Green Hydrogen Policy

Green Hydrogen Policy

In this article we will discuss Green Hydrogen Policy

In this article, we will discuss Green Hydrogen Policy. So, let’s get started.

Green Hydrogen Policy

  • Under the policy, the government is offering to set up manufacturing zones for production, connectivity to the ISTS (Inter-State Transmission System) on priority basis, and free transmission for 25 years if the production facility is commissioned before June 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 would not be required to pay any inter-state transmission charges.
  • Besides, producers will be allowed to set up bunkers near ports for storage of green ammonia for export by shipping.
  • Manufacturers of Green hydrogen and ammonia are allowed to purchase renewable power from the power exchange or set up Renewable Energy (RE) capacity themselves or through any other developer, anywhere.
  • It provides facility for producers to bank any surplus renewable energy generated with discoms (power distribution companies) for upto 30 days and use it as required.

Significance of the Policy

  • India’s largest oil refiner, Indian Oil Corp (IOC) estimates that GHP measures will reduce the cost of green hydrogen production by 40-50%.
  • Fuels like Green Hydrogen and Green Ammonia are vital for any nation’s environmentally sustainable energy security.
  • India has already committed to achieving net-zero carbon emissions by 2070, and green hydrogen will play a significant role as a disruptive feedstock in India’s transition from oil and coal.
  • The GHP lays a solid foundation for developing a competitive green hydrogen sector in India.

By competitiveworld27

Competitive World is your online guide for competitive exam preparation

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