Strategic Interventions for Green Hydrogen Transition (SIGHT) programme

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Context

• The Union Ministry of New and Renewable Energy (MNRE) has recently published guidelines and incentives to promote the procurement of green hydrogen as part of the National Green Hydrogen Mission.

READ ABOUT NATIONAL GREEN HYDROGEN MISSION: https://www.iasgyan.in/daily-current-affairs/national-hydrogen-mission-45#:~:text=Under%20National%20Hydrogen%20Mission%2C%20India,replace%20fossil%20fuels%20in%20future.

Strategic Interventions for Green Hydrogen Transition (SIGHT) programme

About

• Under the National Green Hydrogen Mission Rs 17,490 crore has been set aside for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.

Aim

• To bolster domestic electrolyser manufacturing and green hydrogen production.
• These incentives are designed to facilitate cost reduction and rapid expansion.

Operational Framework (Mode-2B):

• Implemented under Mode-2B by the Ministry of New and Renewable Energy (MNRE).
• Mode-2B involves aggregating demand and soliciting bids for green hydrogen and its derivatives through a competitive selection process.
• Tranche I of Mode 2B offers a bidding capacity of 200,000 million tonnes per annum.

Execution and Oversight:

• Scheme execution entrusted to agencies nominated by the Union Ministry of Petroleum and Natural Gas (MoPNG), mainly oil and gas companies.
• Centre for High Technology (CHT) guides the oil and gas entities in seeking bids.
• CHT assumes responsibility for secretarial, managerial, and implementation support.

Industrial Adoption:

• Oil companies seek competitive bids for green hydrogen production for single or multiple refineries.
• Green hydrogen's importance highlighted for removing sulfur content in crude oil, contributing to cleaner petrol and diesel.
• Indian Oil Corporation plans to convert 50% of grey hydrogen to green hydrogen by 2030.
• Hindustan Petroleum Corporation reportedly constructing a 370 tonnes per annum green hydrogen plant at its Visakhapatnam refinery.

Qualification for Incentives:

• Bidders must meet criteria outlined in the 'National Green Hydrogen Standard' as notified by MNRE.

Incentive Structure:

• Direct incentives over three years from the beginning of production and supply.
• Rates: Rs 50/kg in the first year, Rs 40/kg in the second year, and Rs 30/kg in the third year.

Bidding Process:

• Bidders quoting the lowest price of supply allocated admissible capacity first.
• Sequential allocation to bidders quoting the next lowest price until the total available capacity is exhausted.

Financial Requirements:

• The net worth of the bidder as specified in the tender document should be equal to or greater than Rs 15 crore per thousand MT per annum of quoted production and supply capacity.

Monitoring and Oversight:

• A scheme monitoring committee co-chaired by MoPNG and MNRE periodically reviews implementation status and performance.
• Recommends measures to address challenges and facilitates coordination among stakeholders.

Challenges and Global Perspective:

• Limited on-the-ground traction for green hydrogen noted in a World Economic Forum report.
• Key players adopting a 'wait-and-watch' approach.
• Cautionary notes from environmental organizations regarding potential land-use and water conflicts in green hydrogen production.

The National Green Hydrogen Mission, through the SIGHT programme, aims to incentivize and accelerate the adoption of green hydrogen in India, aligning with global efforts for sustainable and cleaner energy sources.

Green Hydrogen

• Green hydrogen is a form of hydrogen produced using renewable energy sources, making it an environmentally friendly and sustainable alternative to conventional hydrogen production methods.

Hydrogen Production Methods:

• Conventional Hydrogen: Usually produced through steam methane reforming, a process using natural gas, which emits carbon dioxide.
• Green Hydrogen: Produced using renewable energy sources, such as solar, wind, or hydropower, through the process of electrolysis.

Electrolysis Process:

• Involves passing an electric current through water (H2O) to split it into hydrogen (H2) and oxygen (O2).
• Requires electricity, and when sourced from renewables, the hydrogen produced is considered green.

Advantages of Green Hydrogen:

• Zero Emissions: The production process generates only oxygen as a byproduct, resulting in zero greenhouse gas emissions.
• Renewable Energy Integration: Provides a means to store and utilize excess energy from intermittent renewable sources.
• Versatility: Can be used as a clean fuel for various applications, including transportation, industry, and power generation.

Applications:

• Transportation: Green hydrogen can be used as a fuel for fuel cell vehicles, offering a clean alternative to traditional fuels.
• Industry: It serves as a feedstock for industries like chemical manufacturing and as a clean fuel for industrial processes.
• Power Generation: Can be utilized in fuel cells to generate electricity.

Global Initiatives:

• National Green Hydrogen Mission (India): Aims to promote green hydrogen production and adoption, offering incentives and guidelines for stakeholders.
• European Green Hydrogen Acceleration Center: European Union initiative to boost green hydrogen production, with a target of 40 GW by 2030.
• Green Hydrogen Coalition (USA): Advocates for policies and initiatives to accelerate the development and use of green hydrogen.

Challenges:

• Cost: Currently, green hydrogen production is more expensive compared to conventional methods.
• Infrastructure: Limited infrastructure for hydrogen production, distribution, and storage.
• Scale-up: Large-scale adoption requires significant investment and coordination among stakeholders.

Role in Energy Transition:

• Decarbonization: Green hydrogen is seen as a key element in the transition to a low-carbon or carbon-neutral economy.
• Storage: Offers a solution for storing excess renewable energy and balancing the grid.

Global Context:

• Various countries are investing in research and development to scale up green hydrogen production and reduce costs.
• Collaboration and international partnerships are emerging to accelerate the global transition to green hydrogen.

Understanding green hydrogen is crucial in the context of sustainable development and clean energy transition. It aligns with the goals of reducing carbon emissions and fostering a more sustainable and resilient energy future.