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Home Explainers

Central Government’s Green Hydrogen Policy

Recently, on February 17th, the Ministry of Power notified the Green Hydrogen/Green Ammonia policy for the production of green hydrogen and green ammonia using renewable energy.

Bhavika Samtani by Bhavika Samtani
March 8, 2022
in Explainers
Reading Time: 3 mins read
Central Government's Green Hydrogen Policy
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In today’s world, energy production using renewable forms is the biggest challenge. For environmental welfare and renewable sources of energy, conferences have been held at the global level since 1972. The first one was conducted at the Stockholm, Sweden conference, entitled the United Nations Environment Programme. 

As we know, due to carbon emissions, the Earth is losing all its resources, species, and the possibility of life that was once present in abundance. Today’s environmentalists and scientists conclude that hydrogen can prove to be one of the holy sources, providing clean and green energy with low pollution. 

Table of Contents
  • The Policy 
  • I) Benefits
  • II) Aim of the Policy
  • III) India's Position in Renewable Energy Production
  • Challenges with Green Hydrogen 
  • Conclusion

The Policy 

Officially in 2021, this policy was launched, and on February 17th, 2022, the Ministry of Power notified its move, likely going to make it more economical for key users of hydrogen and ammonia, such as oil refining and fertilizer, and steel sectors, to produce green hydrogen for their own use. The demonstration is made up of three large verticals:

Central Government's Green Hydrogen Policy
Image Source: twitter

I) Benefits

1) ISTC- Waiver of Inter-State Transmission Charges 

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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 will not be required to pay any inter-state transmission charges.

2) Concession on Land 

Port authorities will provide land at applicable charges for green hydrogen and green ammonia producers to set up bunkers near ports for storage before export.

3) Connectivity

Energy plants that will be set up to produce green hydrogen and ammonia would be given connectivity to the grid on a priority basis.

II) Aim of the Policy

The policy is aimed at boosting the domestic production of green hydrogen to 5 million tonnes by 2030 and making India an export hub for clean fuel.

III) India’s Position in Renewable Energy Production

India has so far made changes in the field of energy production with renewable sources. We claimed an abundance of solar energy production output at a low cost, we did that. Today, in Gurugram, Haryana is one of the main sources of solar energy production units. The same goes for wind energy. We established wind plants in India and Jaisalmer Wind Park, in Rajasthan is the world’s second-largest wind farm. Now, it’s about hydrogen. We’ll hopefully land in a great position this time as well.

Central Government's Green Hydrogen Policy
Image Source: esi-africa

Challenges with Green Hydrogen 

Extracting hydrogen is difficult. The major problem is that it is found in compounds. So the extraction of hydrogen from the compounds is done through a series of electrolysis. Conducting electrolysis is very costly. After extraction, the properties of hydrogen cause difficulty in storage due to its corrosive and highly flammable nature. Also, the fuel cells in which we store them are costly. 

Conclusion

Addressing a post-budget webinar on ‘Energy for Sustainable Growth’, Modi said, “Ample availability of renewable energy power gives India an inherent advantage. It can be a global hub of green hydrogen.” The prime minister also said the country’s clear vision is that sustainable growth is possible only with sustainable energy resources.

“Hydrogen ecosystem is interconnected with fertilizers, refineries, and the transport sector. It is a field that the private sector must innovate in to fully utilize India’s potential. I promise the private sector that the government is with you in your efforts,” he said.

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