Overview of Green Ammonia Plant
Green ammonia is an eco-friendly alternative to traditional ammonia production, typically produced from natural gas. The conventional method of production generates greenhouse gas emissions that contribute to global warming. In India, the demand for green ammonia is growing as the country aims to reduce its carbon footprint and meet its commitments under the Paris Agreement.
The key components of a green ammonia plant include a renewable energy source, an electrolyser for hydrogen production, a synthesis unit for producing ammonia, and storage and handling facilities for the final product. The cost of setting up a green ammonia plant in India varies depending on the scale and location.In terms of funding, government incentives and subsidies play a crucial role in promoting green ammonia business setup in the country. The government has announced various plans to increase the size of renewables in the country's energy mix and has set ambitious targets for reducing greenhouse gas emissions. This creates an opportunity for private investors and companies to take advantage of the growing demand for green ammonia in India.
Benefits of Green Ammonia
Green ammonia is an essential source of energy and has the following benefits:
Easy Storage: Ammonia as a component can be easily stored if the pressure of the containers can be maintained between 10-15 or if the temperature can be lowered to -33℃. This characteristic makes ammonia easy to store. Most of the counties have existing networks and infrastructure to transport them.
Reduction in Carbon fuel: Ammonia can be used in different engines and can also be used to produce electricity. The only residues of ammonia in such processes are water and nitrogen. So, once the industries adopt ammonia, carbon fuel emissions will reduce significantly.
Hydrogen carrier: It is challenging to store and transport hydrogen. However, it is an essential gas that is required by multiple industries. Ammonia can be used to deal with this issue as it is easy to carry and transport and can be cracked and purified to form hydrogen gas when required.
Permits and Licenses
The Green ammonia plant setup in India requires various permits and licenses, such as:
Environmental clearances and Regulatory clearances: The applicant must obtain environmental clearances such as Pollution (NOC), waste management certificates, permits for usage of ground water etc., from the Ministry of Environment, Forest and Climate change.
Industrial licenses: The company needs to apply for the appropriate industrial licenses as the plant will utilise hazardous chemicals. These licenses shall be granted by the Department for Promotion of Industry and Internal Trade G2B.
Land use Permits: One must also have proof of ownership of land. The applicant can produce either the rent agreement or the lease agreement for the same. However, an applicant must obtain permission to set up the plant from the concerned authorities.
Building permits: The plant must also receive structural and fire safety certificates from the municipal authorities before the beginning of the operations. Failure to obtain this may result in the immediate shutting down of the plant.
Electricity permits: The applicant must ensure that they have a proper electricity connection to carry out the plant operations. The license from the electricity board shall vary from state to state. This licence will be essential to avail of the electricity benefits the central government offers.
Pollution Board permits: The company has to obtain clearances from the central and state pollution control board before discharging emissions into the surrounding water or air.
Tax Registrations: The company also must obtain all the tax permits, including the GST registration, TDS registration and PAN card for the business.
Government Incentives
The government has introduced multiple incentives for Green Ammonia manufacturers to facilitate the National Green Hydrogen mission and reach its climate targets by 2030. These are:
Manufacturers are permitted to purchase renewable power from anyone anywhere.
The manufacturer shall be granted open access within 15 days from the receipt of the application.
The Manufacturers of Green Ammonia can store their renewable power for up to 30 days with the distribution company and utilise it whenever required.
The Distribution licenses will also enable the manufacturers to procure or supply renewable energies throughout the country. The manufacturer only needs to pay the cost of procurement, wheeling charge and a minimal margin as required by the state governments.
The transmit charges for Green ammonia between the states shall be waived off by the government for the initial 25 years for all the projects commissioned before 30th June 2025.
Green ammonia plants shall be given connection to the grid on a priority basis to minimise procedural delays.
Green ammonia manufacturers shall benefit from the government's Renewable Purchase obligation.
The Ministry of New and Renewable Energy shall develop a portal for manufacturers to obtain statutory clearances for their projects.
The manufacturers of the Green Ammonia shall be allowed to create bunkers near the ports to ease the process of export of ammonia through shipping. This land shall be allotted to the company by the port authorities.
Overview of Green Hydrogen Plant
Green hydrogen is a clean and renewable form of hydrogen made through the electrolysis of water using renewable energy sources like solar and wind power. India's green hydrogen plant business is growing as it seeks to transition to a more sustainable energy mix and meet its emissions reduction targets. The Indian government has planned to achieve 40% of its installed power capacity from renewable sources by 2030. It supports the development of green hydrogen through various initiatives and policies, such as the National Hydrogen Energy Roadmap and the National Mission on Hydrogen Energy.
