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India outlines policies to drive green hydrogen production

India has set out a raft of new policies designed to drive investment in green hydrogen projects as it targets production of 5mn t/yr by 2030 and aims to position itself as an export hub.

The set of “major policy enablers” is the government’s first detailed statement on green hydrogen since prime minister Narendra Modi outlined a “national hydrogen mission” in August last year.

“The implementation of this policy will provide clean fuel to the common people of the country. This will reduce dependence on fossil fuels and also reduce crude oil imports. The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia,” the government’s ministry of power says.

New policies include a waiver of interstate transmission charges for green hydrogen and ammonia projects commissioned before 30 June 2025. Renewable power projects for use by green hydrogen and ammonia producers “shall be given connectivity to the grid on priority basis to avoid any procedural delays”, the government says.

“The objective also is for our country to emerge as an export hub for green hydrogen and green ammonia” Indian Ministry of Power

The new policies also allow licensed power distributors to buy electricity for use by green hydrogen producers at “concessional prices”, which will include only the cost of procurement, power-wheeling charges and a small margin as determined by the State Commission.

Green hydrogen and ammonia producers will also be granted free access to buy electricity on power exchanges or develop renewable capacity themselves or via another company. “Open access will be granted within 15 days of receipt of application,” the government says.

Producers will also be allowed accesss to storage facilities close to ports on land provided by respective port authorities at “applicable charges”.


Author: Stuart Penson