Union Government Notifies National Hydrogen Policy To Boost Green Hydrogen, Ammonia Manufacturing

The Ministry of Power on 17 February notified Green Hydrogen/ Green Ammonia Policy in a bid to meet India’s climate targets and make India a Green hydrogen hub. The policy takes forward the National Hydrogen Mission which was launched by the Prime Minister on India’s 75th Independence day (i.e. 15 August 2021).

The National Hydrogen Mission aims to facilitate 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.

As part of the policy, 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.

The policy mandates granting Open access within 15 days of receipt of application. The manufacturer of Green Hydrogen / Ammonia can bank his unconsumed renewable power, up to 30 days, with the 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 Commission.

The policy provides for waiving of inter-state transmission charges for a period of 25 years to the manufacturers of Green Hydrogen/ Ammonia for all projects commissioned before 30 June 2025.

Grid connectivity to the manufacturers and the renewable energy plant shall be given on priority basis to avoid any procedural delays, noted the release.

The benefit of Renewable Purchase Obligation (RPO) will be granted as an 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 shall be set up by the Ministry of New and Renewable Energy, the release said.

The manufacturers shall be allowed to set up bunkers near ports for storage of green ammonia for export. The land for the storage for this purpose shall be provided by the respective port authorities at applicable charges, it added.

The implementation of this Policy will facilitate the transition from fossil fuel / fossil fuel based feed stocks to green Hydrogen / green ammonia both as energy carriers and as chemical feedstock for different sectors.