The green hydrogen manufacturing and supporting infrastructure business in India represents a significant opportunity for the country to transition to a more sustainable energy mix, meet its emissions reduction targets, and support the growth of the hydrogen industry. With continued investments and support from the government and private sector, India's green hydrogen plant business is poised for growth.
Types of Hydrogen Manufacturing
Hydrogen is an essential gas used in various key industries. Therefore, it is crucial to know which type of hydrogen is being procured by the businesses. Majorly it can be divided into three categories based on the type of production such as:
Grey Hydrogen: This is the most common type of hydrogen production in the world. It is produced from natural gas like methane and releases harmful carbon emissions into the air in the form of carbon-di-oxide.
Blue Hydrogen: This type of hydrogen production is similar to grey hydrogen production; however, Blue hydrogen production does not release any toxins into the environment. The carbon emissions are collected and stored or reused.
Green Hydrogen: Is produced through water and renewable electricity sources. Hydrogen production has no harmful by-product, which means it is a 100% emission-free resource. Considering its environment-friendly benefits, many countries in the world are pushing to develop and harness this technology.
Benefits of Green Hydrogen
Clean energy: Green hydrogen is produced using renewable energy sources, such as solar power, wind or hydro, which helps to reduce greenhouse gas emissions and combat climate change.
Easy storage: Hydrogen can be stored and transported easily, making it a valuable energy storage solution for intermittent renewable energy sources, such as wind and solar.
Versatility: Hydrogen has a variety of applications, including transportation, heating, and power generation, making it a versatile energy source.
Improved air quality: By reducing the use of fossil fuels, green hydrogen can help to improve air quality and reduce health risks associated with air pollution.
Economic opportunities: The development and growth of the green hydrogen industry can create new jobs and economic opportunities, particularly in the manufacturing and installation of hydrogen production and storage equipment.
Transition to a low-carbon economy: Green hydrogen plays a vital role in supporting the transition to a low-carbon economy, as it provides a clean and sustainable alternative to fossil fuels.
Licenses needed to setup Green Hydrogen Plant
Environmental clearances and Regulatory clearances
Industry specific licenses
Building permits
Electricity permits
NOC from Pollution Board
Tax Registrations
Documents required to set up a Green Hydrogen Plant
Certification of incorporation
PAN card
Layout and site map of the plant
Environmental clearances (Pollutions NOC, CPCB/SPCB permits)
Insurance Documents
Tax Registration (GST, TDS etc.)
Electricity board permits
Industrial licenses
Government Incentives for Green Hydrogen plants
The government has introduced the Green hydrogen policy to facilitate the development of Green Hydrogen plants in the country. The policy provides the manufacturer subsidies and incentives such as:
Waiver of Transmission charges: The government will waive off the transmission charges for the following 25 years for green hydrogen projects that are commissioned before 30th June 2025.
Grant of Renewable energy: The manufacturer will be granted open access to source renewable energy in a span of 15 days from the date of receipt of the application. The applicant can procure this renewable energy from anywhere, energy plant, power exchange or any third party.
Storage: The manufacturer shall be permitted to store the Renewable energy for 30 days to produce green hydrogen. The manufacturer will have to pay the tariff fixed by the state commission.
Priority Connectivity: Green hydrogen plants shall be given priority connectivity from generation to manufacturing under the Electricity Interstate transmission charges rules 2021.
Grant of Land: The government will allot land to Green Hydrogen plants in renewable energy parks. Along with this, the government also plans to develop manufacturing zones to set up Green hydrogen plants.
Bunkers: The government has permitted the manufacturers to set up bunkers near ports for easy storage and hydrogen export. The port authorities shall provide these facilities on payment of a nominal fee.
RPO compliance: The electricity used for production will count towards the RPO compliance of the manufacturer. Any energy consumed above the obligation limit shall be discounted with the RPO of the DISCOM of the area where the plant is located.
Distribution Licensees: Distribution licensees can supply or procure renewable energy from Green hydrogen. For this, the distribution licensees have to only pay wheeling charges and a small fee to the state commission.
Portal for Manufacturers: The Ministry of New and Renewable Energy will develop a portal to grant permission and clearances for the manufacturers of Green Hydrogen. The portal shall enable the government to grant all sorts of permits within 30 days from the date of application.
Invitation for Bids: In order to aggregate the Green hydrogen needs from different sectors, the government will invite bids from different manufacturing agencies.
