The Centre on April 29 mandated all green hydrogen producers, except exporters, to undergo a certification process to verify that their hydrogen is produced using renewable energy sources only.
This is significant as under the National Green Hydrogen Mission the government, over the past one year, has bid out green hydrogen production capacities worth 450,000 tonnes, all of which is under construction and expected to be ready in next 3-5 years.
The companies on whom this mandate will be applicable include Reliance Green Hydrogen and Green Chemicals, L&T Energy Green Tech, Waaree Clean Energy Solutions, JSW Neo Energy, Welspun New Energy and ACME Cleantech Solutions, among others.
The mandate, issued under 'Green Hydrogen Certification Scheme of India' (GHCI), has been released by the Ministry of New and Renewable Energy (MNRE) on April 29. Under this, green hydrogen producers will also have to ensure their emission intensity in the production process does not exceed the specified standards.
The certification processes will be carried out by an Accredited Carbon Verification (ACV) Agency listed by the Bureau of Energy Efficiency (BEE). Once India's carbon market is launched in 2026, these certificates will also be tradable in the carbon market.
Talking about the National Green Hydrogen Mission after the certification document was released, Union MNRE Minister Pralhad Joshi said agreements have been signed by several companies to supply a total of 4.12 lakh tonnes of green hydrogen derivatives to Japan and Singapore.
Hydrogen is termed as ‘green’ only when the electricity used to produce it (through electrolysis) is from renewable sources.
On Whom Does This Apply?
The certification is mandatory for all green hydrogen production facilities that are receiving Central or state government incentives or subsidies. Those producing entirely for consumption and even those who partially want to export will have to get the certificate. Besides, producers availing tax exemption from the Centre or the states will also have to under the process.
The scheme has exempted green hydrogen producers with 100 percent export capacity, who do not avail any incentives or concessions from the central or state government, from certification. Such producers will, however, have to report the quantity and emissions of the hydrogen produced in accordance with the standards of the green hydrogen importing country.
It also exempted small green hydrogen producers whose annual production is 10 tons or less, even as they will be able to seek the certification on voluntary basis.
Certification Process
The producers will have to undertake annual verification by an Accredited Carbon Verification (ACV) agency for demonstrating their claim for green hydrogen.
"The producers shall also register on the designated Green Hydrogen Certification Portal (GHCP) and provide necessary information as per the framework to ensure compliance with the certification scheme. ACV Agency shall conduct the verification of green hydrogen produced, in order to evaluate its compliance with the standards and scheme," the document stated.
The ACV agencies shall submit a detailed verification report to the government (through GHCP), pertaining to the emissions calculation, monitoring, reporting and compliance status of the hydrogen producers.
The Centre had launched the National Green Hydrogen Mission on January 4, 2023, aiming to produce 5 million tonnes of green hydrogen annually by 2030, with an initial outlay of Rs 19,744 crore, of which Rs 17,490 crore has been kept as incentives for producing green hydrogen/ammonia and manufacturing electrolysers. Of the Rs 17,490 crore incentive outlay, Rs 13,050 crore is for the production of green hydrogen and its derivatives, while Rs 4,440 crore has been allotted for incentives for electrolyser manufacturing.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
