GREEN HYDROGEN/GREEN AMMONIA POLICY

GREEN HYDROGEN/GREEN AMMONIA POLICY

Ministry of Power notifies Green Hydrogen/ Green Ammonia Policy

A Major Policy Enabler by Government for production of Green Hydrogen/ Green Ammonia using Renewable sources of energy

A step forward towards National Hydrogen Mission

Hon’ble Prime Minister launched the National Hydrogen Mission on India’s 75th Independence Day (i.e. 15th August, 2021). The mission aims to help the government meet its climate goals and make India a green hydrogen hub. This will help in meeting the target of producing 5 million tonnes of green hydrogen by 2030 and associated development of renewable energy capacity.

The policy provides as follows :

1--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.

2---Open access will be granted within 15 days of receipt of application.

3----The Green Hydrogen / Ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with distribution company and take it back when required.

-4--Distribution licensees can also procure and supply Renewable Energy to the manufacturers of Green Hydrogen / Green 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 Commission.

5--Waiver of inter-state 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 30th June 2025.

6----The 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.

-7-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.

8---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.

9---Connectivity, at the generation end and the Green Hydrogen / Green Ammonia manufacturing end, to the ISTS for Renewable Energy capacity set up for the purpose of manufacturing Green Hydrogen / Green Ammonia shall be granted on priority.

-10--Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export / use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.

11---With the implementation of this coverage, the widespread folks of the nation will get clear gasoline. This will cut back the dependence on fossil fuels and in addition cut back the import of crude oil. It can be our goal that our nation ought to emerge as an export hub of Green Hydrogen and Green Ammonia.

12--The coverage promotes Renewable Energy (RE) manufacturing as RE would be the fundamental ingredient in making inexperienced hydrogen. This in flip will assist in assembly worldwide commitments for clear power.

What is Green Hydrogen?

Green hydrogen is hydrogen fuel produced by way of the electrolysis of water – an power intensive course of for splitting water into hydrogen and oxygen, utilizing renewable power to acquire it.

The new coverage gives for 25 years of free energy transmission for any new renewable energy plant set as much as provide electrical energy for inexperienced hydrogen manufacturing earlier than July 2025. This signifies that a inexperienced hydrogen producer would be capable of arrange a solar energy plant in Rajasthan to produce it. A inexperienced hydrogen plant in Assam would require renewable power and no inter-state transmission prices. The transfer goes to make it extra economical for main customers of hydrogen and ammonia comparable to oil refining, fertilizer and metal sectors to provide inexperienced hydrogen for their very own use. These fields presently use grey hydrogen or grey ammonia produced utilizing pure fuel or naphtha.

What are incentives?

The authorities is ready to offer a single portal for all clearances required to arrange inexperienced hydrogen era in addition to for producers to financial institution any surplus renewable power generated from discoms for as much as 30 days and put it to use as required. prepared to offer.

Vikram Kirloskar, Chairman of CII Taskforce on Green Hydrogen and Vice Chairman, Toyota Kirloskar, stated, “The need for timely approvals for these projects will spur investments, while priority grid connectivity will ease operational processes.”