National Green Hydrogen Policy

Why in the News?

Recently, the Ministry of Power has notified the country’s first green hydrogen and ammonia policy.

Probable Question

Discuss the importance of green hydrogen policy on India’s energy security.

Background

• The government of India has launched the National Hydrogen Mission on India’s 75th Independence Day (i.e., 15th August 2021). 
• The Mission aims to aid the government in meeting its climate targets and making India a green hydrogen hub. 
• Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels. 
• Production of these fuels by using power from renewable energy is termed as green hydrogen and green ammonia.
• It is one of the major requirements towards environmentally sustainable energy security of the nation. 
• Government of India has taken various measures to facilitate the transition from fossil fuel / fossil fuel-based feed stocks to green hydrogen / green ammonia. 
• The notification of this policy is one of the major steps in this endeavour.

Key Highlights of Green Hydrogen and Ammonia Policy

• Aim: The policy aimed at boosting the domestic production of green hydrogen to 5 million tonnes by 2030 and making India an export hub for the clean fuel.
• Free power transmission: The new policy offers 25 years of free power transmission for any new renewable energy plants set up to supply power for green hydrogen production before July 2025.
  • This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam and would not be required to pay any inter-state transmission charges.
  • Besides, producers will be allowed to set up bunkers near ports for storage of green ammonia for export by shipping.
• The energy plants set up to produce green hydrogen/ammonia would be given connectivity to the grid on a priority basis.
• Under the policy, port authorities will also provide land at applicable charges to green hydrogen and green ammonia producers to set up bunkers near ports for storage prior to export.
• The government of India proposes to set up manufacturing zones. Green Hydrogen/Green Ammonia production plants can be set up in any of the Manufacturing Zones.
• Renewable energy consumed for the production of green hydrogen/ ammonia shall count towards Renewable Purchase Obligation (RPO) compliance of the consuming entity.
• The government will establish a single portal for all statutory clearances and permissions required for manufacture, transportation, storage and distribution of green hydrogen/ammonia.

Also read: Preparation Plan for Environment & Ecology

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Significance 

• The implementation of this Policy will help in providing clean fuel to the common people of the country.
• This will reduce dependence on fossil fuel and also reduce crude oil imports. 
• It will help in achieving country's objective to become an export hub for green hydrogen and green ammonia.
• 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.

Other Initiatives of Government

• National Hydrogen Mission (NHM): The announcement is made in the 2021 Budget, for the launch of NHM that would enable the generation of hydrogen “from green power sources”.
  • The cost of Green Hydrogen manufactured through electrolysis process is estimated to be around Rs. 350 per kg. The Government plans to bring it down to Rs. 160 per kg by 2029-30.
• The Draft Electricity Rules, 2021 have allowed green hydrogen purchase to help meet Renewable Purchase Obligation (RPOs).
• Extended the PLI (Production Linked Incentive) scheme for manufacturing electrolyzers.
• The Ministry of Road Transport and Highways (MoRTH) has notified Hydrogen as a fuel for automotive application for Bharat Stage VI vehicles.

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