Green Hydrogen and Green Ammonia Policy

Why in news?

• The Centre recently notified the green hydrogen and green ammonia policy aimed at boosting the domestic production of green hydrogen to 5 million tonnes by 2030 and making India an export hub for the clean fuel.

What is Green Hydrogen\Green Ammonia?

• Green hydrogen is generated by breaking down water in an electrolyzer - an energy intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.
• The hydrogen produced can be combined with nitrogen to make ammonia, avoiding hydrocarbons in the production process.
• Green ammonia is used to store energy and in fertilizer manufacturing.

How is the policy set to boost domestic production of green hydrogen/ammonia production?

• The new policy 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.
• 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 move is likely going to make it more economical for key users of hydrogen and ammonia such as the oil refining, fertiliser and steel sectors to produce green hydrogen for their own use.
• These sectors currently use grey hydrogen or grey ammonia produced using natural gas or naphtha.

What are the incentives?

• The government is set to provide a single portal for all clearances required for setting up green hydrogen production.
• There will be a facility for producers to bank any surplus renewable energy generated with discoms for upto 30 days and use it as required.
• Power distribution companies may also procure renewable energy to supply green hydrogen producers but will be required to do so at a concessional rate which will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission, under the new policy.
• Such procurement would also count towards a state’s Renewable Purchase Obligation (RPO) under which it is required to procure a certain proportion of its requirements from renewable energy sources.
• Connectivity to the grid
  • Energy plants set up to produce green hydrogen/ammonia would be given connectivity to the grid on a priority basis.
• Facilities to boost export of green hydrogen and ammonia:
  • Under the policy port authorities will also provide land at applicable charges to green hydrogen and green ammonia producers to set up bunkers near ports for storage prior to export.

PRACTICE QUESTION:

Which of the following statements are correct regarding Green Hydrogen?

1. It is produced by splitting water into hydrogen and oxygen

2. It can be transformed into electricity or synthetic gas

2. It can be mixed with natural gas to burn thermal power plant

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1,2 and 3

Answer