Green Hydrogen Policy 2022

The Green Hydrogen/ Green Ammonia Policy was notified by the central government in February 2022. It is a major step, which will help India achieve its climate targets and aid in the smooth implementation of the National Hydrogen Mission. The policy also aims to make India an export Hub for Green Hydrogen and Green Ammonia

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The National Hydrogen Mission was launched on  August 15, 2021. The aims of the mission are as follows:

  • To help the government in making India a green hydrogen hub
  • To achieve the environment and climate related targets.
  • To help in meeting the target of production of 5 million tonnes of Green hydrogen by 2030 
  • To aid in the development of related renewable energy capacity.

This is an important topic for the GS mains paper of the  IAS exam

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Important Facts About the Green Hydrogen Policy

The facts about the green hydrogen policy are given below:

  • Power exchange and developing renewable energy capacity: Manufacturers of Green Hydrogen/Ammonia may purchase renewable power from the power exchange or establish renewable energy capacity themselves or through any other developer, anywhere.
  • Open access: Open access will be given within 15 days of receipt of application.
  • Unconsumed renewable power: The Green Hydrogen / Ammonia manufacturers can bank their unconsumed renewable power, up to 30 days, with a distribution company and take it back when required.
  • Distribution licensees: Distribution licensees can also purchase 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: The manufacturers of Green Hydrogen and Green Ammonia will be allowed a waiver of inter-state transmission charges for a period of 25 years for the projects commissioned before 30th June 2025.
  • Connectivity to the grid: To avoid any procedural delays, the manufacturers of Green Hydrogen / Ammonia and the renewable energy plant will be given connectivity to the grid on priority basis.
  • Renewable Purchase Obligation (RPO): The benefit of Renewable Purchase Obligation (RPO) will be given to the hydrogen/Ammonia manufacturer and the Distribution licensee for consumption of renewable power.
  • A single portal: To ensure ease of doing business, the MNRE will establish a single portal to carry out all the activities including statutory clearances in a time bound manner. 
  • Connectivity: 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 will be granted on priority.
  • Storage of green hydrogen/green ammonia: Green Hydrogen/Green Ammonia manufacturers will be permitted to set up bunkers near Ports for storage of Green Ammonia for export/use by shipping. Moreover, the land for the storage will be provided by the respective Port Authorities at applicable charges.
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Benefits of the Green Hydrogen Policy

  • It will provide clean fuel.
  • It will reduce dependence on fossil fuel and reduce crude oil imports.
  • It will help India in meeting the international commitments for clean energy as the policy promotes Renewable Energy (RE) generation (RE will be the basic ingredient in making green hydrogen).  

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