The world is making frantic efforts to reduce global warming to less than 2 degrees Celsius — and if possible, bring down the temperature rise further down and cap it at 1.5 degrees Celsius above the pre-industrial times. In addition, many countries have committed to Nationally Determined Contributions for an energy transition from fossil fuels to Green Hydrogen.
Green Hydrogen, also called Clean Hydrogen, is produced using renewable energies such as solar or wind power. The production of Hydrogen is an energy-intensive process. It splits water into Hydrogen and Oxygen atoms through electrolysis. However, Hydrogen is a robust and transportable energy carrier. Furthermore, when burnt, it generates only water as a by product. On the other hand, Grey Hydrogen produced using Naphtha or Natural gas emits carbon.
After considerable thought, the Government of India has come up with its own Green Hydrogen/Green Ammonia policy. The major policy decision is waiving central surcharge and transmission charges on clean energy used to produce Hydrogen for 25 years.
The Government would allot lands in Manufacturing Zones and Renewable Energy Parks for Production units to produce Green Hydrogen. Moreover, there are a slew of other concessions and ease in approval through a single portal for making Green Hydrogen/ Green Ammonia through renewable energy.
India is already the third-biggest producer and consumer of Grey Hydrogen, produced using fossil fuels like Coal, Gas, and Petroleum products. The new policy on Green Hydrogen can make India into a massive Green Hydrogen Hub of the world.
The Director for Resource and Development of Indian Oil Corp (IOC), SSV Ramakumar, said that the policy would decrease the cost of manufacturing Green Hydrogen/ Green Ammonia by 40-50%.
We learn that IOC will soon set up Green Hydrogen plants at its Mathura and Panipat Refineries. Indeed it is a significant step by the oil major, materializing its aims to replace carbon-emitting units with Green Hydrogen units.