India unveils interim renewable hydrogen/ammonia policy

India released an interim hydrogen/ammonia policy Feb. 17 aimed at the production of 5 million mt of renewable hydrogen by 2030, the Power Ministry said in a notification.

A spokesperson from the Ministry of New and Renewable Energy (MNRE) said a more comprehensive hydrogen policy was under examination for release at a later date.

"The implementation of this policy will provide clean fuel to the common people of the country... this will reduce dependence on fossil fuel and also reduce crude oil imports," the Power Ministry said.

"The objective is also for our country to emerge as an export hub for green hydrogen and green ammonia," it said.

Producers of renewable hydrogen and ammonia are to be granted open access within 15 days of an application to the most competitive renewable power on offer.

Producers would be allowed to "bank" unconsumed electricity for up to 30 days with the relevant distribution company, giving flexibility of use.

A single portal for these transactions is to be set up by MNRE.

Projects commissioned before June 30, 2025 will not have to pay interstate transmission charges for 25 years. Further, they would be granted priority when seeking connection to the grid.

Bunkers at ports

Manufacturers of renewable hydrogen or ammonia are to be allowed to establish bunkers near ports for storage and export using land provided by port authorities, the notification said.

In order to achieve competitive prices, meanwhile, MNRE may aggregate demand from different sectors and conduct consolidated bids for procurement of renewable hydrogen, it said.

Officials from the Solar Energy Corporation of India (SECI) have said the scope of its operation is to be widened to include hydrogen and hybrid power projects.

S&P Global Platts assessed Victoria hydrogen produced via alkaline electrolysis at $4/kg Feb. 16, up 88% from a month ago.

Japan hydrogen produced via alkaline electrolysis was assessed at $11.95/kg Feb. 17, up 15% from a month ago.

Australia's carbon neutral hydrogen ex works was assessed by Platts at $4.45/kg Feb. 17, up 46% from a month ago.

Compulsory purchase obligation missing

The notification lacked detail on compulsory purchase obligations on oil and fertilizer producers that have been expected based on ministerial statements in recent months.

"It will be important to build upon the first phase and [for] the government to subsequently come up with policy measures for initial demand creation by means of mandatory green hydrogen and ammonia purchase obligations," Manoj K Upadhyay, Founder & Chairman of ACME Group told Platts in an email.

ACME has a pilot renewable hydrogen plant in Rajasthan.

Upadhyay said a production-linked incentive (PLI) scheme similar to the one supporting domestic solar component producers would be needed for clean hydrogen producers.

Large industrial houses such as Reliance Industries and Adani have announced investments in renewable energy and hydrogen while state-run Indian Oil and NTPC have floated tenders for electrolysis plants.

Reliance Industries chairman Mukesh Ambani has said a cost of $2/kg for renewable hydrogen could be achieved before 2030.

India's National Hydrogen Mission was announced by Prime Minister Narendra Modi in August last year.

At the United Nation's COP26 meeting in Glasgow in November 2021, India said it aimed to source 50% of its energy needs from renewable sources by 2030 and have 500 GW of renewable capacity installed by then. A net-zero target was announced for 2070.