India bares green hydrogen policy

This will help meet its target to produce five million tonnes of green hydrogen by 2030.

The Indian Government disclosed the policies in line with the National Hydrogen Mission launched last week, which help the country meet its target of producing five million tonnes of green hydrogen by 2030.

In a statement, the India’s Ministry of Power said hydrogen and ammonia were seen to replace fossil fuel and its production using power from renewable energy “is one of the major requirements towards environmentally sustainable energy security.” 

The Mission will also help India meet its climate targets and make the country a green hydrogen hub.

Under the policy, green hydrogen/green ammonia manufacturers will be allowed to purchase renewable power from the exchange or set up renewable energy capacity themselves or through any other developer anywhere. Open access will also be granted within 15 days of receipt of application.

The manufacturers can bank his unconsumed renewable power for up to 30 days with distribution company and take it back when required, and distribution licensees can also procure and supply renewable energy to green hydrogen and ammonia manufacturers 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 also allows waiver of inter-state transmission charges for a period of 25 years to the manufacturers for the projects commissioned before 30 June 2025. The manufacturers and the renewable energy plant will be given connectivity to the grid on priority basis to avoid any procedural delays.

The benefit of Renewable Purchase Obligation will be granted incentive to the hydrogen and ammonia manufacturer and the distribution licensee for consumption of renewable power. A single portal that will carry out activities such as statutory clearances will be set up by the Ministry of New and Renewable Energy to ensure ease of doing business..

Connectivity at the generation end and the green hydrogen and green ammonia manufacturing end, to the interstate transmission system for renewable energy capacity set up for the manufacturing green hydrogen/green ammonia shall be granted on priority.

Manufacturers of green hydrogen/green ammonia shall be allowed to set up bunkers near ports for storage of Green ammonia for export or use by shipping. The respective port authorities will provide the land for storage at applicable charges, the ministry said.

“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,” the power ministry said.