On the 17th of February 2022, the Government of India notified the first possible phase of the Green Hydrogen Policy to boost the country's production of green hydrogen to 5 million tonnes by 2030. The policy aims at making India the export hub for clean fuel. It is a step forward for the National Hydrogen Mission.
Facts About Green Hydrogen Policy by India
The Green Hydrogen Policy is the first attempt to set up a hydrogen ecosystem. The Green Hydrogen Policy aims to help India produce low-cost green hydrogen and ammonia for export purposes. Germany and Japan could be key buyers of green hydrogen and ammonia from India.
The manufacturers of green hydrogen and ammonia may purchase renewable power through the power exchange or can even set up their renewable energy capacity or get it through any other developer from anywhere.
This indicates that the policy will allow a green hydrogen producer in Rajasthan to set up solar plants to supply renewable energy to an Assam-based green hydrogen plant without paying an inter-state transmission charge. It will make it economical for the primary hydrogen and ammonia users, such as oil refineries, steel sectors, and fertilisers, to produce green hydrogen for their usage. Open access is to be granted within 15 days from the receipt of the application.
The Green Hydrogen Policy further includes that the manufacturers of green hydrogen and ammonia will be given connectivity to the grid on a priority basis.
There will be a single portal for carrying out all related activities to ensure ease of doing business. In a time stipulated manner, statutory clearances will be set up by MNRE(Ministry of New and Renewable Energy).
The connectivity between the generation end and the manufacturer of green hydrogen and ammonia to the ISTS shall be granted priority.
The manufacturers of these green hydrogen and ammonia can set up bunkers near ports for storage for export and shipping. Respective port authorities will provide the land for the storage purpose at charges as applicable.
Significance of Green Hydrogen Policy
- The policy will help reduce the cost of Green Hydrogen Production
- The policy will be instrumental in developing a needed competitive green hydrogen sector.
- Green House Policy will help India achieve its net-zero carbon emissions by 2070.
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Challenges Faced by Green Hydrogen Policy
Transmission Charges - It takes 50kWh of electricity to produce 1 kg of green hydrogen.
Currently, the landed cost of RE from a remote location amounts to Rs.500 per kg which is 3.5 times the cost of grey hydrogen.
Other challenges include reluctance on the part of states, the lesser margin for producers, and the unwillingness on the part of industries due to the higher cost involved.
FAQs on Green Hydrogen Policy
Q.1. When was the Green Hydrogen Policy launched?
Ans. The first part or phase of the Green Hydrogen Policy by the Indian Government was launched on the 17th of February 2022.
Q.2. What is Green Hydrogen Policy?
Ans. The Green Hydrogen Policy is the Indian Government's attempt to meet the production target of 5 million tonnes of green hydrogen by no later than 2030. The policy offers almost 25 years of free power transmission for any renewable energy plant set up to supply power for the production of green hydrogen before July 2025.
Q.3. What is the main purpose behind the Green Hydrogen Policy?
Ans. The Government of India intends to boost the manufacture of green hydrogen with the Green Hydrogen Policy. Hence the policy has been adopted. It will also help India meet its climate goals and become the hub of green hydrogen.
Q.4. What is Green Hydrogen, as mentioned in Green Hydrogen Policy?
Ans. The hydrogen gas produced through water electrolysis is called Green Hydrogen, as mentioned in Green Hydrogen Policy. It is an energy-intensive process that splits water into hydrogen and oxygen. The hydrogen thus produced can be combined with nitrogen to form ammonia, thereby avoiding hydrocarbons.
Q.5. How much is allocated for the Green Hydrogen Policy?
Ans. INR 25 crores have been allocated in the Union Budget for R&D of the Green Hydrogen Policy. India aims to produce three-fourths of total hydrogen by using renewable energy resources.