New Delhi, Feb 17 (FN Bureau) Seeking to make India an export hub for green hydrogen and green ammonia, the government has notified the policy on the clean fuel. “The implementation of this policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuel and also reduce crude oil imports,” Power Ministry said on Thursday.
This will also help India meet the international commitments for clean energy. “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 Power Ministry said. As per the new policy, green hydrogen and ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer. Open access will be granted within 15 days of receipt of such application. The manufacturers can bank his unconsumed renewable power, up to 30 days, with 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 which will only include the cost of procurement, wheeling charges and a small margin as determined by the State Commission,” the policy said. 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 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, the policy said.