Logo

Logo

India offers sops to Green Hydrogen and Green Ammonia industry

He said the main objective of the Policy is to make India an export Hub for Green Hydrogen and Green Ammonia.

India offers sops to Green Hydrogen and Green Ammonia industry

(Representational Image; Source: iStock)

In a move to reduce dependence on fossil fuel and reduce crude oil import, India on Thursday notified its National Hydrogen Policy targeting to produce 5 million tonnes of Green Hydrogen by 2030.

The government offered a series of sops to the manufacturers of Green Hydrogen and Ammonia asking them to purchase renewable power from the exchange or set up renewable energy capacity, purchase of renewable energy at the concessional price for producing Green Hydrogen and Ammonia, and waiver of inter-state transmission charges for a period of 25 years for the projects commissioned before June 2025.

The government also assured the producers that they would be granted open access within 15 days of receipt of application and priority power connection 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. And to further ensure ease of doing business a single portal would be made for carrying out all the activities including statutory clearances in a time-bound manner by MNRE,” said a senior officer of the Ministry.

Advertisement

“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, the Ministry said. He said the main objective of the Policy is to make India an export Hub for Green Hydrogen and Green Ammonia.

Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels. Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia is one of the major requirements towards environmentally sustainable energy security of the nation, the officer said. Prime Minister Narendra Modi had announced the National Hydrogen Mission on 15 August last year targeting to cut down carbon emissions and increase the use of renewable sources of energy.

Advertisement