The Indian Ministry of Power today notified the Green Hydrogen/Green Ammonia Policy, which is being viewed as a key policy facilitator by the government for the development of Green Hydrogen/Green Ammonia utilizing renewable energy sources. This is also a step ahead in the National Hydrogen Mission.
On the occasion of India’s 75th Independence Day, August 15, 2021, Prime Minister Narendra Modi inaugurated the National Hydrogen Mission. The Mission’s goal is to assist the government in attaining its climate goals and turning India into a green hydrogen centre. This will contribute to the goal of producing 5 million tonnes of Green hydrogen by 2030, as well as the growth of renewable energy capacity.
Hydrogen and ammonia are being envisioned as future fuels that will most likely replace fossil fuels. One of the primary prerequisites for the nation’s ecologically sustainable energy security is the production of these fuels using renewable energy, dubbed “green hydrogen” and “green ammonia.”
The government is taking a number of steps to ease the transition from fossil fuels and fossil fuel-based feedstocks to green hydrogen and green ammonia. One of the most important tasks in this endeavour is to notify people about this policy.
The following provisions are included in the policy:
Green Hydrogen / Ammonia producers can buy renewable energy from the power exchange or build renewable energy capacity themselves or through any other developer, wherever.
Following receipt of the application, open access will be given within 15 days.
The Green Hydrogen / Ammonia maker can bank his unutilized renewable energy with the distribution firm for up to 30 days and then take it back when needed.
Distribution licensees can also acquire and deliver Renewable Energy to producers of Green Hydrogen / Green Ammonia in their states at reduced pricing that comprises just the cost of acquisition, wheeling costs, and a modest margin defined by the State Commission.
Manufacturers of Green Hydrogen and Green Ammonia will be able to avoid inter-state transfer fees for a period of 25 years if their projects are completed by June 30th, 2025.
To minimize any administrative delays, producers of Green Hydrogen/Ammonia and renewable energy plants must be provided priority grid access.
The Renewable Purchase Obligation (RPO) will provide incentives to the hydrogen/ammonia maker and the distribution licensee to use renewable power.
MNRE will establish a single gateway to ensure the convenience of doing business by carrying out all processes, including statutory approvals, in a timely manner.
Connectivity to the ISTS for Renewable Energy capacity put up for the purpose of producing Green Hydrogen / Green Ammonia must be given on a first-come-first-served basis, both at the generating and manufacturing ends.
Green Hydrogen / Green Ammonia manufacturers will be permitted to establish bunkers near ports for the storage of Green Ammonia for export/usage by ships. The individual Port Authorities will supply the land for this purpose at the relevant prices.
The execution of this Policy will give clean fuel to the country’s ordinary citizens. This reduces reliance on fossil fuels while simultaneously lowering crude oil imports. The goal is also for our country to become green hydrogen and green ammonia export hub.
The policy encourages the creation of Renewable Energy (RE), which will be the primary component in the production of green hydrogen. As a result, reaching international renewable energy goals will be easier.
