Green hydrogen policy to offer open access, free storage/transmission

Our Bureau | Updated on: Feb 16, 2022
R K Singh 

R K Singh 

First part of the national hydrogen policy to come out by Thursday or Friday, says Power Minister

The government will notify first part of the National Hydrogen Policy this week to promote manufacturing of green hydrogen, under which any entity can set up a renewable energy (RE) capacity anywhere in the country and the government will provide the open access, free storage for 30 days and free transmission if the facility is set up before 2025.

“The first part of Green Hydrogen Policy will come out tomorrow (Thursday) or day after. For manufacturing green hydrogen, we will give the liberty to the entities that they can set up RE capacity anywhere in India by themselves or through a developer. The government will provide them open access, banking (energy storage with Discom) for 30 days, and free transmission if that capacity is set up before 2025. They can produce green hydrogen or green ammonia,” Power and New & renewable Energy Minister RK Singh told reporters here.

Dollar denominated bids

The policy will also feature dollar denominated bids, offer of land in RE parks and land allocation near ports for creating bunkers for green hydrogen or green ammonia. India wants to emerge a major exporter of green hydrogen. Germany and Japan have already evinced interest in importing green hydrogen from India.

The second part of the National Hydrogen Policy, which is under the consideration of the Expenditure Finance Committee (EFC), the government will look at issues related with viability gap funding (VGF) and for setting up mandates. These mandates will be for the replacement of grey hydrogen and ammonia with green hydrogen and ammonia. This will come out after the approval by the union cabinet, the minister said.

Green hydrogen

To encourage the use of green hydrogen, Singh, last year, announced that the government will bring green hydrogen under renewable purchase obligation (RPO), which essentially means that bulk buyers such as Discoms and captive users will have to buy a certain proportion of renewable energy (RE) out of their total power requirement. A similar mechanism will be created for hydrogen and it will be called hydrogen purchase obligation (HPO). HPOs are likely to become operational from 2023.

Hydrogen is a flexible energy carrier and can be used for many energy applications like integration of renewables and transportation. It is produced using RE and electrolysis to split water and is distinct from grey hydrogen, which is produced from methane and releases greenhouse gases. Energy can be extracted from hydrogen through combustion or through fuel cells, which emit only water as a by-product.

Besides, the government is also planning to blend 15 per cent green hydrogen with piped natural gas (PNG) for domestic, commercial and industrial consumption.

Published on February 16, 2022
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