hydrogen as fuel in buses, trucks and four-wheelers.

The scheme will be implemented with a total budgetary outlay of Rs 496 crore till the financial year 2025-26, a statement by the Ministry of New Renewable Energy said.

The central government has come out with guidelines for undertaking pilot projects for using green hydrogen in the transport sector.

"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, according to the statement.

With the falling costs of renewable energy and electrolysers, 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 scheme implementing agencies (SIAs) nominated under the scheme.

It will support the development of technologies for the use of green hydrogen as a fuel in buses, trucks and four-wheelers, based on fuel cell-based propulsion technology / internal combustion engine-based propulsion technology.

The other thrust area for the scheme is to support the development of infrastructure like 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 methanol/ethanol based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels.

The use of green hydrogen in the transport sector via proposed pilot projects will lead to the development of necessary infrastructure, including refuelling facilities and distribution infrastructure, resulting in the establishment of a green hydrogen ecosystem in the transport sector.

With the expected reduction in the green hydrogen production cost over the years, the utilisation in the transport sector is expected to increase, it stated.

Similarly, the central government has come out with guidelines for undertaking pilot projects for using green hydrogen in the shipping sector.

The guidelines -- named "Scheme Guidelines for Implementation of Pilot Projects for Use of Green Hydrogen in the Shipping Sector" -- were issued by the Ministry of New & Renewable Energy (MNRE) on February 1, 2024, under the National Green Hydrogen Mission.

Under the mission, along with other initiatives, the Ministry of New & Renewable Energy will implement pilot projects in the shipping sector for replacing fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives.

These pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways (MoPSW) and the implementing agencies nominated under the scheme.

Two areas have been identified as thrust areas under the pilot projects. These are retrofitting of existing ships so as to enable them to run on green hydrogen or its derivatives; and the development of bunkering and refuelling facilities in ports on international shipping lanes for fuels based on green hydrogen.

The Scheme will be implemented with a total budgetary outlay of Rs 115 crore till the financial year 2025-26.

The central government has come out with guidelines for undertaking pilot projects for using green hydrogen in the steel sector.

The guidelines, "Scheme Guidelines for Implementation of Pilot Projects for Use of Green Hydrogen in the Steel Sector under the National Green Hydrogen Mission", have been issued by the Ministry of New & Renewable Energy (MNRE) on February 2, 2024.

Under the National Green Hydrogen Mission, along with other initiatives, MNRE will implement pilot projects in the steel sector, for replacing fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives.

These pilot projects will be implemented through the Ministry of Steel and implementing agencies nominated under the scheme.

Three areas have been identified as thrust areas for the pilot projects in the steel sector.

These are -- the use of hydrogen in the Direct Reduced Iron making process, the use of hydrogen in the Blast Furnace, and the substitution of fossil fuels with green hydrogen in a gradual manner.

The scheme will also support pilot projects involving any other innovative use of hydrogen for reducing carbon emissions in iron and steel production.

The guidelines also note that upcoming steel plants should be capable of operating with green hydrogen, thus ensuring that these plants are able to participate in future global low-carbon steel markets.

The scheme will also consider greenfield projects aiming at 100 per cent green steel.

It will be implemented with a total budgetary outlay of Rs 455 crore till FY 2029-30.