The government has laid out its road map for the first phase of the much-awaited green hydrogen policy. The policy wants to boost the production of green hydrogen and green ammonia with an aim to help the country meet its ambitious decarbonisation targets. With an ever-increasing oil and gas import bill, green hydrogen is also crucial for India’s energy security.

The policy touted as a game-changer aims to transform India into the global hub for green fuel.

To help decarbonise Indian industry, the green hydrogen policy provides for the waiver of inter-state transmission charges for a period of 25 years and a banking provision of up to 30 days, which will help reduce the cost of green hydrogen and replace grey hydrogen with green.

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The power ministry will also set up a single -window-clearance portal for all clearances and give priority access to green hydrogen projects.

It is estimated that by 2050, nearly 80 percent of India’s hydrogen will be green, produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030. This in turn is going to be driven by a potential decline in production costs and in the reduction in costs of clean energy technologies such as solar PV and wind turbines.

As per an Edelweiss report, new energy is a $10 billion opportunity for India. According to experts to unlock the full potential demand for hydrogen, India needs to invest in continuous innovation, by increasing R&D budgets, and support for demonstration projects to make sure key hydrogen technologies reach commercialisation as soon as possible.

To discuss this CNBC-TV18’s Shereen Bhan spoke to Mohit Bhargava, Head - Renewable Energy at NTPC; Derek Michael Shah, Head Green Energy Biz at L&T; and Gaurav Moda, Partner, Energy Sector Leader at EY.

For full interview, watch accompanying video

Also Read | Need policies to promote green hydrogen and reduce oil and gas imports: Assocham

First Published:Apr 6, 2022 7:20 PM IST