The move to Green Hydrogen will help in tackling pollution.
The central government on Thursday notified the first part of the much-awaited National Hydrogen Policy, allowing free-wheeling of renewable energy used for producing green hydrogen. It has been announced in accordance with the National Hydrogen Mission, launched by Prime Minister Narendra Modi on Independence Day last year.
Power and New and Renewable Energy Minister Raj Kumar Singh said the policy will help lower the cost of producing carbon-free green hydrogen.
In a release, the Ministry of Power said that the government is taking various measures to facilitate the transition from fossil fuel to green hydrogen/green ammonia.
Here are the salient features of the National Hydrogen Policy:
- 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.
- 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 or use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.