The Central Government issued notifications for the Green Hydrogen Policy and the Green Ammonia Policy.
The government hopes to achieve 5 million tonnes of domestic green hydrogen generation by 2030 as a result of this program, which will be implemented in phases. The government’s long-term goal is to turn India become a net exporter of clean energy sources. Green hydrogen is created by distilling water. Water is broken down into hydrogen and oxygen during this process. This ambition of the government would be realized through the establishment of ‘Green Hydrogen’ facilities at the country’s main petroleum business Indian Oil Corporation (IOCMathura )’s and Panipat refineries by 2024, which will replace the carbon emission units.
The business feels that the newly announced Green Hydrogen Policy is an essential step from the perspective of the energy transition and will aid in the reduction of costs associated with the shift. SSV Ramkumar, Director of Research and Development at the International Olympic Committee, claims that the new regulation would reduce the cost of creating green hydrogen by 40-50 percent. According to him, “this strategy will show to be the most significant ‘positive’ for the creation of green hydrogen.”
Hydrogen gas is employed in the production of petroleum and fertilizer
Hydrogen is used as a fuel in the production of finished products by petroleum refineries, fertilizer plants, and steel mills, among other industries. Hydrogen is used in refineries to eliminate sulfur that has accumulated in gasoline and diesel. At the moment, hydrogen is created from fossil fuels such as natural gas or naphtha, which results in the release of greenhouse gases.
IOC is concentrating on the usage of clean hydrogen
The International Olympic Committee (IOC) intends to replace this ‘grey hydrogen’ with ‘green hydrogen,’ also known as ‘clean hydrogen.’ In this process, energy is obtained from renewable sources such as solar or wind, and water is divided into two hydrogen atoms and one oxygen atom by the electrolysis of the water molecules.
The cost of a kW at the production center is Rs 2 per kW
When it comes to renewable energy, Ramkumar explained that the “primary cost of renewable energy at Rs 2 per kilowatt (or per unit) is really the cost of the producing site” (in solar farms in Rajasthan or Ladakh, etc.). It is subject to a variety of fees when it is transported over transmission lines to various states. After then, the price per unit increases to between Rs.4 and Rs.7. At the same time, the current gray hydrogen price is just Rs 150 per kilogram, which is a significant saving.
Renewable energy sources will be exempted from the need to produce green hydrogen
According to the hydrogen policy released on February 17, open use of renewable energy for the generation of green hydrogen would be exempt from taxation, and there will be no central fee and no inter-state transmission price, among other benefits. This facility will be accessible for projects that will begin before June 30, 2025, and will be completed by June 30, 2025. According to Ramkumar, this will have a significant impact on lowering the cost of green hydrogen generation by 40 to 50 percent.
