Green Hydrogen/ Green Ammonia Policy

Context: Recently, Ministry of Power has notified the Country’s first Green Hydrogen/ Green Ammonia Policy.

About Green Hydrogen\Green Ammonia

• Green hydrogen is generated by breaking down water in an electrolyzer. The hydrogen produced can be combined with nitrogen to make ammonia, avoiding hydrocarbons in the production process. 
• Green ammonia is used to store energy and in fertilizer manufacturing.India has set a target to produce 5 million tonnes (mt) of green hydrogen by 2030.

Aim of the Policy

• To reduce fossil fuel usage and increase penetration of Green Hydrogen/ Green Ammonia.
• The policy follows the Prime Minister’s announcement about a National Hydrogen Mission.

Key features

The policy provides several incentives for manufacturers, consumers of green hydrogen and green ammonia. These include: 

• Manufacturing zones to be set up for green hydrogen/ammonia.
• Demand for green hydrogen from key sectors such as fertilizers, steel and refineries would be aggregated and offered as a mega tender by MNRE.
• Inter-state transmission charges waived for 25 years.
• Open access granted to source renewable energy from anywhere in the country.
• Manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on a priority basis.
• The benefit of Renewable Purchase Obligation (RPO) will be granted to the hydrogen/ammonia manufacturer.
• Bunkers to be set up near ports for storage of green ammonia for export, use by the shipping industry.