India steelmakers welcome government green hydrogen policy

India’s steel industry has welcomed the power ministry’s announcement of a Green Hydrogen Policy to facilitate production of green hydrogen green ammonia using renewable sources of energy.

The move is part of India’s National Hydrogen Mission, announced on 15 August 2021 and aimed at making India a green hydrogen hub with 5 million tonnes/year green hydrogen production by 2030.

Hydrogen and ammonia are envisaged as future fuels to replace fossil fuels in steel production, Kallanish notes. Under the policy, green hydrogen/ammonia manufacturers can purchase renewable power from the power exchange or set up renewable energy capacity themselves or through a developer, anywhere. Also, the manufacturer can bank his unconsumed renewable power with the distribution company for up to 30 days, and take it back when required.

“We welcome the Green Hydrogen Policy, which demonstrates the Government’s firm commitment towards decarbonisation efforts and making India a green hydrogen hub,” says India Steel Association president and AMNS India chief executive Dilip Oommen.

“This policy will give further impetus to promote cleaner and greener energy, bridge the gap between demand and supply to improve availability, and is a step in the right direction to ensure availability at a competitive price. I am confident that the steel sector will benefit from this policy and will contribute significantly to our climate change efforts,” Oommen adds.

The policy will also grant incentives for renewable purchase obligation (RPO) to manufacturers and distribution licensees for the consumption of renewable power.

To promote green energy production, the ministry will waive inter-state transmission charges for 25 years to manufacturers in projects commissioned before 30 June 2025. The manufacturers will be given connection to the grid on a priority basis to avoid any procedural delays.

Manufacturers of green hydrogen/green ammonia will be allowed to set up bunkers near ports for storage of green ammonia for export. The land for storage will be provided by the respective port authorities at applicable charges.

The ministry will also grant open access to the applicant within 15 days of the receipt of the application. The policy will enable a single portal for carrying out all the activities, including statutory clearances set up by the new and renewable energy ministry.

Sayed Aameer India