Aims to foster production plants of Green hydrogen/Ammonia
In order to encourage, develop, popularize and promote Green Hydrogen production plants by investors the state government of Andhra Pradesh has decided to notify “Andhra Pradesh Green Hydrogen/Green Ammonia Policy – 2023”.
In addition to mitigate the carbon emissions and ensure sustainable future the policy also aims to make Andhra Pradesh a preferred destination for production and export of green hydrogen/nitrogen.
In the GO dated 20th June 2023 issued by the special Chief Secretary to government Mr K Vijayanand it noted that the policy will be in effect for a period of 5 years.
Some of the Objectives of this new policy include: To target Green Hydrogen production up to the capacity of 0.5 MTPA (Million Tonnes Per Annum) or Green Ammonia production up to the capacity of 2.0 MTPA in the next five years by harnessing the RE potential in the State, To support the development of eco-system for Green Hydrogen/Green Ammonia production, To attract investments, provide employment and improve the economy of the State, To create 12,000 jobs per Million Tonne Per Annum (MTPA) production of Green Hydrogen in the State, To promote setting up of Green Hydrogen and Green Ammonia and its related equipment manufacturing facilities in the State, To make Andhra Pradesh the preferred destination for production and export of Green Hydrogen/Green Ammonia.
As per the GO the current hydrogen demand in the State stands at around 0.34 MTPA, primarily used in the N-fertilisers, and demand of around 0.13 MTPA in the refinery sector.
Future demand for Green Hydrogen is subject to the expected growth in the hydrogen consuming sectors. The Nodal Agency shall publish White Paper on “Green Hydrogen Investment Opportunity in Andhra Pradesh” said the GO.
Incentives Offered
And in order to incentivise and attract investors in this sector the new policy has offered a slew of incentives some of which include 100% reimbursement of net SGST revenue to the developer from sale of Green Hydrogen/ Green Ammonia within the State for a period of five (5) years from commercial operation date (CoD), 100% exemption of Electricity Duty for the power consumed for production of Green Hydrogen/Green Ammonia from RE plants (with or without storage) for a period of five (5) years from CoD, 25% of Intra-state transmission charges shall be reimbursed to the developer for a period of five (5) years from CoD for the power procured from RE (with or without storage) plants located within the State subject to maximum of INR 10 Lakhs/MW/year of installed electrolyser capacity etc.
Key Policy Objectives:
🡪To make AP the preferred destination for production and export of Green Hydrogen
🡪To target Green Hydrogen production up to the capacity of 0.5 MTPA or Green Ammonia capacity of 2.0 MTPA in the next 5 years
