The government of India recently unveiled the first part of the much awaited National Hydro policy power and new and renewable energy minister RK Singh said the government is targeting production of 5 million tons of green hydrogen by 2030. The policy allows free interstate wheeling of renewable energy used in the production of green hydrogen and ammonia as it seeks to boost usage of the carbon-free fuel and also make India an export hub.
It also offers 25 years of free power transmission for any new renewable energy plants set up to supply power for green hydrogen production before July 2025. There will also be a single portal for all clearances required for setting up green hydrogen production as well as a facility for producers to bank any surplus wearable energy generated with discounts for up to 30 days and use it as required. So these are some broad contours of phase one of the policy.
Benefits of green hydrogen
But how is it going to benefit producers of green hydrogen? How will it boost India’s energy security and also make India the hub of green hydrogen global? How will it help us achieve the net-zero emission targets? These are some of the aspects that we will be discussing today.
This is a great step for achieving net-zero by 2070. Hydrogen is one important and now announced green hydrogen and green ammonia. Green ammonia is usually used to buy industries, especially refineries and ammonia production for fertilizers and other industries. Ammonia is a vector energy vector. Ammonia super hydrogen-producing from radiation energy sources like solar photogeneration is again put into ultrahizer with water and producing hydrogen.
Then from the hydrogen again from the nitrogen reacting hyperbole process producing ammonia. One road but the challenges of hydrogen how to store it. So that needs more energy. Now the ammonia option is there. So then ammonia can access energy vector means easily store and transport it. This is one great opportunity for exporting hydration to other countries rather than liquified hydration or gases hydration or hydride.
That is another root is there. But this is another one. Another one ammonia industry event. Every kg of ammonia uses the production of ammonia one kg and around two kg of civil emissions coming from the industry. So this is a great opportunity for the usage of green hydrogen. The main point is that the cost of hydrogen is now regular energy. Because a revolution happened in this country.
The Advantages of green hydrogens are:
- Green hydrogen is produced from renewable energy sources.
- Green hydrogen stabilises the electricity and heat supply.
- Green hydrogen is versatile and can be used innovatively.
- Green hydrogen reduces CO₂ emissions.
Rs2 per unit of power
It is coming around Rs2 per unit of power. The authorizer needs around 50 units of power. Still is RS100 of onsite hydration is possible again at risk efficiency increases again it will cost what we are targeting. One dollar of the price of hydration costs around Rs70 is possible. But today is around $3 to $6. Then in the future, it will be coming down. This is a great one amoreas linked with hydration. And whenever talking to edible energy, hydrogen is integrated. One whenever portion energy is talking that carbon capture storage is a mandatory the similar way radiation energy talking that hydrogen is embedded because of energy storage the medium of hydrogen. Now hydrogen embedded with ammonia. Okay so now three together integrated and we use hydrogen and green ammonia for many purposes SSL industry need electricity and heat and the heat also can be sourced by hydrogen. The steel industry needs coal. Coal can be replaced with hydrogen in the future if hydrogen is produced by surplus and affordable price. So industry also can explore much waste using hydrogen and green ammonia for many purposes.
That really lots of incentives have been announced for producers. The natural hydrogen mission was announced in 20 21, 20 22. We are seeing phase one of the policy being unveiled and lots of incentives to entice all the investors, the producers of green hydrogen to not just increase production in the country itself but also make India the export hub of green hydrogen. In this global rush, we need to become the leader. So towards that aspect, looking at the kind of contours that phase one of the policy has announced, do we see it as a policy direction particularly to the investors in mapping out future investments for this particular sector and also to the producers to now go ahead and plan the logistics?
We can compare today’s situation with the situation in the solar industry or about the solar policy. In 2010 means about ten years back we were in a similar situation. The government incentives or government initiatives and the directions were set by the government at that time that has taken the direction to the solarization which we are seeing today. And in the due course, the industry also responded to the government and they entered the rate of the solar power which we were getting at that time, and what we are getting is all because of the government initiatives at that time and response by industry on the same line. Whatever the policy that has come up or that we are talking about. So it is similar and whatever the initiations or incentives that have been given in the policy, we are sure that what we are aiming for after ten years means we are aiming for something. So we are sure that the policy which the first phase of policy that has come up will benefit the stakeholders who are there but we are particularly happy that the government has considered renewable energy input for all.
This process means solar and wind will have a boost because of this policy and we are happy about that hydrogen-producing.
Green hydrogen is described as the fuel of the future
Green hydrogen is described as the fuel of the future. How do we look at this phase? One of the green hydrogen policies that the government has unveiled recently. Is it going to be a game-changer especially when it comes to ensuring the energy security of India?
If we look at the Prime Minister’s commitment whether it was in Glasgow or the hydrogen policy it is something that he has made those commitments on behalf of every Indian. So really speaking he has confidence that this can be achieved and then it is forward-looking because it is not only that this much by 2030 50% will be renewable and by 2070 will be net-zero as the government is also working in that direction that what steps should be taken out. So it’s great but then it is not for all kinds of industries and hydrogen it’s going to be much cheaper, much cleaner and therefore there has to be an emphasis on doing or bringing hydrogen to the country and also export hydrogen if possible. So the commitment, as well as actions, clearly show that one is moving in that direction. It’s very important because the industry also gets a sort of confidence that this is going to continue so, therefore, they will be willing to make investments and I’m very happy to inform last week we have world sustainable development summit which was inaugurated by the Prime Minister. So there also he mentioned the role of hydrogen and very well said.