June4 , 2026

    Centre allocates ₹100 crore for biomass-to-hydrogen pilot projects to curb fossil fuel imports

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    India has earmarked ₹100 crore for new pilot projects using biomass to produce green hydrogen, Union minister for New and Renewable Energy Prahlad Joshi said on Tuesday, adding that the initiative is part of efforts to cut ₹1 lakh crore worth of fossil fuel imports through the National Green Hydrogen Mission (NGHM).

    Announcing the plan at the 3rd International Conference on Green Hydrogen in New Delhi, Joshi said the call for proposals will be released shortly by BIRAC (Biotechnology Industry Research Assistance Council) and will focus on innovative technologies that utilise biomass or waste material to generate green hydrogen.

    “A total allocation of ₹100 crore has been earmarked for these pilots, supplementing the ₹100 crore previously allocated for start-up projects under NGHM,” Joshi said.

    The minister said India aims to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030, supported by an overall outlay of ₹19,744 crore and an investment of ₹8 lakh crore-plus. The mission aims to create over 6 lakh green jobs and reduce annual CO₂ emissions by 50 million tonnes.

    Under the SIGHT (Strategic Interventions for Green Hydrogen Transition) programme, incentives have been awarded for 3,000 MW per annum of electrolyser manufacturing capacity and 8.62 lakh MTPA of green hydrogen production. India now has the lowest global price for green ammonia, at ₹49.75 per kg, for the production and supply of 7.24 lakh MTPA.

    Other initiatives include an investment of ₹132 crore in five pilot projects for the steel sector, support for 37 hydrogen-fuelled vehicles and nine refuelling stations worth ₹208 crore, and ₹35 crore sanctioned for India’s first hydrogen bunkering and refuelling facility at V.O. Chidambaranar Port.

    Launching the National Green Hydrogen Mission logo, Joshi said it was selected from over 2,500 entries received nationwide. “The NGHM logo is more than just a symbol. It is the people’s logo, born from the shared spirit, creativity, and unity that fuel this mission,” he said.

    Highlighting India’s progress in renewable energy, the minister said the country has reached 50 per cent of its installed electricity capacity from nonfossil fuel sources, five years ahead of its 2030 target. He said India’s non-fossil capacity has grown from 81 GW to 260 GW, solar from 2.8 GW to 130 GW, and wind from 21 GW to 53.6 GW, with savings of ₹4 lakh crore ($46 billion) in fossil fuel and pollution costs in 2024, as per IRENA.

    Joshi added that India’s renewable energy expansion includes a record solar-plus-storage tariff of ₹2.70 per unit in Madhya Pradesh and a ₹7,453 crore viability gap funding for the offshore wind sector.

    He said India has launched a National Single Window Portal for green hydrogen and electrolyser manufacturing, with Gujarat, Kerala, and Rajasthan onboarded, and waived ISTS charges for projects commissioned before December 2030. Green hydrogen and ammonia plants have also been exempted from environmental clearance, with Kandla, Paradip, and Tuticorin identified as dedicated hubs.

    Joshi said the Green Hydrogen Standard was notified in August 2023, followed by the Certification Scheme in April 2025. So far, 23 R&D projects worth ₹115 crore have been funded, five testing facilities worth ₹114 crore have been established, and 128 national standards have been published for safety and interoperability.

    He said, “When we produce green hydrogen, reduce emissions, and develop affordable technologies, we do it for the global family.”

    The minister affirmed that India aims to capture 10 per cent of global hydrogen demand by 2050 and become a major exporter of green hydrogen and its derivatives.

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