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Green Hydrogen Policy | Green Ammonia Policy

Green Hydrogen/ Green Ammonia Policy- Relevance for UPSC Exam

  • GS Paper 2: Governance, Administration and Challenges- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

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Green Hydrogen/ Green Ammonia Policy- Context

  • Recently, the Ministry of Power notified the Green Hydrogen/ Green Ammonia Policy. Green Hydrogen/ Green Ammonia Policy will be a step forward toward National Hydrogen Mission.

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Green Hydrogen/ Green Ammonia Policy- Key Points

  • Importance: Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels.
    • Green hydrogen and green ammonia are one of the major requirements for the environmentally sustainable energy security in the nation.
  • About: Production of Hydrogen and Ammonia fuels by using power from renewable energy, termed as green hydrogen and green ammonia.
  • Government Measures: The government of India is taking various measures to facilitate the transition from fossil fuel/fossil fuel-based feedstocks to green hydrogen / green ammonia.
    • Green Hydrogen/ Green Ammonia Policy is a step in that direction.

Hydrogen-based Advanced Fuel Cell Electric Vehicle


Green Hydrogen/ Green Ammonia Policy- Key Provisions

  • 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.
  • Open access will be granted within 15 days of receipt of the application.
  • The Green Hydrogen / Ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with the distribution company and take it back when required.
  • Distribution licensees can also procure and supply Renewable Energy to the manufacturers of Green Hydrogen / Green Ammonia in their States at concessional prices.
    • This concessional price 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 for a period of 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before 30th June 2025.
  • The manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on a priority basis to avoid any procedural delays.
  • The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/Ammonia manufacturer and the Distribution licensee for consumption of renewable power.
  • To ensure ease of doing business a single portal for carrying out all the activities including statutory clearances in a time bound manner will be set up by MNRE.
  • 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 shall be granted on priority.
  • Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export/use by shipping.
    • The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.

Government Planning to Blend Green Hydrogen with Natural Gas


Green Hydrogen/ Green Ammonia Policy- Significance

  • Green Hydrogen/ Green Ammonia Policy will provide clean fuel to the common people of the country.
    • This will reduce dependence on fossil fuels and also reduce crude oil imports.
  • The objective also is for India to emerge as an export Hub for Green Hydrogen and Green Ammonia.
  • The policy promotes Renewable Energy (RE) generation as RE will be the basic ingredient in making green hydrogen.
    • This in turn will help in meeting the international commitments for clean energy.

Global Green Hydrogen Hub


National Hydrogen Mission- Key Points

  • Background: The proposal for National Hydrogen Mission was made in the Budget 2021 to enable the generation of hydrogen “from green power sources”.
  • About: On India’s 75th Independence Day, the Prime Minister of India announced the launch of the National Hydrogen Mission (NHM).
  • Aim: National Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen.
  • Goal: National Hydrogen Mission is expected to help in meeting the target of production of 5 million tonnes of Green Hydrogen by 2030 and the related development of renewable energy capacity.



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