Analysis of Sansad TV Discussion: ”Green Hydrogen”

Relevance

”GS 2: Government Policies & Interventions”
”GS 3: Environmental Pollution & Degradation, Growth & Development, Conservation”

Introduction

• The government on Thursday(February 17, 2022) unveiled the first part of the much-awaited National Hydrogen Policy.
• The government is targeting the production of 5 million tonnes of green hydrogen by 2030.
• The policy allows free inter-state wheeling of renewable energy used in the production of green hydrogen and ammonia as it seeks to boost usage of carbon-free fuel and make India an export hub.
• It offers 25 years of free power transmission for any new renewable energy plants set up to supply power for green hydrogen production before July 2025.
• There will also be a single portal for all clearances required for setting up green hydrogen production as well as a facility for producers to bank any surplus renewable energy generated with discoms for upto 30 days and use it as required.

Background

• Hon’ble Prime Minister launched the National Hydrogen Mission on India’s 75^th Independence Day (i.e. 15^th August 2021).
• 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.

What is Green Hydrogen?

• 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.
• Green hydrogen is hydrogen gas produced through the electrolysis of water — an energy-intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.
• The government of India is taking various measures to facilitate the transition from fossil fuel/fossil fuel-based feedstocks to green hydrogen / green ammonia.

Key points of the latest policy

• 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, for up to 30 days, with the distribution company and take it back when required.
• Waiver of inter-state transmission charges for a period of 25 years. This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam and would not be required to pay any inter-state transmission charges.
• 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.
• 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.

How will it boost India’s energy security and also make India the hub of green hydrogen in the global rush?

• The implementation of this Policy will reduce dependence on fossil fuel 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.
• 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.

Conclusion

Making green hydrogen cost-competitive; waiver of central transmission charges is a good first step in enabling green hydrogen in India.

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