The New and Renewable Energy Department of Haryana has proposed the draft “Haryana Green Hydrogen Policy 2024,” aligning with the Government of India’s National Green Hydrogen Mission (NGHM).

Stakeholders can share their suggestions and comments by March 15, 2024.

The Haryana Green Hydrogen Policy 2024 envisions reaching a production target of 250 kilotons per annum (TPA) of green hydrogen by 2030, coupled with a 2 GW electrolyzer and associated components manufacturing.

The policy seeks to address environmental concerns by utilizing biomass for green hydrogen production, particularly aimed at mitigating emissions from crop burning.

Eligible Projects

Eligible projects under this policy encompass green hydrogen and its derivatives projects within the state that procure renewable energy (RES) from various sources.

These include third-party RES procurement through the open access route within the state, either co-located or differently located RES within the state; deployment of captive RES plants within or outside the state, either co-located or differently located within the state; RES procurement from distribution licensees within the state; green energy procurement from power exchanges; and a combination of the above, including energy storage facilities within the state charged from these sources.

Nodal Agency for Green Hydrogen

The Haryana New & Renewable Energy Department will establish the “Haryana Green Hydrogen Planning Committee (HGHPC)” to serve as the nodal agency under this policy.

HGHPC will be responsible for driving all aspects of green hydrogen-related policies, coordination, implementation, monitoring, compliance, and associated work. HGHPC will consist of designated officers from relevant departments and authorities of the state government involved in the development of the green hydrogen ecosystem.

HGHPC is expected to provide a single-window facility and facilitate the time-bound approval/allotment of all green hydrogen projects.

Project developers establishing green hydrogen and its derivatives projects within the state will pay a facilitation fee of ₹10,000 (~$120.83)/MW of green hydrogen plant capacity as a one-time facilitation fee to HGHPC for coordination, implementation, monitoring, and compliance-related work.

Eligible Project Developers

The projects that involve the electrolysis of water using renewable energy, biomass-based production, municipal solid waste-based production, or clean hydrogen produced through other innovative technologies, as specified by the Ministry of New and Renewable Energy (MNRE), are eligible.

These projects may involve captive use and/or the sale of green hydrogen and its derivatives to third parties.

Eligible project developers are required to submit a request for approval of green hydrogen and its derivatives projects, along with the tagged renewable energy projects, to HGHPC to avail of exemptions and benefits under this policy.

The registration fees for the associated renewable energy capacity will be applicable as per the state’s latest renewable energy policy.

Wheeling Charges Exempted

To ensure a continuous supply of renewable energy for green hydrogen production, the state will facilitate the development of renewable energy hybrid projects, battery storage, and pumped hydro storage projects within the state.

Renewable energy hybrid projects and pumped hydro storage projects associated with green hydrogen and its derivatives will receive priority in land allocation and connectivity to transmission and water infrastructure.

All relevant clauses under the Haryana bio-energy policy 2018 will apply to the cost-effective supply and processing of biomass used in green hydrogen.

Distribution licensees within the state can procure and supply renewable energy to green hydrogen and its derivatives projects. In such cases, the distribution licensee will only charge the cost of procurement and a small margin determined by the Haryana Electricity Regulatory Commission (HERC).

Wheeling charges will be exempted for this procurement, subject to periodic review by HERC.

Cross subsidy surcharge and additional surcharge will not be applicable for electricity procured for the production of green hydrogen in green hydrogen and its derivatives projects, subject to approval from HERC.

Contract demand charges will not be applicable for green hydrogen and its derivatives projects procuring renewable energy through open access in accordance with HERC regulations.

Obligated entities can fulfill their Renewable Purchase Obligation (RPO) by purchasing green hydrogen and its derivatives. The quantum of green hydrogen or its derivatives will be calculated based on the equivalence to the production of one MWh of electricity from renewable sources.

The Central Electricity Regulatory Commission will notify the norms for this calculation.

Excess renewable energy beyond the RPO of obligated entities will count towards RPO compliance of distribution licensees, following provisions of central policies and regulations related to renewable energy for green hydrogen.

RPO benefits associated with the excess renewable energy taken by different beneficiaries shall not exceed 100% of the RPO benefits accrued from renewable energy required for the production of green hydrogen.

Special concessions and waivers

There will be a 100% exemption from electricity duty for ten years from the commissioning date of green hydrogen and its derivatives projects consuming electricity from renewable energy projects with or without storage.

The policy also proposes a 100% exemption from intra-state transmission charges and wheeling charges for ten years from the commissioning date of green hydrogen and its derivatives projects procuring electricity from renewable energy projects with or without storage.

Intra-state transmission and wheeling losses, as well as banking rules and charges, will apply as determined by HERC.

Creation of Green Hydrogen Demand

HAREDA will facilitate demand aggregation in the state through an appropriate mechanism to support the creation of green hydrogen demand.

Subsidy of up to ₹50 (~$0.60)/kg of green hydrogen shall be provided for five years from the start of blending of green hydrogen with natural gas for CNG and PNG networks, green ammonia production, use in mobility, steel production, and in other industrial processes.

HAREDA will support the identification of a land bank for the development of hubs/clusters for the production, conversion, storage, transportation, and hydrogen refueling stations of green hydrogen and its derivatives within the State.

There will be a 100% exemption from the payment of stamp duty for land acquired for green hydrogen and its derivatives production, conversion, storage, transportation, and hydrogen refueling stations projects and associated co-located renewable energy projects within the state and commissioned during the policy operative period.

HAREDA will coordinate with the water resource department to identify and facilitate the development of water infrastructure for Green Hydrogen and its derivatives projects.

It will also identify potential sites for the development of renewable energy projects, facilitating the development of transmission infrastructure for connectivity through relevant state authorities.

Grid connectivity to green hydrogen and its derivatives projects and associated renewable energy and storage projects will be granted priority.

The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) will contribute by providing land, water, and basic infrastructure within its area for green hydrogen hub development.

Electrolyser and Equipment Manufacturing

HAREDA aims to simplify the import process of rare earth materials necessary for this electrolyzer manufacturing equipment.

Land allocation in HSIIDC areas for a manufacturing zone dedicated to green hydrogen supply chain equipment, renewable energy plant & equipment, and related components will be facilitated by HAREDA.

Guidelines for land allocation from this bank to potential manufacturers will also be formulated. Additionally, HAREDA will assist in the development of essential infrastructure like roads, electricity, and water in these manufacturing zones through relevant state authorities. HAREDA will facilitate time-bound statutory clearances for setting up manufacturing units through the coordination of relevant state authorities.

R&D and Pilot Projects

HAREDA will facilitate funding for R&D units on a case-by-case basis and promote collaboration between academia and industries.

Additionally, HAREDA would support innovation and incubation centers focused on green hydrogen production from biomass and waste, promoting advancements in sustainable practices.

In the realm of pilot projects, HAREDA will actively endorse the demonstration of initiatives employing green hydrogen technology for the transport sector, specifically long-haul heavy-duty buses and trucks, and suggest fiscal incentives based on individual project merits.

HAREDA will identify and implement demonstration projects in areas like biomass and municipal waste, subject to necessary approvals from the Government of Haryana.

Single-window Agency

A single-window facility will be established to streamline approvals for projects related to green hydrogen production, conversion, storage, and transportation.

The Haryana State Hydrogen Advisory Committee will facilitate the implementation of the green hydrogen policy.

Chaired by the Chief Secretary, the committee will be responsible for reviewing and approving green hydrogen-related projects under the policy.

Recently, MNRE launched pilot projects to use green hydrogen in the long-haul transportation sector under the National Green Hydrogen Mission.