India Aims a New Height in Transition to Green Hydrogen and Ammonia With Its New Policy

Currently, the whole world is in the mid of a transition towards sustainable alternatives for energy due to growing environmental concerns, climate change, and global warming. India is also planning to shift towards clean energy. India has set its eye on 2047 to become energy independent and thus increase the use of renewable energy in all spheres. In 2022 Government of India launched a Green Hydrogen and Ammonia Policy that aims to boost the domestic production of Green Hydrogen to 5 Metric Tons Per Annum by the year 2030.

Andhra Pradesh government has been playing an important role in supporting the Government of India’s policy for clean energy. It has been rolling out several initiatives in the energy domain, such as investor-friendly solar and wind power policies. Recently Andhra Pradesh being an excellent location for plants due to its abundance of Natural resources and direct access to 6 ports, has launched a Green Hydrogen and Green Ammonia Policy with a target to produce 0.5 MTPA of Green Hydrogen and 2 million tons per Annum of Green Ammonia. This policy also aims to make India “an export hub” for this clean fuel. The policy implementation responsibility will rest with the New and Renewable Energy Development Corporation of Andhra Pradesh, acting as the central agency. This policy will be known as Andhra Pradesh Green Hydrogen/ Green Ammonia policy-2023 and will be in effect for the next five years or till a new policy is issued. Andhra’s Green Hydrogen and Green Ammonia policy also aims at generating 12000 jobs in the state for each million tons per annum. Currently, the state has a demand of approximately 0.34 million tons per annum of Green Hydrogen, primarily from the nitrogenous fertilizer sector.

Under this policy, the Andhra Pradesh government highlights various pathways to produce Green Ammonia and Green Hydrogen through captive routes, open access to co-located and non-co-located renewable energy plants, third-party sales, and procurement from sale distribution companies. To encourage investment in this policy, the government has offered several investments, including reimbursement of transmission charges, allocation of government land at favorable rates, eligibility for existing industrial incentive programs, priority grid connectivity, reimbursement of state goods and services tax, and access to central government incentives. Another important benefit of this policy is that renewable energy used to generate Green Hydrogen or Green Ammonia will get a waiver in electricity duty for the next five years from the date of commissioning.

In Conclusion, Andhra Pradesh Green Hydrogen and Green Ammonia Policy is a significant step towards promoting clean energy in the state. With its ambitious targets, favorable incentives, and focus on job creation, the policy is expected to contribute to India’s overall goal of achieving energy independence and reducing long-term carbon emissions.