Green Hydrogen refers to hydrogen produced through electrolysis powered by renewable energy sources like wind and solar. This process includes splitting water into hydrogen and oxygen, thus creating a sustainable source of energy. The importance of green hydrogen for India lies in its potential to help the country achieve its target of becoming carbon neutral by 2070. It offers an opportunity to enhance national and regional energy security, access and availability while also fulfilling India’s Nationally Determined Contribution (INDC) Targets.
National Hydrogen Mission: An Initiative towards a Sustainable Future
Launched in 2021 as part of the government’s efforts to meet its climate targets, the National Hydrogen Mission aims to establish India as a green hydrogen hub. The mission is instrumental in promoting the use of clean fuels. In light of this, India is considering making it mandatory for fertilizer plants and oil refineries to purchase green hydrogen.
Policy Changes: Encouraging Production of Green Hydrogen and Green Ammonia
Recently, the Ministry of Power introduced the Green Hydrogen/Green Ammonia Policy. This policy encourages the production of green hydrogen or green ammonia using renewable energy sources. The government plans to set up manufacturing zones for production and provide connectivity to the Inter-State Transmission System (ISTS) on a priority basis. These provisions will aid producers in setting up infrastructure near ports for storage of green ammonia, enabling its export via shipping.
Producers’ Benefits under the Green Hydrogen/Green Ammonia Policy
The Green Hydrogen/Green Ammonia Policy extends several benefits to green hydrogen producers. For instance, under this policy, manufacturers can buy renewable power or set up Renewable Energy (RE) capacity themselves or via any other developer. Additionally, if the production facility is commissioned before June 2025, it can avail free transmission for 25 years. The producers also get the advantage of banking surplus renewable energy with power distribution companies for up to 30 days.
Understanding Green Ammonia
Green ammonia refers to a chemical derived primarily for the production of nitrogenous fertilizers like urea and ammonium nitrate in a process that’s entirely renewable and carbon-free. This process involves using hydrogen from water electrolysis and nitrogen separated from the air in the Haber-Bosch process powered by sustainable electricity.
The Role of Green Ammonia in Combatting Environmental Challenges
Green ammonia has great potential in constructing a sustainable environment. Apart from its mainstream use in the manufacturing of carbon-neutral fertilizer products, it plays a crucial role in decarbonising food value chains. It also shows promise as a climate-neutral shipping fuel. Moreover, using green ammonia could address the looming challenges of producing enough food for our growing global population and providing CO2-free energy.
The Road Ahead: Harnessing Green Hydrogen and Green Ammonia
India holds immense potential to reduce the cost of green hydrogen through low-cost renewable generating plants and leveraging cost-cutting experiences gathered from solar and wind reverse auctions. With a huge market potential, a flourishing economy, and a young demography, the promotion of hydrogen-based technologies can serve as a long-term advantage for the government. However, it’s essential to consider hydrogen as complementary to its alternatives rather than viewing it as an ultimate, standalone solution. Given that current storage and transportation technologies are expected to mature and become cost-effective by 2030, promoting the concurrent production and utilization of hydrogen at the same location could help safeguard investments against undesirable sunk costs.