The Ministry of New and Renewable Energy (MNRE) has released guidelines for establishing green hydrogen hubs as part of the National Green Hydrogen Mission. The MNRE and the designated SCHEME implementing agencies (SIAs) will be responsible for these hydrogen hubs. The initiative will offer assistance for the establishment of essential infrastructure at hydrogen hubs, including storage and transportation facilities, pipeline infrastructure development, refueling stations, as well as technologies for hydrogen compression and liquefaction, among others. The objective of the scheme is to foster the development of regions with significant potential for large-scale hydrogen production at designated hubs. The goal is to maximise the production of green hydrogen and its by-products within the allocated financial framework. This entails enhancing cost competitiveness, promoting integrated development of green hydrogen projects within these hubs to facilitate resource pooling, stimulating extensive utilisation and exports, and bolstering the viability of green hydrogen assets throughout the value chain.
The mission aims to establish a minimum of two green hydrogen hubs by fiscal year 2026. The budget allocation for the scheme is Rs 2 billion until fiscal year 2025-2026. The features of the scheme includes: a hydrogen hub is an area characterised by a network of producers and end-users, complemented by essential infrastructure for storage, processing, and transportation. These hubs may be situated inland or in proximity to ports to facilitate exports. Potential hub locations include regions with clusters of refineries and nearby end-use industries. The hub must possess a minimum capacity of 100,000 metric tonnes per annumn, and preference will be given to hubs with greater production capacity. Furthermore, encouragement will be given to utilise the current infrastructure for hydrogen production, transportation, storage, and utilisation. Moreover, under the PM Gati Shakti initiative, the infrastructure, projects, and resources will be systematically mapped. Additionally, MNRE may designate other locations as green hydrogen hubs, even without financial assistance, to qualify them for various benefits.
An agency appointed by the ministry to oversee the scheme will release a call for proposals for the projects. The entities eligible to submit project proposals encompass central public sector undertakings (PSUs), state PSUs, private enterprises, state corporations, autonomous bodies, joint ventures, partnerships, and consortia comprising these entities. The implementing agency must possess current capabilities to finalise and commercialise the projects. Proposals will be primarily assessed based on planned production capacity, accounting for 50 percent of the evaluation. Additional criteria include technology, applications, and end-use (20 percent), as well as financial commitment (30 percent). The central financial assistance (CFA) for the establishment of these two hubs will be provided up to Rs 1 billion each exclusively for core infrastructure. The CFA will be distributed in three phases: 20 per cent upon the issuance of the administrative approval, 70 per cent based on project milestones, and the remaining 10 per cent upon completion. The SIA is required to complete the project before March 31, 2026.
