Government notifies Green Hydrogen Policy

The Ministry of Power (MoP) has notified the Green Hydrogen Policy, to facilitate the transition from fossil fuel / fossil fuel based feed stocks to green hydrogen/green ammonia. A key measure that the policy provides is waiver of inter-state transmission system charges for a period of 25 years to the manufacturers of green hydrogen/ammonia for the projects commissioned before June 30, 2025.

Further, the policy provides that open access for sourcing of renewable energy (RE) will be granted within 15 days of receipt of application; banking will be permitted for a period of 30 days for RE used for making green hydrogen/ ammonia; benefit of renewable purchase obligation will be granted to the green hydrogen/ammonia manufacturer for consumption of RE. Besides this, distribution licensees can also procure and supply RE to the manufacturers of green hydrogen/ 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, among other measures.The implementation of this policy will provide clean fuel and reduce dependence on fossil fuel and also reduce crude oil imports. The objective is for the country to emerge as an export hub for green hydrogen and green ammonia.