“This will help in meeting the target of production of 5 million tonnes of green hydrogen by 2030 and the related development of renewable energy capacity,” Power Ministry said in a statement.
In a significant step towards India’s “green future”, the Ministry of Power on Thursday notified policy for green hydrogen and green ammonia policy featuring incentives like a free transmission for 25 years to boost production of this clean source of energy.
Known as the National Hydrogen Mission, the policy “aims to aid the government in meeting its climate targets and making India a green hydrogen hub. This will help in meeting the target of production of 5 million tonnes of green hydrogen by 2030 and the related development of renewable energy capacity,” the ministry said in a statement.
The implementation of this policy will provide clean fuel to the common people of the country, the statement added. This will reduce dependence on fossil fuel and also reduce crude oil imports. The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia.
The policy entails steps under which 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 while open access will be granted within 15 days of receipt of application and much more.
With this policy, India will allow companies that manufacture green hydrogen to install renewable energy generating plants without transmission costs.
“Green hydrogen manufacturers can set up renewable energy capacity by themselves. We will give them free transmission until 2025 and banking for 30 days,” Power Minister R K Singh had earlier said.
Banking allows renewable energy producers to transmit unused electricity to the grid, which can subsequently be used whenever needed, he said, adding that transmission charges would be waived for companies setting up manufacturing facilities before 2025.
Singh had said in September that India planned to provide federal financial support for the setting up of electrolysers as it wants to make the use of green hydrogen mandatory for refineries and fertiliser plants.
Green hydrogen, produced using renewable energy, has the best environmental credentials of the various shades of the clean-burning fuel, which can also be produced using fossil fuel as the energy source to electrolyse water.
Government of India is taking various measures to facilitate the transition from fossil fuel or fossil fuel-based feed stocks to green hydrogen and green ammonia.
Source: BusinessToday.In
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