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1. Hydrogen Mission 2021 and
Green Hydrogen Policy 2022
By
Prof. (Dr) ANIL KUMAR
Energy & INFRA
School of Business,
UPES Dehradun

2. Prof. (Dr.) Anil Kumar,
Prof. & Ex. HOD, Energy Mgt,
B.Sc. Engineering (Electrical), M.Tech. (Energy & Environment
Management), IIT Delhi. PhD in Power Economics (Private Participation in
UMPP in India) Certified National Energy Auditor & Manager,
MBA(Operation Management), MBA (Finance Management), M.Com (Finance),
MA Economics, PGD in HRM, PGD in Personal Management, PGD in
International Business, PGD in Marketing Management, PGD in Insurance
Management, PGD in Urban Planning & Development, Diploma in Transport
Economics & Management, Diploma in Multi Modal Transportation, PGD in
Environment and Sustainable Dev, PGD in Urban Planning & Dev, PGC in
Project Management, Adv. Certificate in Power Distribution Management
Total professional experience 42 years
Teaching experience 19 years
Industrial experience 23 years

3. National Hydrogen Mission 2021
(Ministry of New and Renewable Energy)
India’s honorable Prime Minister, Shri Narendra Damodar Das Modi, on August 15 2021 quoted
the announcement of National Hydrogen Mission saying,
“Of every effort being made by India today, the thing that is going to help India with a quantum
leap in the terms of climate is the field of Green Hydrogen. To achieve the goal of Green
Hydrogen, I am announcing the National Hydrogen Mission today with this Tricolor as a witness”
-Prime Minister Narendra Modi(1)
(75TH Independence Day address from the Red Fort, 15 Aug 2021)

5. Proposal and the brief on the sources of Hydrogen:
In the Budget Speech 2021-22, Finance Minister Nirmala Sitharaman proposed to launch a
National Hydrogen Mission for generating hydrogen from green power sources. She highlighted
the Prime Minister’s address at the 3rd RE-Invest Conference in November 2020, held at Delhi
where she had announced plans to launch a comprehensive National Hydrogen Energy
Mission(2). Hydrogen, like electricity, is an energy carrier that must be produced from another
substance. Hydrogen can be produced—separated—from a variety of sources including water,
fossil fuels, or biomass and used as a source of energy or fuel.
• Hydrogen has the highest energy content of any common fuel by weight (about three times
more than Gasoline or Petrol), but it has the lowest energy content by volume (about four
times less than gasoline).(3)
1 https://pib.gov.in/PressReleasePage.aspx?PRID=1746062
2 https://pib.gov.in/PressReleasePage.aspx?PRID=1696498
3 https://www.eia.gov/energyexplained/hydrogen/

6. Aims of the Mission(4):
• The National Hydrogen Energy Mission aims to lay down the vision, intent and direction for
taping Hydrogen Energy by the government of India.
• The aim is to develop India as the global manufacturing hub of Hydrogen and fuel cell
technology across the value chain.
• The Mission would offer specific strategy for the short term (4 years) and broad stroke
principals for long term (10 years or beyond)
• It will provide necessary flexibility to take benefits of the evolution taking place in the
technological landscape.
• The Government of India will facilitate demand creation in identified segments. The areas
include suitable mandates for use of green hydrogen in industry such as fertilizer, steel,
petrochemicals etc.
• Major activities envisaged under the mission include creating volumes and infrastructure;
demonstrations in niche applications including transport and industry; goal-oriented research
& development; facilitative policy support; and placing a robust framework for standards and
regulations for hydrogen technologies.

7. • The mission aims to aid the government in meeting its climate targets and making India a green
hydrogen hub. This will help in meeting the target of production of five million tons of Green
hydrogen by 2030 and the related development of renewable energy capacity.(5)
Green Hydrogen and Green Ammonia Policy: A key step in National Hydrogen
Mission:
Hydrogen and Ammonia are said to be the future of the fuels and are envisaged to replace fossil
fuels in the years to come. One of the major requirements of environmentally sustainable energy
security of the nation is production of these fuels by using power from renewable energy
sources. This is known as Green Hydrogen and Green Ammonia.(6)
3 https://www.eia.gov/energyexplained/hydrogen/
4 https://pib.gov.in/PressReleasePage.aspx?PRID=1696498
5 https://pib.gov.in/PressReleasePage.aspx?PRID=1799067
6 https://pib.gov.in/PressReleasePage.aspx?PRID=179906

