The Ministry of New and Renewable Energy (MNRE) has released a draft Green Hydrogen Certification program (GHCI) for stakeholder consultation. Stakeholder can share their comments on the draft by September 27, 2024.

The program aims to establish a comprehensive framework for measuring, monitoring, and certifying green hydrogen production. It outlines governance structures, certification procedures, and guidelines for calculating greenhouse gas (GHG) emission intensity.

The program recognizes two eligible hydrogen production pathways – Electrolysis and Conversion of Biomass.

Stakeholders can propose new pathways for technical committee consideration.

To qualify as green hydrogen, the production must meet a GHG emission threshold of 2 kg CO2eq/kg H2, measured as an average over the last 12 months.

The GHCI introduces two main types of certificates:

• Concept Certificate: A voluntary certificate for facilities at the design stage.
• Facility Level Certificate: Mandatory for green hydrogen production facilities to apply for provisional or final certificates.

Additionally, producers can obtain:

• Provisional Certificate: An auto-generated voluntary certificate based on monthly production data.
• Final Certificate: Mandatory annual certificate issued after verification of the evaluation cycle.

Green hydrogen producers must engage an Accredited Carbon Verification agency for annual verification of GHG emissions and compliance with the program’s requirements.

The Bureau of Energy Efficiency (BEE) will be the nodal authority to implement the certification program. A technical committee chaired by the Mission Director of the National Green Hydrogen Mission will provide strategic direction and oversight.

The program includes provisions for monitoring and penalties to ensure compliance. Penalties may be levied for high emission intensity, mismatch in claimed versus actual production, or failure to apply for final certification.

Renewable Energy Consideration

The green hydrogen standard set by MNRE outlines the criteria for using renewable energy for certification.

Renewable energy for green hydrogen production can be sourced from a renewable energy project, with power transmitted via a dedicated transmission line or a shared one.

Under this program, claims of renewable energy based on renewable energy certificates or carbon credits are not considered valid. However, claims made through green tariff mechanisms and power exchanges (such as G-DAM) may be accepted.

Green hydrogen producers can count electricity as fully renewable if they have one or more power purchase agreements with operators of renewable electricity installations. The amount of electricity claimed as renewable must be at least equivalent to the amount produced by these installations.

If energy from non-renewable sources is used during hydrogen production, the GHG emissions from that energy consumption must be included in the overall GHG emission intensity calculation.

The responsibility for proving the renewable nature and the quantity of energy used lies with the green hydrogen producer.

This certification program is expected to be a crucial step in India’s National Green Hydrogen Mission, which aims to make the country a global hub for green hydrogen production, usage, and export.

Each issued certificate will include a unique identifier for every ton of hydrogen produced, detailing the project specifics, production year, and emission intensity values. Certification will be granted only if the average emission intensity is at or below 2 kg CO₂eq per kg of hydrogen under the specified conditions of the program.

If a green hydrogen production facility’s average emission intensity exceeds 2 kg CO₂eq per kg of hydrogen in a given financial year, the hydrogen produced by that facility during that year will not be certified green.’

The green hydrogen certificate functions solely as a label that verifies the origin and attributes of the green hydrogen, and it is not transferable or tradeable.

The certificate does not equate to an emission reduction credit and cannot be used for mitigation outcomes. However, the certification and hydrogen emission intensity may be referenced to highlight potential emission reductions due to the production of green hydrogen or its use as a substitute for hydrogen from other sources, such as fossil fuels.

A certification fee of ₹0.25 (~$0.0029) per kg of green hydrogen certified will be charged by MNRE or its designated agency.

By establishing clear standards and procedures, the GHCI is expected to boost investor confidence and accelerate the growth of the green hydrogen sector in India.

Recently, MNRE issued guidelines to implement the program on funding testing facilities, infrastructure, and institutional support to develop standards and a regulatory framework.

MNRE  had also issued guidelines for incentive disbursement for up to 450,000 metric tons per annum of green hydrogen production under Component II of the Strategic Interventions for Green Hydrogen Transition program.