Government unveils green hydrogen and ammonia policy for clean energy

The government on Thursday notified the green hydrogen and ammonia policy in which it offers ammonia manufacturers to purchase renewable power from the power exchange.

Published: 18th February 2022 09:29 AM  |   Last Updated: 18th February 2022 09:29 AM   |  A+A-

Representational image for clean energy

Express News Service

NEW DELHI:  The government on Thursday notified the green hydrogen and ammonia policy in which it offers ammonia manufacturers to purchase renewable power from the power exchange. The policy grants open access or permission to power plants to procure electricity within 15 days. It also allows ammonia manufacturers to conserve their unconsumed renewable power for up to 30 days.

“The mission aims to aid the government in meeting its climate targets and making India a green hydrogen hub. This will help in meeting the target of production of 5 million tonnes of green hydrogen by 2030 and the related development of renewable energy capacity,” said a government statement. 

The government said 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. 

Experts welcomed the policy and said this is the first step in the direction of creating a favourable regulatory and enabling environment for the green hydrogen and ammonia sector. “The government has tried to address some of the key demands of the industry in terms of open access, grid banking and faster approvals for green hydrogen and ammonia projects. We specifically welcome the provisions to set up bunkers near ports for the export of green ammonia,” said Manoj K Upadhyay, Chairman of ACME Group.

Benefits under policy

  • Plants will get access to procure electricity from renewable sources within 15 days
  • Ammonia manufacturers can conserve their unconsumed renewable power for up to 30 days
  • Waiver of inter-state transmission charges for projects commissioned before June, 2025


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