8. There is an increased consensus around the world for taking concrete steps to reduce global
warming to levels less than 2°C and if possible to cap it at 1.5°C higher than pre-industrial levels.
Various countries have pledged their Nationally Determined Contributions in order to ensure
energy transition and reduce emissions. Most large economies including India have committed to
net zero targets by 2070.
Transitioning to Green Hydrogen and Green Ammonia is one of the major requirements for
reduction of emissions. Number of policy measures are under consideration in order to facilitate
the transition from fossil fuel / fossil fuel-based feed stocks to Green Hydrogen / Green Ammonia
both as energy carriers and as chemical feed stock for different sectors. In regard of which Green
Hydrogen policy has been framed by Ministry of Power for compliance and implementation by
concerned stakeholders.
Hydrogen Energy(7):
Hydrogen is developing as an important source of energy since it has zero carbon content and is
non-polluting source of energy in contrast to hydrocarbons that have net carbon content in the
range of 75 to 85 %. Hydrogen energy is expected to reduce carbon emissions that are set to
jump by 1.5 billion tons in 2021.

9. As per International Renewable Energy Agency (IRENA), Hydrogen shall make up six per cent of
total energy consumption by 2050. The Hydrogen Council Report, 2021 also mentions that,
global investments on hydrogen will constitute around 1.4 per cent of the total global energy
funding by 2030.
The current global demand for hydrogen is 70 million metric tons per year, more than 76% of it is
being produced from Natural Gas, 23% from coal and the remaining is produced from electrolysis
of water.
Comparing Grey Hydrogen, Blue Hydrogen, Green Hydrogen:
Hydrogen is primarily used in petrochemicals and fertilizer industry and is produced largely from
natural gas, thereby emitting enormous amounts of carbon dioxide. Depending on the nature of
the method of its extraction, hydrogen is categorized into three categories, namely, grey, blue
and green. There is a growing focus on increasing production of green and blue hydrogen due to
its no carbon emission and use of carbon offset technology, respectively. Along side many leading
organizations are exploring technologies to convert bio and plastic waste into Hydrogen, thereby
providing a huge scope for investment in this technology which can combat India’s twin problems
of waste management and energy security.(8)

11. Where the hydrogen comes from:
At the moment, it’s mainly produced industrially from natural gas, which generates significant
carbon emissions. That type is known as “grey” hydrogen. A cleaner version is “blue” hydrogen,
for which the carbon emissions are captured and stored, or reused. The cleanest one of all is
“green” hydrogen, which is generated by renewable energy sources without producing carbon
emissions in the first place.(9)
Role of Green Hydrogen in India moving towards a cleaner future:
• India has a huge advantage in green hydrogen production because of its favorable
Geographical conditions and the presence of abundant natural elements.
• The government has supported in expanding the gas pipeline infrastructure across the length
and breadth of the country and has introduced reforms for the power grid, including the
introduction of smart grids. Such steps are being taken to effectively integrate renewable
energy into the present energy mix.
• With appropriate capacity addition to renewable power generation, storage and transmission,
producing green hydrogen in India can become cost-effective which will not only guarantee
energy security but also ensure self-sufficiency gradually.(10)

12. • Setting the right priorities for hydrogen use will be essential for its rapid development and
long-term contribution to decarbonization efforts. Hydrogen is part of a much bigger energy
transition picture, and its development and deployment strategies should not be considered in
isolation.
• A shift to large-scale use of hydrogen fuel can help strengthen India’s Geopolitical heft and
support energy security. More than 30 countries and regions have hydrogen strategies that
include import or export plans, indicating that cross-border hydrogen trade is set to grow
considerably.
8 https://newsonair.com/2021/02/17/national-hydrogen-mission-advancing-towards-indias-cleaner-future/
9 https://www.iea.org/commentaries/the-clean-hydrogen-future-has-already-begun
10 https://newsonair.com/2021/02/17/national-hydrogen-mission-advancing-towards-indias-cleaner-future/
Various uses of Hydrogen(11):

13. • Hydrogen use today is dominated by industry, namely: oil refining, ammonia production,
methanol production and steel production. Virtually all of this hydrogen is supplied using fossil
fuels, so there is significant potential for emissions reductions from clean hydrogen.
• In transport, the competitiveness of hydrogen fuel cell cars depends on fuel cell costs and
refueling stations while for trucks the priority is to reduce the delivered price of hydrogen.
Shipping and aviation have limited low-carbon fuel options available and represent an
opportunity for hydrogen-based fuels.
• In buildings, hydrogen could be blended into existing natural gas networks, with the highest
potential in multifamily and commercial buildings, particularly in dense cities while longer-term
prospects could include the direct use of hydrogen in hydrogen boilers or fuel cells.
• In power generation, hydrogen is one of the leading options for storing renewable energy, and
hydrogen and ammonia can be used in gas turbines to increase power system flexibility.
Ammonia could also be used in coal-fired power plants to reduce emissions.
Hydrogen: The Indian Context(12):

