In News
- Recently, the Ministry of Power notified the first part of the National Hydrogen Mission policy on green hydrogen and green ammonia
Major Highlights of the policy
- Green Hydrogen / Ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer, anywhere.
- Open access will be granted within 15 days of receipt of the application.
- The Green Hydrogen / Ammonia manufacturer can bank his unconsumed renewable power, for up to 30 days, with the distribution company and take it back when required.
- Distribution licensees can also procure and supply Renewable Energy to the manufacturers of Green Hydrogen / Green 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.
- Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before 30th June 2025.
- The manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on a priority basis to avoid any procedural delays.
- The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen/Ammonia manufacturer and the Distribution licensee for consumption of renewable power.
- Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export/use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.
Benefits linked to it
- 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 green hydrogen and green ammonia is one of the major requirements towards environmentally sustainable energy security of the nation.
- The government of India is taking various measures to facilitate the transition from fossil fuel/fossil fuel-based feedstocks to green hydrogen / green ammonia.
- The implementation of this Policy will provide clean fuel to the common people of the country.
- This will reduce dependence on fossil fuels and also reduce crude oil imports.
- The policy promotes Renewable Energy (RE) generation as RE will be the basic ingredient in making green hydrogen.
- This in turn will help in meeting the international commitments for clean energy.
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About National Hydrogen Mission
- It was proposed in the Union Budget 2021.
- The government’s aim is to make India a global hub for the production and export of green hydrogen.
- Green hydrogen energy is vital for India to meet its Nationally Determined Contributions.
- It is a clean-burning molecule, which can decarbonise a range of sectors including iron and steel, chemicals, and transportation.
- The initiative has the potential of transforming transportation.
- 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.
Major Activities to be carried out under the Mission
- Creating volumes and infrastructure
- Demonstrations in niche applications
- Goal-oriented Research & Development
- Facilitative policy support
- A robust framework for standards and regulations for hydrogen technologies
Need and Significance of the Mission
- Clean and More Efficient
- Hydrogen is the lightest element and produces water on combustion.
- It is about 2-3 times more efficient than burning petrol.
- Transportation Sector Transformation
- The transportation sector is one of the most polluting industries.
- It contributes nearly 1/3rd of all greenhouse gas emissions.
- Hydrogen fuel cell cars have a near-zero carbon footprint.
- Thus, it can help India in achieving its emission goals under the Paris Agreement
- Hydrogen Fuel cells are better than Battery electric vehicles.
- They enable a refuelling time of just 5 minutes, compared to 30-45 minutes of charging for a Battery operated Electric Vehicle.
- Also, cars get better energy storage per unit volume and weight, freeing up a lot of space for other things.
- It is also effective for sectors that cannot be electrified like shipping and air travel.
- Storage option for Solar and Wind Energy
- Renewable energy that cannot be stored or used by the grid can be channelled to produce hydrogen.
- Encountering Chinese Hegemony in Rare Earth Mineral
- Hydrogen Fuel has the potential to reduce India’s demand for rare earth minerals used in the manufacturing of batteries for electric vehicles.
- Energy from Waste
- Bio and plastic waste can be converted into hydrogen.
- It will help to combat twin problems of waste management and energy security.
- Reducing India’s Current Account Deficit (CAD)
- India imports 85% of its oil and 53% of its gas demand.
- Green hydrogen has the potential to reduce import dependency on fossil fuels.
- Addressing uncertainty in global energy markets
- Due to instability in the Gulf Region, there is often a spike in crude oil prices impacting Indian Energy security.
What is Hydrogen Fuel?
- Hydrogen fuel is a zero-emission fuel burned with oxygen.
- It can be used in fuel cells or internal combustion engines.
- It is also used as a fuel for spacecraft propulsion.
- It can be manufactured by
- electrolysis of water by using direct current.
- Natural Gas Reforming/Gasification:
- Natural Gas on reaction with steam produces Synthesis gas.
- Synthetic gas is a mixture of hydrogen, carbon monoxide, and a small amount of carbon dioxide.
- Fermentation: Biomass is converted into sugar-rich feedstocks that can be fermented to produce hydrogen.
- It is then stored after mixing or converting to ammonia or synthetic gas for easy liquefaction and transport.
Types of Hydrogen Fuel
- Grey Hydrogen:
- Manufactured using Natural Gas without carbon sequestration
- Brown Hydrogen:
- Manufactured using Coal without carbon sequestration.
- Blue Hydrogen:
- Manufactured using Natural Gas with carbon sequestration.
- Green Hydrogen:
- Manufactured using Renewable Energy.
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Source: PIB
