To step up its game in the global transition towards a carbon neutral future, the government of India has unveiled its hydrogen roadmap in the form of a national green hydrogen policy. The announced first part of the policy concerns investors, potential manufacturers, generation companies and distribution licensees, and offers them incentives to produce green hydrogen at a low cost and shift the nation away from its reliance on fossil fuels. A full waiver of inter-state transmission charges for 25 years is being offered, provided the projects are commissioned before 30th June, 2025. This policy focuses on constructing renewable energy parks and mega manufacturing zones, and providing connectivity to the grid on priority basis to avoid the procedural delays. India, with a population three times larger than the European Union, has set a target to manufacture five million tonnes of green hydrogen by 2030, which is half of the target set by the EU. The second part of this policy, though not announced yet, is likely to mandate the use of green hydrogen and green ammonia for refining and fertilizer companies. The aim of this policy is to establish India as an export hub for green hydrogen. Implementation of this policy will provide clean fuel to the people of the country, which will in turn reduce dependence on fossil fuels and decrease crude oil imports. Shifting to large-scale production and usage of hydrogen will strengthen India’s geopolitical heft and reinforce energy security.
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