Govt unveils Green Hydrogen Pilot Project guidelines for transport sector

New Delhi: The Central government has unveiled guidelines for supporting pilot projects using Green Hydrogen in the transport sector. “The ‘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… The scheme will be implemented with a total budgetary outlay of Rs. 496 Crores till the financial year 2025-26,” said an official statement on Wednesday.

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“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,” said the statement.

Green Hydrogen: MNRE to support pilot projects through MoRTH

Under the National Green Hydrogen Mission, the MNRE plans to implement pilot projects on a phased basis 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 the Scheme Implementing Agencies (SIAs) nominated by the ministry.

The scheme will have two components. The component A includes development, selection, validation of technologies for use of Green Hydrogen as fuel in bus with fuel cell-based propulsion technology, bus with Internal Combustion Engine-based propulsion technology, truck with fuel cell-based propulsion technology, truck with Internal Combustion Engine-based propulsion technology and four wheelers with fuel cell/Internal Combustion Engine-based propulsion technology. The Component B includes support development of infrastructure such as 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 of methanol, ethanol based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels, said the Ministry of New and Renewable Energy.

How will the scheme be implemented?

The Road Transport and Highways Ministry will appoint a Scheme Implementation Agency (SIA), who along with an executing agency, will identify the routes covering different terrains and climatic conditions across India. The eligible entities for submitting proposals would include Central PSUs, state PSUs, private sector, private corporations and JVs or partnerships of these entities. “Necessary capabilities need to exist within the EAs (executing agencies) for taking forward the completed pilot projects towards commercialisation,” said the scheme document.

“The use of Green Hydrogen in the transport sector, via the proposed pilot projects, will lead to the development of necessary infrastructure including refuelling facilities and distribution infrastructure, resulting in 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 added.

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