Government Releases New Funding Guidelines for Green Hydrogen Testing Facilities

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Aimed at establishing standards and a regulatory framework as part of the National Green Hydrogen Mission, the Ministry of New and Renewable Energy (MNRE) has introduced guidelines for funding of testing facilities, infrastructure, and institutional support. The programme, with a total outlay of Rs 2 billion, will be operational until 2026. It aims to assess gaps in current testing facilities for components, technologies, and processes within the green hydrogen value chain. Additionally, it seeks to establish new testing infrastructure to validate, certify, and test components, technologies, and processes essential to the green hydrogen value chain.

The programme will upgrade existing testing facilities provided by testing agencies to ensure the safe and reliable operation of equipment and instruments used throughout the green hydrogen value chain. It aims to foster collaboration between private and government entities to establish advanced testing facilities in India. It also promotes the creation of specialised centers of excellence that cater to diverse testing requirements on an individualised basis. The testing facilities will assist in projects related to testing and certification infrastructure, with the National Institute of Solar Energy serving as the Programme Implementation Agency (PIA).

The MNRE will fund the testing facilities as follows: covering equipment, installation, and commissioning costs, which includes up to 100 per cent of the capital expenses for government entities and up to 70 per cent for non-government entities. Furthermore, as sanctioned by the Project Appraisal Committee (PAC), up to 15 per cent of the overall financial assistance can be allocated for operational expenses during the four years following project completion. The grants will be distributed in three phases: 20 per cent upon selection, 70 per cent based on achieving milestones, and the remaining 10 per cent upon project completion. The MNRE may conduct project visits and verifications before releasing each installment. The MNRE will disburse funds to the PIA based on recommendations from the PAC.

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