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Green Hydrogen Policy

 What is Green Hydrogen / Green Ammonia?

  • Green hydrogen, also referred to as ‘clean hydrogen’ is produced by using electricity from renewable energy sources, such as solar or wind power, to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis.
  • The hydrogen thus produced is used in the manufacturing process and oxygen is released into the atmosphere or bottled and sold to hospitals and industries that need it.
  • A similar process also helps produce green ammonia.
  • Ammonia is a pungent gas that is widely used to make agricultural fertilisers.
  • Green ammonia production is where the process of making ammonia is 100% renewable and carbon-free.
  • One way of making green ammonia is by using hydrogen from water electrolysis and nitrogen separated from the air. 

Green Hydrogen Policy-

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 a 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.
  • Connectivity, at the generation end and the Green Hydrogen / Green Ammonia manufacturing end, to the ISTS for Renewable Energy capacity set up for the purpose of manufacturing Green Hydrogen / Green Ammonia shall 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 as RE will be the basic ingredient in making green hydrogen. In the second phase of the policy, the government would mandate the usage of green hydrogen and green ammonia by plants in a phased manner.

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