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Green Hydrogen/ Green Ammonia Policy

Context:

Ministry of Power notified Green Hydrogen/ Green Ammonia Policy.

Relevance:

GS II- Government Policies and Interventions, GS III- Environment

Dimensions of the Article:
  1. About the Green Hydrogen/ Green Ammonia Policy
  2. Benefits under policy

About the Green Hydrogen/ Green Ammonia Policy:

  • Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels.
  • Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia.
  • It is one of the major requirements towards environmentally sustainable energy security of the nation.
  • Aim: To emerge as an export Hub for Green Hydrogen and Green Ammonia. 
The policy provides as follows:
  • 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.
  • Open access will be granted within 15 days of receipt of application.
  • 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.
  • Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before 30th June 2025.
  • The manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on priority basis to avoid any procedural delays.
  • The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/Ammonia manufacturer and the Distribution licensee for consumption of renewable power.
  • 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 MNRE.
  • Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export / use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.

Benefits under policy

  • 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 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.

-Source: Indian Express, PIB

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October 2022
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