Centre unveils National Hydrogen Policy to reduce dependence on fossil fuels, allows free wheeling of power

Allowing free inter-state wheeling of renewable energy used in the production of green hydrogen, the Centre on Thursday unveiled the first part of the much-awaited National Hydrogen Policy. Power and New and Renewable Energy Minister Raj Kumar Singh said the policy will help lower the cost of producing carbon-free green hydrogen. He also said the government is targeting production of 5 million tonnes of green hydrogen by 2030. Under the policy, companies will have the liberty to set up the capacity to generate electricity from renewable sources such as solar or wind anywhere in the country by themselves or through a developer. This electricity will be allowed to be wheeled, free of cost through open access of the transmission grid, to the plant where hydrogen is to be produced. The government will also allow banking or storage of excess green hydrogen produced by any company for up to 30 days, in case of capacities that are set up before 2025, he said. The ministry has waived the power transmission charges for 25 years for these units, allowed them to buy renewable power from exchanges or their own unit and allowed these companies to bank unconsumed renewable power for up to 30 days with power distribution companies (discom). These companies will be provided open access within 15 days of application. “The mission 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 statement from the ministry said. “The implementation of this 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 our country to emerge as an export hub for green hydrogen and green ammonia,” said the statement from the ministry. “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,” the ministry said. Manufacturers of Green Hydrogen/Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export or use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges. This is the first phase of the policy, which industry players said would create a favourable regulatory and enabling environment for manufacturers of green hydrogen and ammonia. Manufacturers of green hydrogen and green ammonia will be allowed to source renewable energy to fuel their plants from energy exchanges, other units or their own units. Power discoms can also procure and supply renewable energy to the manufacturers in their states at concessional prices, which will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission. Prime Minister Narendra Modi, while addressing the nation on 15 August, 2021, had announced that the green hydrogen policy would be rolled out across the nation. The policy is part of the mission to cut down India’s greenhouse gas emissions. It is aimed towards meeting the “climate targets and making India a green hydrogen hub”, the government said. “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,” it added. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News ,  India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.