NEWS – Government Enhances Allocation for Fertilizer Sector under SIGHT Programme of the National Green Hydrogen Mission (NGHM)

HIGHLIGHTS

Increased Allocation

• New Allocation: Increased from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum of Green Ammonia.

National Green Hydrogen Mission (NGHM)

• Objective: Achieve production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
• Launch Date: 4th January 2023.
• Financial Outlay: Rs. 19,744 crores up to FY 2029-30.

SIGHT Programme

• Component of NGHM: Focuses on incentivizing Green Hydrogen and Green Ammonia production.
• Components:
  • Component I: Incentives for electrolyzer manufacturing with an outlay of INR 4,440 crore.
  • Component II: Incentives for Green Hydrogen production with a financial outlay of INR 13,050 crore.

Implementation

• Implementing Agency: Solar Energy Corporation of India (SECI).
• Initial Allocation: 5,50,000 tonnes per annum of Green Ammonia under Mode 2A for the fertilizer sector.
• Updated Allocation: Increased to 7,50,000 tonnes per annum.

Demand and Amendments

• Increased Demand: Growing demand for Green Ammonia from the fertilizer sector.
• Amendment: MNRE increased the allocation under Mode 2A Scheme for the fertilizer sector by 2 lakh tonnes per annum.

Benefits of National Green Hydrogen Mission

• Decarbonization: Significant reduction in CO2 emissions.
• Energy Independence: Reduced dependence on fossil fuel imports.
• Economic Impact: Expected to bring in over Rs. 8 lakh crore investments by 2030.
• Renewable Energy Capacity: Addition of about 125 GW associated with Green Hydrogen production.
• CO2 Emissions Reduction: Nearly 50 MMT per annum expected to be averted by 2030.

Green Hydrogen

• Definition: Hydrogen produced by splitting water into hydrogen and oxygen using an electrolyzer powered by renewable energy sources.