Nod to freewheeling of renewable energy to promote carbon-free fuel

New Delhi, February 17

The government on Thursday allowed free inter-state 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 make India an export hub.

Unveiling the first part of the much-awaited National Hydrogen Policy, Power and New and Renewable Energy Minister Raj Kumar Singh said the government is targeting production of 5 million tonnes of green hydrogen by 2030.

Oil refineries to steel plants require hydrogen to produce finished products. This hydrogen currently is generated using fossil fuels such as natural gas or naphtha. While hydrogen per se is carbon-free, the use of fossil fuels results in carbon emissions.

Green hydrogen — also referred to as ‘clean hydrogen’ — is produced by using electricity from renewable energy sources, such as solar or wind power, to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis. The hydrogen thus produced is used in the manufacturing process and oxygen is released into the atmosphere or bottled and sold to hospitals and industries that need it. A similar process also helps produce green ammonia.

“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,” Singh said.

The government, he said, is taking various measures to facilitate the transition from fossil fuel/fossil fuel-based feedstocks to green hydrogen/green ammonia.

In the second phase of the policy, the government would mandate the usage of green hydrogen and green ammonia by plants in a phased manner. — PTI

National Hydrogen Policy unveiled

• Under the policy, companies will have the liberty to set up capacity to generate electricity from renewable sources such as solar or wind anywhere in the country
• This electricity will be allowed to be wheeled, free of cost through open access of the transmission grid, to the plant where hydrogen is to be produced
• The government will also allow banking or storage of excess green hydrogen produced by any company for up to 30 days, in case of capacities which are set up before 2025