Green hydrogen mission meet: Govt to seek funds for next-gen tech research

In the first meeting of the empowered group for the National Green Hydrogen Mission (NGHM) on May 5, the Ministry of Heavy Industries (MHI) plans to propose a detailed strategy to seek funds for the next-generation technology research by Bharat Heavy Electricals (BHEL), Business Standard has learnt.

The ministry will put forward the proposal to seek funds from the proposed Rs 1,866 crore under the pilot projects and research and development (R&D) head for the current fiscal year (FY24).

“We are targeting funds from the NGHM to meet our demand for the next-gen tech like electrolyzers and fuel stack,” senior government officials said, adding, “These funds will help BHEL take the lead in the development of world-class green hydrogen technology.”

The initial outlay for the mission, cleared by the Union Cabinet in January, will be Rs 19,744 crore, including an outlay of Rs 17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other mission components. 

In order to develop Electrolyser Systems for Hydrogen Production, BHEL has invited expression of interest (EoI) for partnerships.

Initial outlay

• Rs 19,744 cr is initial amount for the project
• Rs 17,490 cr for the SIGHT programme
• Rs 1,466 cr for pilot projects
• Rs 400 cr for R&D
• Rs 388 cr towards other mission components

As the green hydrogen market is still in its nascent stage and its demand is not yet sufficient to justify significant investments, the funds will help alleviate the financial burden on the BHEL.

Cabinet Secretary Rajeev Gauba will chair the empowered group meeting. The group also comprises Principal Scientific Adviser to the government Ajay Kumar Sood, NITI Aayog Chief Executive Officer B V R Subrahmanyam, and secretaries from different ministries — renewable energy, power, fertilizer, oil, road, steel, and heavy industries, among others.

Apart from reviewing and discussing the way forward for the mission, the agenda also includes deliberations over the requirement of an obligation for the fuel’s use in various sectors.

The first phase of the plan will lay the foundation for future energy transitions in hard-to-abate sectors by creating the required R&D impetus. According to the NGHM draft plan published in January, the R&D programme under the mission seeks to develop globally competitive technologies in various segments.

An effort will be made to aggregate and leverage existing capabilities and infrastructure during this (first) phase. Likely projects under this mode will include the “development of domestic modular electrolyzers, Type III/Type IV compressed hydrogen tanks, and polymer electrolyte membrane (PEM)-based fuel cells”, with an intent to increase operational efficiencies, the NGHM notification reads.

Biomass-based hydrogen generation will also be scaled up for commercial applications.

Though the ministry is sending its proposal to develop electrolyzers and other next-gen techs, how much funding it can get will be determined only after the advisory group’s recommendation to the empowered group.

“We are aiming to get the maximum amount of funds as we are already working on almost all the tech required for the mission,” said another official.

The green hydrogen advisory group comprises experts from academic and research institutions, industry, and civil society, which is chaired by the Principal Scientific Advisor to the government.

The group advises the empowered panel on all science and technology-related matters pertaining to the mission. It carries a technology gap analysis for various aspects of the value chain and accordingly defines broad performance and cost targets based on global benchmarking.

It also assists the empowered group in formulating targeted calls for proposals for pilot and R&D projects and evaluating proposals for financial support.

The new and renewable energy ministry will formulate the scheme guidelines for the implementation of the respective components.