Page 95 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

Hydrogen. The Ministry of New and Renewable Energy (MNRE, India) has been supporting a broad-
based R&D and demonstration programme on hydrogen energy and fuel. Banaras Hindu University,
IIT Delhi, and Mahindra & Mahindra are working on several key projects with respect to transportation.
This has resulted in development and demonstration of internal combustion-powered two wheelers,
three wheelers and mini buses that run on hydrogen fuel. Two hydrogen refuelling stations have
been established (one each at Indian Oil R&D Centre, Faridabad, and the National Institute of
Solar Energy, Gurugram.
Indian Oil Corporation Limited (IOCL) is ramping up capacities to supply hydrogen. At a virtual conclave
organised by Autocar Professional on ‘Meeting Emission Challenges’, Indian Oil chairman Mr. Shrikant IOCL would
Madhav Vaidya said, “Indian Oil is committed to the use of hydrogen, and we are doing a lot of research build India’s
in this particular aspect”. IOCL is likely to roll out 50 hydrogen fuel buses from its Haryana and Gujarat first green H2
refineries. Besides, IOCL has announced it would build India’s first green hydrogen plant at its Mathura plant (200–
400 tonnes
refinery (selected by virtue of its proximity to the Taj Trapezium Zone (TTZ). Its capacity would be per day
anywhere between 200 and 400 tonnes per day.
Green Hydrogen Policy
India has committed to net zero targets. Transition to green hydrogen and green ammonia is one
of the major requirements for reduction of emissions, especially in the ‘hard to abate’ sectors. The
Government of India has framed the policy on green hydrogen; we provide a lowdown:
• Green hydrogen/green ammonia shall be defined as hydrogen/ammonia produced by way of
electrolysis of water using renewable energy, which has been banked, and hydrogen/ammonia
produced from biomass.
• The waiver of inter-state transmission charges shall be granted for a period of 25 years to the
producer of green hydrogen and green ammonia from the projects commissioned before 30th
June 2025.
• Land in Renewable Energy Parks can be allotted for the manufacture of green hydrogen/green
ammonia. The Ministry
• The Government of India proposes to set up manufacturing zones. Green hydrogen/green of New and
ammonia production plant can be set up in any of the manufacturing zones. Renewable
• Manufacturers of green hydrogen/green ammonia shall be allowed to set up bunkers near ports Energy has been
supporting a
for storage of green ammonia for export/use via shipping. The land for the storage purpose shall broad-based
be provided by respective port authorities at applicable charges. R&D and
• In order to achieve competitive prices, the MNRE may aggregate demand from different sectors, demonstration
and has consolidated bids conducted for procurement of green hydrogen/green ammonia through programme on
any of the designated implementing agencies. hydrogen energy
• The MNRE will establish a single portal for all statutory clearances and permissions required for
manufacture, transportation, storage and distribution of green hydrogen/green ammonia. The
agencies/authorities concerned will be requested to provide clearances and permissions in a
time-bound manner, preferably within a period of 30 days from the date of application.
New Energy to drive investment, energy security

Thus, the combination of improving technology and India’s endowments of sun and sand are likely to
drive growth of new energy. This should result in significant investments, job creation and improvement
in productivity. Apart from that, it shall lower India’s fuel bill—the country’s Achilles heel in recent years.
93