Gurugram: Eyeing the generation of “250 kilotonnes per annum (ktpa) of green hydrogen by 2030”, the Haryana government has come out with a draft ‘Haryana Green Hydrogen Policy 2024’ that provides several incentives to those interested in setting up such units in the state. These include allocation of land with connectivity to transmission and water infrastructure, cost-effective supply of biomass to be used in green hydrogen, 100 percent exemption from electricity duty for 10 years, and more.
The benefits also include 100 percent exemption from stamp duty on the land acquired for green hydrogen projects.
Drafted with the objective of development and adoption of green hydrogen and its derivatives as an alternative fuel on the lines of the National Green Hydrogen Mission (NGHM), the policy was published on 15 February, with views, comments, and suggestions invited from the general public till 15 March.
The draft has been uploaded on the website of Haryana Renewable Energy Development Agency (HAREDA) under the state department of renewable energy.
Green hydrogen is hydrogen gas produced through a process that utilises renewable energy sources, such as wind, solar power or hydropower, to electrolyse water and separate hydrogen from oxygen. This process is called electrolysis, and when it is powered by renewable energy, it is considered “green” because it generates hydrogen without producing carbon emissions.
S. Narayanan, a senior Indian Forest Service officer and the director general of Haryana’s Department of New & Renewable Energy, told ThePrint that Haryana is producing 200 kilo-tonnes per annum of hydrogen — 150 ktpa via the Indian Oil Corporation’s Panipat refinery and the rest by National Fertilizers, Panipat — but all this is grey hydrogen.
As against green hydrogen, grey hydrogen is produced through coal and hence tends to be a carbon-intensive process.
Narayanan said the draft policy is in line with the central government’s NGHM launched in January 2023.
“The mission aims to accelerate the adoption of green hydrogen to decarbonise hard-to-abate sectors and also enhance energy security and reduce dependence on oil and gas imports. Under NGHM, India has targeted to achieve 5 million tonnes (per annum) of green hydrogen production by 2030. Hydrogen will also be an important means to increase penetration of renewable energy and allow its greater use in industries by substituting fuel and feedstock with green hydrogen and its derivatives,” he explained.
Hard-to-abate emissions are emissions that are either prohibitively costly or impossible to reduce with currently available technology.
Narayanan added that the Haryana government has recognised and emphasised the need for green hydrogen production and is aiming at creating the correct ecosystem as well as providing appropriate subsidies and incentives for the same.
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Hydrogen & green hydrogen
Speaking to ThePrint over phone Monday, Pardeep Kumar Nautiyal, technical advisor at HAREDA, said that hydrogen is both a fuel and a carrier of energy.
Hydrogen can be used as a fuel for fuel cell vehicles. Fuel cells convert hydrogen into electricity to power electric motors, emitting only water vapour as a byproduct. This can be a clean alternative to traditional internal combustion engines.
Hydrogen can also be used as a means of storing excess renewable energy generated during times of low demand. The stored hydrogen can then be converted back into electricity through fuel cells or combustion when energy demand is high.
Hydrogen can further be burned as a fuel in turbines or combined with other fuels to generate heat and power, providing an alternative to natural gas.
Green hydrogen can be utilised in various industrial applications, including the production of ammonia for fertilisers, refining processes, and as feedstock for the production of chemicals.
Green hydrogen can also be used in industries that traditionally rely on fossil fuels, helping to reduce carbon emissions in sectors such as steel and cement.
The production and use of green hydrogen contribute to the transition towards a more sustainable and low-carbon energy system, supporting efforts to address climate change and reduce dependence on fossil fuels.
Simply put, it is hydrogen fuel that is created using renewable energy instead of fossil fuels. It has the potential to provide clean power for manufacturing, transportation, and more — and its only byproduct is water.
Haryana’s policy
Haryana’s draft green hydrogen policy says that to enable a continuous supply of renewable energy, the state shall facilitate the development of renewable energy hybrid plants, battery storage, and pumped hydro-storage projects within the state.
While allocating land, connectivity to transmission infrastructure and water infrastructure is to be ensured, priority is to be given to the development of renewable energy hybrid plants and pumped hydro storage projects tagged to green hydrogen and its derivatives projects.
HAREDA is to provide support in identification of a land bank for the development of hubs/clusters for green hydrogen and its derivatives, and conversion, storage, transportation and hydrogen re-fuelling stations within the state.
HAREDA will also support formulation of guidelines for the allocation of land from such land banks to prospective developers. Where necessary, HAREDA will work with Haryana State Industrial and Infrastructure Development Corporation for the same. HAREDA shall further facilitate the acquisition of private land on lease/purchase through relevant state authorities.
The government will exempt certain taxes and duties for land used for green hydrogen and its derivatives projects. These include the local body tax and non-agriculture land tax for the land acquired, and 100 percent exemption from payment of stamp duty for the land acquired.
The benefits will also include 100 percent exemption from electricity duty for a period of 10 years from the date of commissioning of green hydrogen unit, and 100 percent exemption from intra-state transmission charges and wheeling charges for a period of 10 years from the date of commissioning.
Wheeling charges in electricity refer to the fees paid to transport electricity (leased cost of the transmission line) from the power plant to the end customer. The HAREDA shall facilitate the identification of potential sites/clusters for the development of green hydrogen hubs, the draft policy states.
(Edited by Nida Fatima Siddiqui)
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