Green Hydrogen and Green Ammonia Policy 2023 announced by Andhra Pradesh

The Government of Andhra Pradesh announced the launch of its “Green Hydrogen and Green Ammonia Policy 2023”. The policy aims to achieve a five-year production capacity of 0.5 million tonnes per year (MTPA) of green hydrogen and 2 MTPA of green ammonia. The policy will be in effect for five years or until a new policy is issued. The programme will also stimulate the establishment of green hydrogen and green ammonia-related equipment manufacturing plants, which would help create 12,000 jobs each MTPA of green hydrogen produced. The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) will serve as the policy’s nodal agency. Green hydrogen demand in the state is currently around 0.34 MTPA, which is mostly used in nitrogenous fertilisers, and 0.13 MTPA in the refinery sector.

The state will manufacture green hydrogen or green ammonia through open access from renewable energy plants, whether co-located or not Through a captive route from renewable energy installations that are co-located or not. Developers will be reimbursed 100 per cent of the net State Goods and Services Tax (SGST) on green hydrogen and green ammonia sales for the first five years after the project’s completion. Renewable energy used to produce green hydrogen/green ammonia will be exempt from electricity duty for five years, beginning with the project’s commercial operation date.

The cross-subsidy fee will be reimbursed for energy taken from renewable projects located inside the state to produce green hydrogen and green ammonia for five years from the date of commissioning. Priority will be given to grid connectivity to the intrastate transmission system at the generation and production end of renewable projects.The policy provides a 25 per cent reimbursement of intrastate transmission charges for five years from the date of commissioning for power obtained from renewable energy sources (with or without storage) located in the state, up to a maximum of one million MW per year of installed electrolyser capacity.