Union Government Issues Guidelines for Green Hydrogen Pilot Projects in Transport Sector

• 17 Feb 2024

On 14^th February, the Ministry of New and Renewable Energy (MNRE) released scheme guidelines for implementing pilot projects utilizing green hydrogen in the transport sector.

• The initiative aims to leverage falling costs of renewable energy and electrolyzers to make green hydrogen-powered vehicles cost-competitive.

Key Points

• Introduction of Green Hydrogen in Transport: MNRE plans to replace fossil fuels with green hydrogen and its derivatives through pilot projects under the National Green Hydrogen Mission.
• The projects will be executed by the Ministry of Road Transport and Highways and nominated implementing agencies.
• Technological Development: The scheme supports the development of green hydrogen technologies for buses, trucks, and four-wheelers.
• It employs fuel cell-based or internal combustion engine-based propulsion technology.
• Infrastructure Development: Emphasis will be placed on building infrastructure such as hydrogen refuelling stations to facilitate the use of green hydrogen as a fuel in the transport sector.
• Innovative Applications: MNRE aims to encourage innovative uses of hydrogen, including blending with methanol or ethanol, and other synthetic fuels derived from green hydrogen, to reduce carbon emissions in the transport sector.
• Budgetary Allocation: The scheme has a total budgetary outlay of Rs 496 crore until the financial year 2025-26.
• It highlights the government's commitment to promoting green hydrogen initiatives in transportation.