14. Hydrogen for integrating Renewable Energy
Hydrogen provides a means for storage of variable renewable energy for stabilizing its output.
For long duration storage, running into several hours, converting excess available energy into
hydrogen and utilizing it for grid support and other applications is seen to be a suitable
alternative.
Hydrogen in Industry
In industry, hydrogen can potentially replace the coal and coke in iron and steel production. Steel
manufacturing is one of the largest carbon emitters in the world, decarbonizing this sector using
hydrogen is expected to have significant impact on our climate goals.
Hydrogen has potential to reduce fossil fuel import
At present, hydrogen produced from natural gas is widely utilized for production of nitrogenous
fertilizers, and petrochemicals. Substituting this with green hydrogen could allow use of
renewable energy in these important sectors and reduce import dependence.

15. • India’s annual Ammonia consumption for fertilizer production is about 15 million tonnes,
roughly 15 per cent of this demand (over 2 million tonnes per annum) is currently met from
imports. Mandating even 1 per cent green ammonia share is likely to save about 0.4 million
standard cubic feet per day of natural gas import.
• Use of hydrogen in steel industry could substitute imported coking coal. During 2018-19, the
total demand of coking coal for the steel industry was 58.37 million tonne (MT). Out of this,
51.83 MT was met through imports.
Hydrogen-based Transport
Fuel cell electric vehicles (FCEVs) run on hydrogen fuel and have no harmful emissions.
Battery Electric Vehicles (BEVs) may be suitable for light passenger vehicle segment for
shorter driving range. For heavy duty vehicles with longer trip range, such as buses, trucks and
other commercial vehicles, FCEVs are likely to become cost competitive in the coming years.
11 https://www.iea.org/reports/the-future-of-hydrogen
12 https://mnre.gov.in/img/documents/uploads/file_f-1612941710983.pdf

16. India’s progress towards Green Hydrogen(13):
• Prime Minister Narendra Modi aims to transform India into an energy independent nation by
2047 where green hydrogen will play an active role as an alternate fuel to petroleum/ fossil-
based products.
• In 2020, India’s hydrogen demand stood at 6 million tonnes (MT) per year. It is estimated that
by 2030, the hydrogen costs will be down by 50 per cent.
• The demand for hydrogen is expected to see a five-fold jump to 28 MT by 2050 where 80 per
cent of the demand is expected to be green in nature.
• Some of the prominent industrial mammoths such as Reliance Industries Limited (RIL), Gas
Authority of India Limited (GAIL), National Thermal Power Corporation (NTPC), Indian Oil
Corporation (IOC) and Larsen and Toubro (L&T) plan to foray into the green hydrogen space. RIL
plans to become a net-carbon zero firm by 2035 and invest nearly INR 750 billion over the next
three years in RE.
• India has declared its ambition to become an exporter of hydrogen to Japan, South Korea, and
Europe.(14)

17. • Various hydrogen powered vehicles have been developed and demonstrated under projects
supported by Government of India. These include 6 Cell buses by Tata Motors Ltd., 50 hydrogen
enriched CNG (H-CNG) buses in Delhi by Indian Oil Corporation Ltd. in collaboration with Govt.
of NCT of Delhi, 2 hydrogen fuelled Internal Combustion Engine buses (by IIT Delhi in
collaboration with Mahindra & Mahindra).

18. Green Hydrogen Policy 2022
India’s Honorable Prime Minister, Shri Narendra Damodar Das Modi launched The
National Hydrogen Mission on India’s 75th Independence day (i.e. 15 August 2021).
The mission aims to help the government in achieving it’s climate goals and making
India a Green Hydrogen hub. Keeping above mentioned in mind the Indian
government has framed Green Hydrogen policy for implementation and
compliance by all the concerned authorities.
Under the policy, the government is offering to set up manufacturing zones for
production, connectivity to the ISTS (Inter-State Transmission System) on priority
basis, and free transmission for 25 years if the production facility is commissioned
before June 2025.

