Power ministry notifies green hydrogen policy

Fuel tank of a Hydrogen powered car (Representative image)

The Ministry of Power on February 17 notified the green hydrogen policy, also referred to as the green ammonia policy, that was announced by Prime Minister Narendra Modi during his Independence Day address last year.

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 power ministry said in a press release.

"Open access will be granted within 15 days of receipt of application," it said, adding that the green hydrogen/ammonia 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 the manufacturers of green hydrogen/green 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", it noted.

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The policy also provides a "waiver of inter-state transmission charges for a period of 25 years" to the manufacturers of green hydrogen and green ammonia for the projects commissioned before June 30, 2025.

They shall be given "connectivity to the grid on priority basis" to avoid any procedural delays, the power minister added.

The benefit of Renewable Purchase Obligation (RPO) will be granted as incentive to the hydrogen/ammonia manufacturer and the distribution licensee for consumption of renewable power, it further said.

To ensure ease of doing business, a single portal for carrying out all the activities including statutory clearances in a time bound manner will be set up by the Ministry of New and Renewable Energy, the government said.

"Connectivity, at the generation end and the green hydrogen/green ammonia manufacturing-end, to the ISTS for Renewable Energy capacity set up for the purpose of manufacturing green hydrogen/green ammonia shall be granted on priority," the statement noted.

The manufacturers will 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.

Modi, while addressing the nation on August 15, 2021, had announced that the green hydrogen policy would be rolled out across the nation. The policy is part of the mission to cut down India's greenhouse gas emissions. It is aimed towards meeting the "climate targets and making India a green hydrogen hub", the government said.

"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," it added.