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Overview of Green Hydrogen Plant

Green hydrogen is a clean and renewable form of hydrogen made through the electrolysis of water using renewable energy sources like solar and wind power. India's green hydrogen plant business is growing as it seeks to transition to a more sustainable energy mix and meet its emissions reduction targets. The Indian government has planned to achieve 40% of its installed power capacity from renewable sources by 2030. It supports the development of green hydrogen through various initiatives and policies, such as the National Hydrogen Energy Roadmap and the National Mission on Hydrogen Energy.

The green hydrogen manufacturing and supporting infrastructure business in India represents a significant opportunity for the country to transition to a more sustainable energy mix, meet its emissions reduction targets, and support the growth of the hydrogen industry. With continued investments and support from the government and private sector, India's green hydrogen plant business is poised for growth.

Types of Hydrogen Manufacturing

Hydrogen is an essential gas used in various key industries. Therefore, it is crucial to know which type of hydrogen is being procured by the businesses. Majorly it can be divided into three categories based on the type of production such as:

Grey Hydrogen: This is the most common type of hydrogen production in the world. It is produced from natural gas like methane and releases harmful carbon emissions into the air in the form of carbon-di-oxide.

Blue Hydrogen: This type of hydrogen production is similar to grey hydrogen production; however, Blue hydrogen production does not release any toxins into the environment. The carbon emissions are collected and stored or reused.

Green Hydrogen: Is produced through water and renewable electricity sources. Hydrogen production has no harmful by-product, which means it is a 100% emission-free resource. Considering its environment-friendly benefits, many countries in the world are pushing to develop and harness this technology.

Benefits of Green Hydrogen

Clean energy: Green hydrogen is produced using renewable energy sources, such as solar power, wind or hydro, which helps to reduce greenhouse gas emissions and combat climate change.

Easy storage: Hydrogen can be stored and transported easily, making it a valuable energy storage solution for intermittent renewable energy sources, such as wind and solar.

Versatility: Hydrogen has a variety of applications, including transportation, heating, and power generation, making it a versatile energy source.

Improved air quality: By reducing the use of fossil fuels, green hydrogen can help to improve air quality and reduce health risks associated with air pollution.

Economic opportunities: The development and growth of the green hydrogen industry can create new jobs and economic opportunities, particularly in the manufacturing and installation of hydrogen production and storage equipment.

Transition to a low-carbon economy: Green hydrogen plays a vital role in supporting the transition to a low-carbon economy, as it provides a clean and sustainable alternative to fossil fuels.

Licenses needed to setup Green Hydrogen Plant

  • Environmental clearances and Regulatory clearances
  • Industry specific licenses
  • Building permits
  • Electricity permits
  • NOC from Pollution Board
  • Tax Registrations

Necessary Papers required to set up a Green Hydrogen Plant

  • Certification of incorporation
  • PAN card
  • Layout and site map of the plant
  • Environmental clearances (Pollutions NOC, CPCB/SPCB permits)
  • Insurance Documents
  • Tax Registration (GST, TDS etc.)
  • Electricity board permits
  • Industrial licenses

Government Incentives for Green Hydrogen plants

The government has introduced the Green hydrogen policy to facilitate the development of Green Hydrogen plants in the country. The policy provides the manufacturer subsidies and incentives such as:

Waiver of Transmission charges: The government will waive off the transmission charges for the following 25 years for green hydrogen projects that are commissioned before 30th June 2025.

Grant of Renewable energy: The manufacturer will be granted open access to source renewable energy in a span of 15 days from the date of receipt of the application. The applicant can procure this renewable energy from anywhere, energy plant, power exchange or any third party.

Storage: The manufacturer shall be permitted to store the Renewable energy for 30 days to produce green hydrogen. The manufacturer will have to pay the tariff fixed by the state commission.

Priority Connectivity: Green hydrogen plants shall be given priority connectivity from generation to manufacturing under the Electricity Interstate transmission charges rules 2021.

Grant of Land: The government will allot land to Green Hydrogen plants in renewable energy parks. Along with this, the government also plans to develop manufacturing zones to set up Green hydrogen plants.

Bunkers: The government has permitted the manufacturers to set up bunkers near ports for easy storage and hydrogen export. The port authorities shall provide these facilities on payment of a nominal fee.

RPO compliance: The electricity used for production will count towards the RPO compliance of the manufacturer. Any energy consumed above the obligation limit shall be discounted with the RPO of the DISCOM of the area where the plant is located.

Distribution Licensees: Distribution licensees can supply or procure renewable energy from Green hydrogen. For this, the distribution licensees have to only pay wheeling charges and a small fee to the state commission.

Portal for Manufacturers: The Ministry of New and Renewable Energy will develop a portal to grant permission and clearances for the manufacturers of Green Hydrogen. The portal shall enable the government to grant all sorts of permits within 30 days from the date of application.

Invitation for Bids: In order to aggregate the Green hydrogen needs from different sectors, the government will invite bids from different manufacturing agencies.

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How will Corpbiz help you in setting a Green Hydrogen Plant?

  • Provide your details in the Corpbiz consultation form. Our experts will connect with you to schedule a meeting.
  • We will help you with your business requirements and advise you about the Green hydrogen plant setup.
  • Our experts will assist you with procuring all the documents required to set up a Green Hydrogen plant in India.
  • We will file an error-free application for your Green hydrogen plant.
  • Periodic follow-ups with the authorities to update you about your application.

Frequently Asked Questions

Green hydrogen is a clean and renewable energy source that uses water and other energy sources such as wind, solar or hydro.

Green hydrogen can be used for a variety of applications, including power generation, transportation, heating, and industrial processes.

Green hydrogen can be used in various industries, such as transportation, power generation, heating and industrial processes.

India has enormous potential for developing green hydrogen, given its vast renewable energy resources and growing energy demand. Green hydrogen has the potential to play a significant role in meeting India's energy needs while reducing its carbon footprint.

The Ministry of Power, Government of India has notified the Green Hydrogen/Ammonia policy to incentivise the setup of Green Hydrogen plants in the country.

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