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10th June 2024 (11 Topics)

Boost to Green Ammonia Production

Context

India has taken a crucial step towards demand creation of Green Hydrogen and its derivatives in the country. Solar Energy Corporation of India (SECI) has issued Request for Selection (RfS) for Selection of Green Ammonia Producers for the production of Green Ammonia in India under Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme.

Implications for India's Energy Sector:

  • Environmental benefits: The production of Green Ammonia holds immense promise for India's energy sector. By leveraging renewable energy sources for ammonia production, the country can significantly reduce its carbon footprint and mitigate environmental degradation.
  • Energy security and development: Furthermore, the adoption of Green Hydrogen technologies not only enhances energy security but also fosters economic growth through job creation and technology development.
  • Emergence as leader: By prioritizing the production of Green Ammonia and other clean energy derivatives, India is poised to emerge as a global leader in the clean energy transition.
  • Self-reliance: With concerted efforts and strategic investments, the nation is well-positioned to achieve its goal of Aatmanirbhar Bharat (self-reliant India) while spearheading the global fight against climate change.

India’s position in Ammonia market

  • India is positioning itself as a key player in the renewable ammonia
  • India’s ambition to produce 5 million metric tons (mt) of renewable hydrogen by 2030 and secure a 10 per cent share of the global trade by that time underscores its commitment to renewable energy.
  • Challenges: While India boasts nearly 100 renewable or low-carbon hydrogen projects with a combined capacity of 7.85 million mt, the challenge lies in finding a market for its renewable ammonia.
  • Advantages for India: Despite these challenges, India's renewable hydrogen/ammonia is expected to remain competitive globally due to its cost advantages.
    • National Green Hydrogen Mission 2023 waives interstate transmission charges for renewable energy and offers substantial subsidies, plays a pivotal role in driving down production costs.
    • India's renewable energy sector benefits from various incentives, including cheap power, subsidies, low-cost loans, and readily available land, provided by federal and state governments.
    • India enjoys a significant transport cost advantage over the Middle East in supplying to North Asia, further enhancing its competitiveness.

What is the ‘SIGHT Programme’?

  • SIGHT Programme is a subcomponent of National Green Hydrogen Mission under Ministry of New & Renewable Energy (MNRE)
  • This program aims to propel India towards self-reliance in clean energy through the production of Green Hydrogen and its derivatives.
  • Implemented by: Solar Energy Corporation of India (SECI)
  • Under the SIGHT Programme, MNRE has already allocated 4.12 lakh Metric Tonnes (MT)/annum of Green Hydrogen production capacity and 1.5 GW/ annum of Electrolyzer manufacturing capacity.

Fact Box:

Green Hydrogen

  • Green Hydrogen is produced through the electrolysis of water using renewable energy sources such as solar or wind power.
  • Unlike conventional hydrogen production methods that rely on fossil fuels, Green Hydrogen emits zero greenhouse gases, making it an environmentally sustainable alternative.

Green Ammonia

  • Ammonia is a compound comprised of nitrogen and hydrogen, commonly used in fertilizer production.
  • Green Ammonia is produced using Green Hydrogen instead of hydrogen derived from fossil fuels, thus significantly reducing carbon emissions.

National Green Hydrogen Mission:

  • Launched in: 2023
  • Implemented by: Ministry of New & Renewable Energy (MNRE)
  • National Green Hydrogen Mission is a visionary initiative with a significant financial outlay.
  • With the objective of fostering self-reliance and driving clean energy transition, this mission aims to reduce India's dependence on fossil fuel imports while positioning the country as a global leader in Green Hydrogen technology. By promoting innovation and investment in renewable energy, the mission sets the stage for a greener, more sustainable future.
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