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Govt may offer PLI-like sops to promote hydrogen, ammonia

Monday, 14 Mar 2022
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The government may offer incentives to those available under the Production Linked Incentive (PLI) Schemes to promote domestic production and export of green hydrogen or ammonia. 
The incentives could be offered for a period of five years to support a minimum of 10 million tpa of green hydrogen or green ammonia exports by 2030 and 50 million tpa green hydrogen or ammonia market by 2030 in the country. 
The government could assist a PLI Scheme for electrolyser manufacturing and on its components such as electrodes and membranes, manufacturing of H2 storage, NH3 storage, NH3 loop. 
The government will also lay down technical safety standards for production and exports, along with setting up industrial corridors for green hydrogen or ammonia production along with land aggregation in major solar power producing states. 
These incentives can be over and above the benefits recently announced by the Ministry of Power, including waiver of inter-state transmission charges for a period of 25 years, creating a single portal for all statutory clearances, open access to all and granting benefit of renewable purchase obligation (RPO) to the hydrogen ammonia manufacturer and the distribution licensee for consumption of renewable power. 
The draft National Green Hydrogen Mission, which would be finalised soon, is also expected to lay down policy on green hydrogen consumption obligations for creating demand while setting out standards and specifications for green hydrogen labelling of products.
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