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To further complement these ongoing efforts, India is prioritising green hydrogen as a potential solution to decarbonise hard-to abate sectors such as refinery, ammonia, methanol, iron and steel and heavy-duty trucking.

Prime Minister Modi recently announced the National Hydrogen Mission with the aim of making India the world’s largest hydrogen hub. The efforts of the Mission has resulted in the recently approved Green Hydrogen Policy. India’s distinct advantage in terms of low-cost renewable electricity, complemented by rapidly falling electrolyser prices, can enable green hydrogen to be not just economical compared to fossil-fuel based hydrogen but also compared to the green hydrogen being produced around the globe. Adoption of green hydrogen can enable India to abate 3.6 gigatonnes of CO2 emissions cumulatively between now and 2050. This can be a significant lever for the nation to contribute towards its recently announced climate targets and net-zero vision.

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India’s Green Hydrogen Policy

Most large economies including India have committed to net zero targets. Transition to Green Hydrogen and Green Ammonia is one of the major requirements for reduction of emissions, especially in the hard to abate sectors. Government of India have had under consideration a number of policy measures in order to facilitate the transition from fossil fuel I fossil fuel based feed stocks to Green Hydrogen / Green Ammonia both as energy carriers and as chemical feed stock for different sectors.

After careful consideration, the Government of India have framed the policy on Green Hydrogen which provides the following:

Definition of Green Hydrogen

Green Hydrogen/Ammonia is defined as Hydrogen/Ammonia produced by electrolysis using Renewable Energy or from biomass.

Transmission Charge Waiver

A 25-year waiver on inter-state transmission charges is offered for projects commissioned before 30th June 2025.

Power Sourcing
Flexibility

Green Hydrogen/Ammonia can be produced using co-located or remotely sourced Renewable Energy with Open Access granted within 15 days.

Banking Period

Renewable Energy used for Green Hydrogen/Ammonia can be banked for a period of up to 30 days.

Banking Charges Limit

Banking charges shall not exceed the difference between average renewable tariffs and Day Ahead Market prices.

Priority Connectivity

Connectivity to the ISTS at both generation and production ends will be prioritized under relevant electricity transmission rules.

Land in RE Parks

Land within Renewable Energy Parks may be allotted for Green Hydrogen/Ammonia production facilities.

Manufacturing Zones

Production units for Green Hydrogen/Ammonia can be set up in designated Government Manufacturing Zones.

Port Bunkers

Producers may establish storage bunkers near ports for exports; land will be provided by port authorities at applicable rates.

RPO Compliance Credit

Renewable energy used for production will count towards the Renewable Purchase Obligation (RPO) of the producer or DISCOM.

DISCOM Procurement Option

Distribution licensees may supply renewable energy to producers, charging procurement cost, wheeling, and minimal margin.

Single-Window Portal

MNRE will create a unified portal to streamline approvals for manufacturing, transport, storage, and distribution processes.

Demand Aggregation

To ensure competitive pricing, MNRE may aggregate demand and organize consolidated bids through implementing agencies.

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THE INFORMATION PRESENTED IN THE PAGE SOMES FROM THE ENTITY OF GOVERNMENT OF INDIA , NITI AAYOG FOR CREATING AWARENESS ABOUT THE INITIATVES FROM THE INDIAN GOVERNMENT FOR PROMOTION OF HYDROGEN PROGARAM.

This document has been prepared for information and discussion purposes only. It contains information of a preliminary nature that is based on unverified and unaudited information. The information and opinions contained in this document are for background purposes only and do not purport to be full or complete. No reliance may beplaced for any purpose on the information or opinions contained in this document or their accuracy or completeness. This document contains information from third party sources.

This document contains certain forward-looking statements. In some cases forward looking statements can be identified by the use of terms such as “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or variations thereof, or by discussions of strategy, plans, objectives, goals, future events or intentions. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-thinking statements.

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