Ministry of Power notifies Green Hydrogen/ Green Ammonia Policy

What is the news?

The Ministry of Power has notified the Country’s first Green Hydrogen/ Green Ammonia Policy.

What is Green Hydrogen\Green Ammonia?

Green hydrogen is generated by breaking down water in an electrolyzer. The hydrogen produced can be combined with nitrogen to make ammonia, avoiding hydrocarbons in the production process. 

Green ammonia is used to store energy and in fertilizer manufacturing.India has set a target to produce 5 million tonnes (mt) of green hydrogen by 2030.

What is the aim of Green Hydrogen/ Green Ammonia Policy?

Aim: To reduce fossil fuel usage and increase penetration of Green Hydrogen/ Green Ammonia.

The policy follows the Prime Minister’s announcement about a National Hydrogen Mission.

What are the key features of the Green Hydrogen/ Green Ammonia Policy? 

The policy provides several incentives for manufacturers, consumers of green hydrogen and green ammonia. These include: 

– Manufacturing zones to be set up for green hydrogen/ammonia 

– Demand for green hydrogen from key sectors such as fertilizers, steel and refineries would be aggregated and offered as a mega tender by MNRE.

– Inter-state transmission charges waived for 25 years 

– Open access granted to source renewable energy from anywhere in the country

– manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on a priority basis.

– The benefit of Renewable Purchase Obligation (RPO) will be granted to the hydrogen/ammonia manufacturer 

– Bunkers to be set up near ports for storage of green ammonia for export, use by the shipping industry

Source: This post is based on the following articles:

– “Ministry of Power notifies Green Hydrogen/ Green Ammonia Policy” published in PIB on 18th Feb 2022.

– “Govt unveils hydrogen policy as India takes aim at fossil fuel” published in Livemint on 18th Feb 2022.

– “First Green Hydrogen Policy offers sops to makers and users both” published in Business Standard on 18th Feb 2022.