Indian power ministry notifies new green hydrogen policy

Hydrogen and ammonia are envisaged to be the future fuels to replace fossil fuels. Indian Prime Minister Narendra Modi had launched the National Hydrogen Mission on August 15 last year 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, according to an official release.

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

According to 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. Open access will be granted within 15 days of receipt of application.

The 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 such manufacturers in their states at concessional prices that will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission.

Such manufacturers and the renewable energy plant shall be given connectivity to the grid on priority basis to avoid any procedural delays.

Such manufacturers will be allowed to set up bunkers near ports for storage of green ammonia for export or use by shipping. The land for the storage for this purpose shall be provided by the respective port authorities at applicable charges.

The implementation of this policy will provide clean fuel, reduce dependence on fossil fuel and reduce crude oil imports.