- India has notified its Green Hydrogen/Green Ammonia policy that aims to produce 5 million tons by 2030
- Renewable energy projects to produce these clean fuels will be provided open access and ISTS charges will be waived for 25 years for those that come online by June 30, 2025
- MNRE will establish a single portal for all clearances required to manufacture, transport, store and distribute these clean fuels, within 30 days
- Green hydrogen/green ammonia manufacturers will be allowed to set up bunkers near ports to store these clean fuels for export with land provided by the port authorities at applicable charges
The Indian government has officially notified the country’s Green Hydrogen/Green Ammonia Policy, aiming for 5 million tons of green hydrogen by 2030, as it eyes the target of 500 GW renewable energy by 2030 and position itself as an export hub for these clean future fuels to replace fossil fuels. It is a step forward towards National Hydrogen Mission, stated the Ministry of Power.
The notification does not elaborate on any electrolyzer capacity or renewable energy capacity targets to realize target. However, last year Power Minister RK Singh had said obligated industries will need 8.8 GW of electrolyzer capacity if they are mandated to source 10% of their requirements through green hydrogen.
In comparison, the European Union (EU) plans to produce 10 million tons green hydrogen by 2030.
Green Hydrogen
Hydrogen is produced by splitting water into hydrogen and oxygen. When this process is powered by a renewable energy source as solar or wind, it is known as green or renewable hydrogen. It is considered to be a game changer for the world to meet its low-carbon ambitions since hydrogen thus produced is aimed to be used by energy intensive industries that currently rely on fossil-fuel based electricity supply. This will help decarbonize the industrial sector, contributing to the overall sustainability initiatives of the world. In comparison, grey hydrogen is produced from gas or methane or coal through steam reforming – and is the common form of production today; black hydrogen is produced through coal power, pink hydrogen through nuclear and blue hydrogen through natural gas with carbon capture.
Indian policy
According to the policy notified by the Ministry of Power, these clean fuels can be manufactured by a developer using renewable energy from a co-located renewable energy plant or sourced from remotely located renewable facilities, or can be procured from the power exchange.
Such renewable energy projects will be granted open access within 15 days of application submission. Land for renewable energy parks for this purpose can be allotted within renewable energy parks.
At the same time, the inter-state transmission system (ISTS) charges will be waived for 25 years for projects commissioned before June 30, 2025.
Manufacturers will be allowed to bank the unconsumed renewable power up to 30 days with the discom.
Government has proposed to set up manufacturing zones in the country where green hydrogen/green ammonia production plants can be established. Manufacturers of these clean fuels will be allowed to set up bunkers near ports to store the clean fuels for export, and the port authorities shall provide such land at applicable charges.
Renewable energy consumed for the production of green hydrogen/green ammonia will be counted towards renewable purchase obligation (RPO) compliance of the consuming entity. Distribution companies or discoms will be able to procure and supply renewable energy to such manufacturers in respective states.
To ease the permitting process and time taken, the Ministry of New and Renewable Energy (MNRE) will establish a single portal for all clearances required to manufacture, transport, store and distribute these clean fuels, within 30 days.
The government may have MNRE aggregate demand from different sectors and have consolidated bids conducted to procure green hydrogen/green ammonia through a designated implementing agency, with a view to achieving competitive prices.
“The implementation of this policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuel and also reduce crude oil imports. The objective also is for our country to emerge as an export Hub for Green Hydrogen and Green Ammonia,” stated the Power Ministry. “The policy promotes Renewable Energy (RE) generation as RE will be the basic ingredient in making green hydrogen. This in turn will help in meeting the international commitments for clean energy.”
Action before policy
Even before the country announced the policy, activity has already started on ground. One of India’s richest men, Mukesh Ambani of Reliance Industries Limited (RIL) has already announced plans to establish a Gigafactory for electrolyzers in Gujarat to produce 400,000 tons of green hydrogen with the help of up to 3.5 GW solar energy capacity (see India PV News Snippets). Another big shot Gautam Adani of Adani Group has also established its green hydrogen and low carbon energy vehicle (see Adani Launches New Energy Business Subsidiary).
In January 2022, Hero Future Energies (HFE) announced a partnership with US based Ohmium International to jointly build 1 GW green hydrogen production facilities in the UK, Europe and India (see 1 GW Green Hydrogen Partnership).
