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.