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National Hydrogen Mission policy: Part I

  • Vaid's ICS, Lucknow
  • 21, Feb 2022
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Why 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.

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.


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.

Facts for Prelims :

India’s first water taxi service

In News

  • India’s first water taxi service was inaugurated in Maharashtra.

Key Facts

  • The ?8.37-crore project has shared expenditures from the State and Centre and will currently operate in three routes.
  • The three routes include
    • Belapur to Ferry Wharf (the domestic cruise terminal)
    • Belapur to Elephanta Caves
    • Belapur to JNPT
  • It will provide faster connectivity between Mumbai and Navi Mumbai.