The Union ministry of power, on February 17, 2022, notified an important policy granting several facilities and concessions to producers of green hydrogen and green ammonia using renewable energy sources.
The policy has the following provisions:
- Green hydrogen/ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other, developer, anywhere
- Open access will be granted within 15 days of receipt of application
- The green hydrogen/ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with distribution company and take it back when required
- Distribution licensees can also procure and supply renewable energy to the manufacturers of green hydrogen/ ammonia in their states at concessional prices which will only include the cost of procurement, wheeling charges and a small margin as determined by the State Electricity Regulatory Commission
- Waiver of interstate transmission charges for a period of 25 years will be allowed to the manufacturers of green hydrogen and green ammonia for the projects commissioned before June 30, 2025
- Manufacturers of green hydrogen/ammonia and the renewable energy plant shall be given connectivity to the grid on priority basis to avoid any procedural delays
- The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/ammonia manufacturer and the Distribution licensee for consumption of renewable power
- To ensure ease of doing business a single portal for carrying out all the activities including statutory clearances in a time bound manner will be set up by MNRE
- Connectivity, at the generation-end and the green hydrogen/ammonia manufacturing end, to the ISTS for renewable energy capacity set up for the purpose of manufacturing green hydrogen /ammonia shall be granted on priority
- Manufacturers of green hydrogen/ammonia shall be allowed to set up bunkers near ports for storage of green ammonia for export or for use by shipping. The land for the storage for this purpose shall be provided by the respective port authorities at applicable charges
The notification of this policy complements and strengthens the National Hydrogen Mission that was launched on August 15, 2021.
Enabler of clean fuel
The implementation of this policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuel and also reduce crude oil imports. The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia, a government statement said.
Promoter of RE
The policy promotes renewable energy (RE) generation as RE will be the basic ingredient in making green hydrogen. This in turn will help in meeting the international commitments for clean energy.
National Hydrogen Mission
It may be recalled that Prime Minister Narendra Modi launched the National Hydrogen Mission on August 15, 2021. The Mission aims to aid the government in meeting its climate targets and making India a green hydrogen hub. This will help in meeting the target of production of 5 million tonnes of Green hydrogen by 2030 and the related development of renewable energy capacity.
Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels. Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia, is one of the major requirements towards environmentally sustainable energy security of the nation. Government of India is taking various measures to facilitate the transition from fossil fuel / fossil fuel based feed stocks to green hydrogen/green ammonia.
Also read: NTPC Awards India’s First Green Hydrogen Microgrid Project
Industry Reactions
“We welcome the historic move by the Government of India and the Ministry of Power to come out with India’s first “Green Hydrogen Policy”. I am certain that this is the right step in the direction of truly mitigating climate risk while achieving the 500 GW Renewable Energy targets by 2030. This will also create long term sustainable jobs along the way while presenting us with a unique opportunity for India to export Green Fuels to other nations. Backed by further and consistent initiatives in this direction, India can well become a net fuel exporter by 2050. This is the foundation of a carbon neutral future for India and I truly thank the Prime Minister for his visionary National Hydrogen Mission which will create a sustainable, strong and Aatmanirbhar Bharat for generations to come.”
—Tulsi Tanti, Chairman and Managing Director, Suzlon Group
“Green hydrogen and green ammonia is the future of our country. Hence the government gave some perks to the manufacturers of these fuels, hence making it easy for them to manufacture these. As they can purchase it from power exchange or set up theirown plant. Also distribution of licensees will be done to encourage such trade to procure and supply renewable energy. Waiver of inter-state transmission charges for a period of 25 years is a welcome step and most motivating one. The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/Ammonia manufacturer. The production of green hydrogen can rely on electricity generated by solar plants, and in a way, this is a boost to the renewable sector.”
—Gautam Mohanka, Managing Director, Gautam Solar Pvt Ltd
