Government Drives Green Hydrogen Expansion  and Strengthens Clean Energy Transition

**Executive Summary** This report outlines the progress of the National Green Hydrogen Mission (NGHM), which aims to establish India as a global hub for green hydrogen production and export. The Ministry of New and Renewable Energy has awarded significant manufacturing and production capacities, sanctioned industrial pilot projects, and introduced measures to prioritize city gas distribution. Key developments include the discovery of prices for green ammonia and hydrogen supply for the fertilizer and refinery sectors. **Key Points / Main Content** **Green Hydrogen and Electrolyser Production** * **Electrolyser Manufacturing:** Incentives have been awarded to 15 companies for a manufacturing capacity of 3000 MW per annum. * **Production Capacity:** 18 companies have been awarded incentives for the production of 8,62,000 Metric Tonnes per Annum (MTPA) of green hydrogen. **Industrial Demand Aggregation** * **Fertilizer Sector:** Solar Energy Corporation of India (SECI) has discovered prices for 7,24,000 MTPA of green ammonia to supply 13 fertilizer units. * **Refinery Sector:** 20,000 tonnes per annum of capacity has been awarded to IOCL, BPCL, and HPCL; additionally, price discovery has been completed for 10,000 tonnes per annum for Numaligarh Refinery Limited. **Pilot Projects and Transport** * **Steel and Maritime:** Five pilot projects are sanctioned for the steel sector, and a green methanol bunkering facility is being developed at V. O. Chidambaranar Port. * **Mobility:** Five pilot projects will deploy 37 hydrogen-fuelled vehicles and 9 refuelling stations across 10 routes. **Natural Gas and Infrastructure Expansion** * **City Gas Distribution (CGD):** The government is prioritizing domestic gas allocation for CNG and PNG segments and granting Public Utility Status to CGD projects. * **Infrastructure Growth:** Initiatives include the expansion of the National Gas Grid Pipeline, setting up LNG terminals, and the SATAT initiative for Bio-CNG. * **Regulatory Roadmap:** The Petroleum and Natural Gas Regulatory Board (PNGRB) has published a roadmap for hydrogen transportation and blending with natural gas. **Impact Analysis** **Electrolyser Manufacturers and Green Hydrogen Producers** **Impact** These entities are direct beneficiaries of incentive schemes and capacity awards, enabling the scaling of manufacturing and production technologies. **Action Required** Awarded companies must fulfill manufacturing and production quotas; however, the document notes that investment commitments have not yet been made available by project developers. **Fertilizer and Refinery Sectors** **Impact** Thirteen fertilizer units and major refineries (IOCL, BPCL, HPCL, NRL) are transitioning toward green derivatives through established price discovery and supply awards. **Action Required** These sectors must prepare to integrate green ammonia and green hydrogen into their existing industrial processes. **City Gas Distribution (CGD) Companies** **Impact** Stakeholders in this sector benefit from priority domestic gas allocation, Public Utility Status, and infrastructure expansion through the National Gas Grid. **Action Required** CGD entities must align with the new bidding processes for deepwater gas and follow the PNGRB roadmap for hydrogen blending in pipelines. **Transport and Maritime Authorities** **Impact** The V. O. Chidambaranar Port and transport operators on designated routes are positioned as early adopters of hydrogen-based fuels and methanol bunkering. **Action Required** Designated authorities must oversee the deployment of the sanctioned pilot projects, including vehicles and refuelling stations.

Key Entities Referenced