NEW DELHI: The government on Thursday allowed free inter-state wheeling of renewable energy used in the production of green hydrogen and ammonia as it seeks to boost usage of the carbon-free fuel and make India an export hub.
Unveiling the first part of the much-awaited National Hydrogen Policy, power and new and renewable energy minister Raj Kumar Singh said the government is targeting production of 5 million tonnes of green hydrogen by 2030.
Oil refineries to steel plants require hydrogen to produce finished products. This hydrogen currently is generated using fossil fuels such as natural gas or naphtha. While hydrogen per se is carbon-free, the use of fossil fuels results in carbon emissions.
Green hydrogen — also referred to as ‘clean hydrogen’ — is produced by using electricity from renewable energy sources, such as solar or wind power, to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis.
The hydrogen thus produced is used in the manufacturing process and oxygen is released into the atmosphere or bottled and sold to hospitals and industries that need it.