India aims to produce 5mnt of green hydrogen by 2030
The government of India has introduced a National Hydrogen Mission with a target to achieve 5 million tonnes of green hydrogen output and thus make India a ‘Green Hydrogen Hub’ by 2030.
The Mission not only aims to aid the government in meeting its climate targets but also advances India towards related development of renewable energy capacity.
Hydrogen and ammonia are envisaged to be the future fuels to replace fossil fuels (crude oil and coal). Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia, is one of the major requirements towards environmentally sustainable energy security of the nation.
The government of India is taking various measures to facilitate the transition from fossil fuels/fossil fuels-based feedstocks to green hydrogen / green ammonia.
“The implementation of this policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuels and also cut crude oil imports. The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia,” said R K Singh, Cabinet Minister, Ministry of New and Renewable Energy.
The policy endeavour enables green hydrogen/ammonia manufacturers to purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer anywhere. The policy grants open access within 15 days of receipt of the application.
Under the policy, the green hydrogen/ammonia manufacturer can bank his unconsumed renewable power, for up to 30 days, with a distribution company and take it back when required. Further, 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.
In a major policy boost to the manufacturers of green hydrogen / green ammonia, the government has allowed waiver of inter-state transmission charges for a period of 25 years for the projects commissioned before June 30, 2025.
The government has allowed manufacturers of green hydrogen/ammonia and the renewable energy plant, connectivity to the grid on a priority basis to avoid any procedural delays. Also, 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.
From the government's side, a single portal will be set up by the Ministry of New & Renewable Energy (MNRE) to ensure ease of doing business for carrying out all the activities including statutory clearances in a time-bound manner.
At the generation and the manufacturing end, and Inter-State Transmission System (ISTS) for renewable energy capacity will be set up for the purpose of manufacturing green hydrogen / green ammonia which will be granted on priority. 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.
“The policy promotes renewable energy (RE) generation which will be the basic ingredient in making green hydrogen. This in turn will help in meeting the international commitments for clean energy,” Singh added.