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Scheme Guidelines for pilot projects on use of green hydrogen in the transport sector

The Government of India has come out with guidelines for undertaking pilot projects for 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.

With the falling costs of renewable energy and electrolyzers, 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.

Considering this, under the National Green Hydrogen Mission, along with other initiatives, the MNRE will implement pilot projects 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 under this Scheme.

The scheme will support development of technologies for use of Green Hydrogen as a fuel in Buses, Trucks and 4-wheelers, based on fuel cell-based propulsion technology / internal combustion engine-based propulsion technology. The other thrust area for the scheme is to 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.

The Scheme will be implemented with a total budgetary outlay of Rs. 496 Crores till the financial year 2025-26.

The use of Green Hydrogen in the transport sector, via the proposed pilot projects, will lead to 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 utilization in the transport sector is expected to increase.