The National Green Hydrogen Mission targets 5 MMT of annual green hydrogen production by 2030. Examine the SIGHT incentives, the cost competitiveness challenge, and the demand-creation strategy.

Introduction:

The Cabinet approved the National Green Hydrogen Mission on 4 January 2023 with a ₹19,744 crore outlay covering FY24-30; the target is 5 MMT of green hydrogen production annually by 2030, supported by 125 GW of additional renewable capacity. SIGHT — Strategic Interventions for Green Hydrogen Transition — is the financing arm with ₹17,490 crore.

SIGHT incentives:

SIGHT operates two tranches — for electrolyser manufacturing and for green-hydrogen production. The first awarded tranches (2023-24) created an indigenous electrolyser pipeline. The Indian Green Hydrogen Certification, notified in 2024, anchors a domestic standards regime aligned with CBAM-equivalence considerations.

Cost competitiveness challenge:

Green hydrogen costs ~US$5-6/kg compared with grey hydrogen at US$1.5-2/kg from natural gas. The cost gap is driven by electrolyser capital cost, RE LCOE, and water-treatment expenses (~9 kg water per kg H2). SIGHT bridges this through capex-linked support; ALMM-style domestic content rules deepen indigenisation.

Demand creation strategy:

Refineries, fertilisers, and steel are designated anchor demand sectors with phased green-H2 purchase obligations. Pilot programmes cover shipping, heavy mobility (NTPC GH2 bus at Leh), and green-steel routes. Reliance Jamnagar and Adani Kutch gigafactory plans build commercial scale; ONGC Mangalore runs a green-H2 pilot. Hydrogen valley clusters anchor regional offtake ecosystems.

Way forward / Conclusion:

Accelerate the domestic electrolyser PLI, mandate green-H2 purchase obligations on PSUs, integrate the mission with renewable capacity tenders, and finalise certification interoperable with EU CBAM by 2027 under MNRE for export competitiveness.