India's Ministry of New and Renewable Energy (MNRE) is embarking on a $7.8 million funding initiative for four green hydrogen projects under the National Green Hydrogen Mission's central financial assistance (CFA) scheme. The initiative aims to accelerate deployment of green hydrogen as a clean energy source.

Project Funding Distribution

The four funded projects are located in areas designated as Hydrogen Valley Innovation Clusters (HVICs), where hydrogen is used across various sectors and actively promoted as a sustainable energy source. A project in Pune being developed by the National Chemical Laboratory (CSIR-NCL) will receive USD 2 million, representing the largest single allocation.

In Kerala, a project spearheaded by clean energy research organisation ANERT will be allocated USD 2.4 million. Two additional projects led by the Indian Institutes of Technology will receive funding, with USD 1.7 million going to a project in Bubaneswar and USD 1.6 million allocated to a project in Jodhpur.

Administrative Framework and Guidelines

According to recently released guidelines for setting up HVICs and green hydrogen hubs in India, the Department of Science and Technology will issue the letter of award and approval once MNRE provides clearance. The CFA will be disbursed to the company set up by each cluster as per the recommendations of the Project Appraisal Committee.

MNRE released its USD 48.12 million R&D roadmap for the National Green Hydrogen Mission in July 2023, which targets commercialisation of green hydrogen. Since then, the country has rolled out a number of green hydrogen initiatives and schemes to build out both its in-country and export infrastructure.

Renewable Energy Capacity Targets

Speaking at the release of India's Budget 2025, Union Minister of New and Renewable Energy Prahlad Joshi stated, "Very shortly we are going to reach 75GW [of renewable energy capacity] and in two or three years I'm quite confident that we will reach 100GW."

In April, India launched its Green Hydrogen Certification Scheme, which defines what qualifies as 'green' hydrogen, introduces a multi-tiered certification system, and sets a maximum lifecycle emissions threshold of 2kg carbon dioxide equivalent per kg of hydrogen.

Broader National Investment Strategy

The certification scheme forms part of India's broader official green hydrogen push, backed by an initial outlay of USD 2.37 billion. Of this total investment, USD 2.1 billion is earmarked for government subsidies for green hydrogen production and incentives to boost domestic manufacturing of electrolysers. The remainder will go towards pilot projects, R&D and other unspecified mission components.

India is targeting 5 million metric tonnes of green hydrogen per year from 2030. The current funding announcement represents part of the country's systematic approach to developing green hydrogen infrastructure and capabilities across multiple research institutions and geographic regions.

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