Overview of Renewable energy business
Renewable energy is derived from natural sources that are replenished or renewed over time, such as solar, wind, hydro, geothermal, and biomass. Unlike non-renewable energy sources, such as petroleum, which are limited and will eventually run out, renewable energy sources are abundant. They can be harnessed to generate energy without depleting the resource. Renewable energy is becoming increasingly popular due to climate change, air pollution, and energy security concerns. In addition, technological advances have made renewable energy more affordable and efficient, making it a more viable alternative to non-renewable energy sources.
Renewable energy business in India
The renewable energy business in India is rapidly growing and offers several opportunities for businesses to invest and participate in the development of renewable energy projects. India has set a goal of achieving 450 GW of renewable energy capacity by 2030, which includes solar, wind, hydro, and other renewable energy sources.
The government has launched several initiatives and policies to support the growth of renewable energy, such as the National Solar Mission, the Solar Park scheme, and the Wind Energy Development Program. These initiatives provide various incentives, such as tax benefits, subsidies, and preferential tariffs for renewable energy projects.
Acts and Regulations
Electricity Act, 2003
National Tariff Policy, 2016
National Renewable Energy Policy, 2022
Companies Act, 2013
Foreign Exchange Management Act, 1999
Environment Protection Act, 1986
Trademark Act, 1999
Types of Renewable energy technology in India
Solar energy: India has a significant potential for solar energy due to its abundant sunlight throughout the year. Solar energy can be harnessed through solar photovoltaic (PV) panels, solar thermal technologies, and concentrated solar power (CSP) systems. The country has set a target of installing 100 GW solar power capacity by 2022.
Wind energy: India is the world's fourth-largest wind power market, with a total installed capacity of over 41 GW as of September 2021. Wind energy can be harnessed through the use of wind turbines, and it is especially prevalent in coastal regions and hilly areas.
Hydro energy: India has significant hydropower potential, with several large rivers and hilly regions. Hydro power can be generated and stored through large hydropower projects, small hydro projects, and pumped storage facilities.
Biomass energy: India has a significant potential for biomass energy, which can be derived from agricultural waste, forestry waste, and municipal solid waste. Biomass energy can be harnessed through biogas plants, biomass gasifiers, and other technologies.
Geothermal energy: India has geothermal potential, mainly in the Himalayan region. Geothermal energy can be harnessed through geothermal power plants and heat pumps.
Tidal energy: India has significant potential for tidal energy due to its long coastline. Tidal energy can be harnessed through the use of tidal stream turbines and tidal barrage systems.
Documents required for Renewable energy business
Different types of renewable energy businesses require different types of documents; however, there are a few standard documents these are:
Company Incorporation
Articles of Association
Memorandum of Association
GST Registration
Trademark Registration
MSME Registration
Shop and Establishment license
Pollution NOC
Permanent Account Number (PAN)
Tax Deduction and Collection Account Number (TAN)
Bank Account details
Loan Documents
CEIG Approval
The process to obtain the certificate for renewable energy certificate
You need to apply to the Renewable Energy Certificate Registry of India. The application can be made online through the Web-based application or physically with Central Agency. The application must be made in Format 2.1. The application should contain information such as owner details, Generation station details, Accreditation certificate, facility commission schedule and other relevant information.
The applicant will receive a unique acknowledgement number for the application. This unique number will remain the same for all future applications relating to the RE generation project.
The Central agency will conduct preliminary scrutiny of the application. The applicant has to pay the registration charges, and the agency is bound to complete the scrutiny within two working days.
After the preliminary scrutiny, the Central agency will write to the applicant for any further submission of information or the reasons for rejection/ registration of the application. The applicant shall be informed about it in two working days.
The scrutiny shall be completed on the following parameters:
A Valid Certification of Accreditation by a State Agency
Date of Commissioning or Proposed Commissioning or Commissioning Schedule for new projects.
Undertaking that it has not entered into any Power Purchase Agreement at preferential tariff as may be determined by the Appropriate Commission
Details of payment of registration fees/charges
The Central Agency will issue a "Certificate for Registration" to the applicant as an "Eligible Entity" upon inspecting and verifying the conditions outlined in Step 5. This certificate confirms the applicant's eligibility to receive Renewable Energy Certificates for their proposed Renewable Energy Generation project and assigns a specific entity-wise and project-wise code number for future correspondence with the Central Agency. Typically, the registration process will be finalized within 15 days of receiving complete information. If the registration is denied, the reasons for the rejection will be documented and communicated to the applicant in writing.
If the Central Agency approves the registration of an Eligible Entity, it will also inform the following parties about the registration of the Eligible Entity for the specific Renewable Energy generation project:
The host State Agency
The host State Load Despatch Center
The Power Exchanges, as defined under Clause 2(1) j of the CERC REC Regulation
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