19. New Green Hydrogen Policy – 2022
• The Centre unveiled the green hydrogen policy, promising cheaper
renewable power, fee waiver for inter-state power transmission for 25
years for projects commissioned before June 2025, land in renewable
energy parks, and mega manufacturing zones to help local industries
wean themselves off fossil fuels.
• Reaffirming India's ambition to become a green hydrogen production
and export hub as envisaged in National Hydrogen Mission, the
Ministry of Power notified the first phase of the green
hydrogen/green ammonia policy on February 17, 2022

20. PROPOSAL AND WHAT IS IT ABOUT
Since there is been a drastic change in the climate due to excessive emissions
world wide a rousing the need for reduction in the global warming by
2degree Celsius or less and to curb it at 1.5degree Celsius more than pre
industrial levels.
For this many countries have pledge their NDC’s (Nationally Determined
Contributions) and so the big economies like India are set to go net zero for
which energy transition and emission reductions are must.
Transition to green hydrogen and green ammonia is one among the
requirements and aids to emission reduction, especially in hard to abate
sectors.
The Indian government have gone through considerations on policy
measures to facilitate transition from fossil fuels to Green hydrogen and
Green Ammonia both as energy carriers and chemical feed stock for different
sectors, which are as follows.

21. (1) How Green Hydrogen is made:
Green hydrogen is produced by the electrolysis of water using renewable energy, the
renewable energy that is reserved and the hydrogen ammonia produce from the
biomass. The image below explain the process of electrolysis.

22. (2) How waiver of inter state transmission charges must be granted:
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.

23. (3) How to manufacture Green Hydrogen:
Green Hydrogen / Green Ammonia can be manufactured by a developer
by using Renewable Energy from a co-located Renewable Energy plant,
or sourced from a remotely located Renewable Energy plants, whether
set up by the same developer, or a third party or procured renewable
energy from the Power Exchange.
Green Hydrogen/Green Ammonia plants will be granted Open Access for
sourcing of Renewable Energy within 15 days of receipt of application
complete in all respects.
The Open Access charges shall be in accordance with Rules as laid down.

24. (4) Banking credentials and aids for Green Hydrogen production:
Banking shall be permitted for a period of 30 days for Renewable Energy used for making
Green Hydrogen / Green Ammonia.
The charges for banking shall be as fixed by the State Commission which shall not be
more than the cost differentia/ between the average tariff of renewable energy bought by
the distribution licensee during the previous year and the average market clearing price
(MCP) in the Day Ahead Market (DAM) during the month in which the Renewable
Energy has been banked.

25. (6) Green Hydrogen to get priority for transmission and good connectivity between
generation and manufacturing end:
Connectivity, at the generation end and the Green Hydrogen / Green Ammonia
manufacturing end, to the [STS for Renewable Energy capacity set up for the purpose of
manufacturing Green Hydrogen / Green Ammonia shall be granted on priority under the
Electricity (Transmission system planning, development and recovery of Inter State
Transmission charges) Rules 2021.

26. (7) Land for Green Hydrogen manufacturing:
Land in Renewable Energy Parks can be allotted for the manufacture of Green Hydrogen /
Green Ammonia.
The Government of India proposes to set up Manufacturing Zones. Green Hydrogen /
Green Ammonia production plant can be set up in any of the Manufacturing Zones.

27. (9) Permission for installing bunkers for easy shipping:
Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers
near Pons for storage of Green Ammonia for expon / use by shipping. The land for the
storage purpose shall be provided by the respective Port Authorities at applicable charges.

28. (10) How RPO comes into play in the whole process:
Renewable Energy consumed for the production of Green Hydrogen / Green Ammonia
shall count towards RPO compliance of the consuming entity. The renewable energy
consumed beyond obligation of the producer shall count towards RPO compliance of the
DISCOM in whose area the project is located.

29. (11) How Distribution Licensees can supply renewable energy to the manufacturers:
Distribution licensees may also procure and supply Renewable Energy to the
manufacturers of Green Hydrogen / Green Ammonia in their States. In such cases, the
Distribution licensee shall only charge the cost of procurement as well as the wheeling
charges and a small margin as determined by the State Commission.

30. (12) Formation of a separate vertical for supervision of Green Hydrogen production:
Ministry of New and Renewable Energy(MNRE) will establish a single poåa/ for al/
statutory clearances and permissions required for manufacture, transportation, storage
and distribution of Green Hydrogen / Green Ammonia. The concerned
agencies/authorities will be requested to provide the clearances and permissions in a
time-bound manner, preferably within a period of 30 days from the date of application.

31. (13) Measures for getting cheapest of the prices:
In order to achieve competitive prices, MNRE may aggregate demand from different
sectors and have consolidated bids conducted for procurement of Green Hydrogen/Green
Ammonia through any of the designated implementing agencies.
(Note: The points skipped in between are mentioned in the point previous to them
like if point 5 is missing then it is mentioned in point 4)

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