Centre Launches INR 100 Cr Scheme To Back Green Hydrogen Startups

Renewable energy minister Pralhad Joshi announced a new INR 100 Cr R&D scheme to back “innovative” green hydrogen startups. 

Addressing the maiden green hydrogen R&D Conference, Joshi launched a call for proposals to support startups in the emerging space. Under the initiative, the government will offer up to INR 5 Cr each for pilot projects in areas such as hydrogen production, storage, transport and utilisation.

“The scheme will provide up to INR 5 Cr per project for pilot projects in innovative hydrogen production, storage, transport and utilisation technologies,” an official statement said. 

Noting that the homegrown green hydrogen ecosystem is moving from vision to action, Joshi said that the broader Nation Green Hydrogen Mission (NGHM) will look to produce 5 Mn metric tonnes of green hydrogen annually in the country by 2030. He also said that the Mission will pave the way for INR 8 Lakh Cr in investments and 6 Lakh new jobs. 

The NGHM was launched in 2023 to make India a global hub for green hydrogen. With an outlay of INR 19,744 Cr, the Mission is built around four pillars – policy, demand creation, R&D and enabling infrastructure. 

Underscoring the steps taken by the ministry to spur the sector, Joshi said that India’s green hydrogen standard and certification scheme has been aligned with over 140 international standards. 

He added that the Centre has sanctioned five new testing facilities, certified more than 5,600 trainees in hydrogen-related qualifications and rolled out waivers such as transmission charge exemptions and streamlined clearances. 

The minister also noted that homegrown startups and other private enterprises are investing heavily in hydrogen, building a robust value chain and creating lakhs of new jobs.

The event also saw 25 startups showcase their innovations in the green hydrogen space, including offerings such as electrolyser manufacturing, AI-driven optimisation in production processes and biological hydrogen solutions.

India’s Green Energy Boom

Green hydrogen has emerged as the north star for India’s clean energy ambitions as the Centre looks to achieve net zero emissions by 2070. While the government has been offering financial support to back these capex-heavy ventures, more and more startups are lining up to solve the green hydrogen production challenges with their tech-led approach. 

While Amara Raja Infra set up India’s first green hydrogen fuelling station in Ladakh for state-run NTPC last year, Peak XV Partners-backed Newtrace has built membrane-less electrolysers to bring down the cost of production. Then, there is h2e Power which claims that its solid oxide fuel cell (SOFC) technology can lower onsite hydrogen production costs significantly. 

Nevertheless, challenges remain. The green hydrogen space is marred by issues such as high capital needs, long gestation periods, high dependency on government tenders and lack of infrastructure for storage and distribution. 

That said, the homegrown green hydrogen market continues to grow at a rapid space and is projected to become a $34 Bn opportunity by 2030.