Green Hydrogen Production : Rs. 19700 crore Announced in Budget 2023

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Finance Minister Nirmala Sitharaman announced an allocation of INR 19,700 crore for green hydrogen production in the 2023 budget towards the government’s Green Hydrogen Mission.

The Minister also set a target of producing five million tonnes of green hydrogen by 2030. The green hydrogen mission aims at reducing carbon intensity and dependence on fossil fuels. She stated that this investment will be a priority for energy transition and towards the goal of reaching net-zero carbon emissions by 2070.

The Indian government is also expected to establish a dedicated agency to promote and develop the green hydrogen sector. This will help to coordinate efforts across the public and private sector and ensure that the investment is used effectively to boost green hydrogen production.

 

National Green Hydrogen Mission

Green hydrogen is a renewable energy source produced through the electrolysis of water using renewable energy sources such as wind and solar and it is completely carbon-free and can play a crucial role in reducing India’s carbon footprint.

The allocation of 19,000 crore for green hydrogen is a clear signal of India’s commitment to clean energy and reducing its carbon footprint. This investment will help to accelerate green hydrogen production, reduce the cost of production, and promote wider adoption.

The investment in green hydrogen is part of the Indian government’s broader efforts to transition to a low-carbon economy. The government has set an ambitious target of achieving 450 GW of renewable energy capacity by 2030, and green hydrogen will play a critical role in meeting this goal.

Impact of Budget 2023 on Green Hydrogen Production In India:

The Finance Minister stated that the objective is to attain an annual production of 5 MMT green hydrogen by 2030 and that the 2023 budget allocates INR 19,700 crore for green hydrogen production. This investment will help to accelerate the development of green hydrogen technology and promote wider adoption, contributing to a cleaner, more sustainable future for India. Also, initiatives in various economic sectors have been implemented to lower carbon intensity and generate green jobs.

The government is also taking steps to develop a well-trained workforce to support the growth of the hydrogen industry and make sure that necessary technical and professional abilities are readily available.

Hydrogen is a renewable and clean energy source that can be obtained from various sources such as water, natural gas, and biomass. By boosting hydrogen production and use, India can cut back its reliance on fossil fuels, lower greenhouse gas emissions, and help achieve a cleaner and more sustainable future. Hence, the allocation of 19,000 crore for green hydrogen in the 2023 budget is a major step forward for the Indian clean energy sector.

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Accelerating Green Hydrogen Production Through The National Hydrogen Mission:

The National Green Hydrogen Mission in India is a government effort aimed at utilising hydrogen as a clean and renewable energy source. The mission recently received INR 19,700 crore as part of the 2023 national budget to aid the shift towards low-carbon intensity and reduce dependence on fossil fuels.

The goal of the Mission is to increase hydrogen production in India through the promotion of hydrogen production technologies, such as water electrolysis, steam methane reforming, and biomass gasification, and providing financial and technical support to companies and research institutions working on these technologies.

Additionally, the Mission aims to increase the use of hydrogen as a fuel source in transportation, industrial processes, and power generation, reducing greenhouse gas emissions and promoting a cleaner environment. The government is also supporting the development of hydrogen fuel cell technologies for storing and using hydrogen as a clean energy source.

The Mission aims to boost the creation and usage of hydrogen in India by establishing a favourable policy and regulatory framework. This involves providing tax breaks, cutting import taxes, and constructing hydrogen production and distribution infrastructure throughout the nation. The Mission holds great promise in enhancing India’s energy security and promoting sustainable development.

Summary of Budget 2023 Announcements Regarding Green Energy Transition and Green Hydrogen Production:

The Minister of Finance stated that Budget 2023 emphasises a shift towards sustainable growth. The National Hydrogen Mission aims to promote a transition to a low-carbon economy and decrease reliance on imported fossil fuels. An allocation of INR 35,000 crore has been made for prioritising investment towards achieving energy transition and net-zero objectives. Battery energy storage systems will receive viability gap funding. A framework for pump storage projects has been announced.

A transmission system worth INR 20,700 crore will be constructed for the evacuation and grid integration of 13 GW of renewable energy plant in Ladakh. A green credit program under the Environment Protection Act will be implemented to encourage eco-friendly behaviour by individuals and companies.

The finance minister has stated that replacing old, polluting vehicles is a crucial part of greening the economy and adequate funding will be provided to scrap the old vehicles of the central and state governments, as well as ambulances.

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Future of Green Hydrogen in India

The future of green hydrogen in India is promising, with several initiatives underway to promote its use and production. The Indian government has launched several schemes and policies to support the growth of the green hydrogen sector, including the National Hydrogen Energy Mission and the National Hydrogen Energy Fund.

Additionally, the private sector is investing in green hydrogen production, with several companies setting up green hydrogen production plants and investing in R&D to improve the efficiency of the technology. With these efforts, India is well poised to become a major player in the global green hydrogen market and contribute significantly to the transition to a low-carbon energy system.

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We work closely with you to understand your specific needs and provide customised solutions to launch green hydrogen production unit. Our goal is to help entrepreneurs navigate the complexities of starting a green hydrogen production business, enabling them to bring this clean and renewable energy source to market efficiently and cost-effectively.

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