Scheme Guidelines for Pilot Projects on Use of Green Hydrogen in Transport Sector

Scheme Guidelines for Pilot Projects on Use of Green Hydrogen in Transport Sector


The Government of India has come out with guidelines for undertaking pilot projects for using Green Hydrogen in the transport sector.

GS-02 GS-03(Government policies and intervention, Conservation)


  • With the falling costs of renewable energy, 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.

Key Highlights:

  • The was issued by the ​​Ministry of New & Renewable Energy (MNRE) under the National Green Hydrogen Mission.
  • The scheme will support the development of technologies for the 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 scheme also supports the development of infrastructure such as hydrogen refueling stations.
  • 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 also seek to support any other innovative use of hydrogen for reducing carbon emissions in the transport sector, such as blending methanol/ethanol based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels.
  • Total budgetary outlay for the scheme is Rs. 496 Crores
  • Scheme will be implemented till the financial year 2025-26.

Significance of the scheme :

  • It will lead to the development of necessary infrastructure including refueling facilities and distribution infrastructure, resulting in the 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.

Green hydrogen:

  • Green hydrogen is a clean energy source generated through water electrolysis using renewable energy from wind, solar, and hydro power. It can play a crucial role in transitioning to a carbon-free economy, offering benefits such as zero greenhouse gas emissions.
  • Developing renewable energy sources like green hydrogen enhances energy independence, reducing vulnerability to price shocks and supply disruptions associated with finite fossil fuels.
  • It also fosters job creation in the renewable energy sector, addressing specialized needs in production, storage, and distribution.
  • Green hydrogen can replace fossil fuels in challenging-to-decarbonize sectors, such as heavy industry and aviation, contributing to a reduction in their carbon footprint.