Green hydrogen production and usage has witnessed immense growth with countries' increased awareness towards clean energy. Countries like the United States, India and members of the European Union (EU) have introduced green hydrogen policy and acts to implement green hydrogen on a ground level. The major driver for the growth of green hydrogen is a vision to achieve low carbon emissions, reduced reliance on fossil fuels, and ensuring smooth transition towards green energy. 

The U.S. has introduced tax incentives under its "Inflation Reduction Act" to promote green hydrogen as a potential alternative for grey hydrogen. Similarly, "National Green Hydrogen Mission" was launched in India in 2022 that targets to produce 5 MMT of green hydrogen annually by 2030. Green hydrogen policies introduced are primarily implemented in Heavy manufacturing industry and transportation.

In this blog, let us uncover green hydrogen policies that fueled the growth of the green hydrogen industry.

Green Hydrogen- Global Analysis

Source: Blackridge’s Global Green Hydrogen Market Report

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North America

US National Clean Hydrogen Strategy and Roadmap

The US government introduced the National Clean Hydrogen Strategy and Roadmap planned through 2025, mid-term to 2029 until 2035. Under this national strategy a detailed analysis of supply, demand, emissions, jobs, infrastructure, policies of the low emission hydrogen and its relevant investments is covered. 

This policy launched in 2023 by the US government is outlined under the IIJA (Infrastructure Investment and Jobs Act) of 2021. This US’s green hydrogen policy envisions producing 10 MMT annually by 2030 and 20 MMT by 2040 and 50 MMT by 2050. The US Deputy Secretary of DOE (Department of Energy) David Turk in August 2023 said “50 MMT annually is equivalent not only to every bus and train but every plane and every ship in the US combined” . This can cut down about 16% of the greenhouse gas emissions in the US.

The US National Green Hydrogen Policy includes:

• 100,000 new direct and indirect jobs under the green hydrogen strategy and roadmap by 2030.
• The IIJA was established by DOE in 2021 to promote domestic production, deployment and usage of green hydrogen.
• A funding of USD 9.5 billion is provided under IIJA to set up regional hydrogen hubs, clean hydrogen electrolysis program, clean hydrogen manufacturing and recycling programs.
• USD 8 billion is being provided to develop 4 regional clean hydrogen hubs in the industrial sector
• USD 1 billion is allocated for clean hydrogen electrolysis program to reduce the cost of clean hydrogen production
• USD 500 million fund will be utilized for clean hydrogen manufacturing and recycling initiatives for the domestic hydrogen supply chain.

Asia

India National Green Hydrogen Mission

India launched its national hydrogen mission in 2022 to produce 5 MMT annually by 2030 and become a global hub for green hydrogen production, storage and distribution. Under this mission several policies and regulations were introduced in the form of subsidies and tax breaks for low carbon hydrogen production corridors. The green hydrogen policy 2023 introduced under this mission includes: 

ISTS Charges Waiver: The ISTS (Inter State Transmission System) charges for a period of 25 years from the date of commissioning will be exempted for GH2/GA project. This waiver is applicable from 30th June 2025 to 31st December 2030.

Environmental Clearance (EC): MOEFCC (Ministry of Environment, Forest and Climate Change) specifies that standalone plants producing GH2/GA through electrolysis of water using renewable energy won’t require any prior EC.
 

Read: Top 7 Upcoming Green Hydrogen Projects in India

Open Access: The government of India launched Green Energy Open Access Rules (GOAR) on 6th June 2022 under which the following regulations are implied for green hydrogen production and usage:

• Open Access transitions reduce from 1 MW to 100 KW to encourage small consumers to purchase renewable power through open access.
• Discoms (Distribution Company) shall procure and supply green power to eligible consumers.
• Approval to green open access through the national portal is to be granted in 15 days or will be deemed to have been granted.
• Commercial and industrial consumers can purchase green power voluntarily.
• Open Access charges such as transmission charges, wheeling charges, cross-subsidary surcharges, standby & banking charges are levied.
• Implementation of uniform RPO (Renewable Purchase Obligation) on all obligated entities and distribution licensees of GH2/GA.

Single Window Clearance Portal: A single window will be streamlined for all statutory clearances and permissions related to green hydrogen production and usage.

Get access to exclusive insights on the latest green hydrogen projects in India.

China: Green Hydrogen Strategy

The Chinese government developed a hydrogen strategy with medium to long-term goals for the period 2021-2035. Under this strategy, China aims to achieve a target of 50000 hydrogen fuel-cell vehicles on the road by 2025 and build large hydrogen refueling stations. 

China is the world's largest green hydrogen producer and consumer, it further plans to achieve green hydrogen production capacity of 100,000-200,000 tonnes per year by 2025 through renewable feedstock resources. Apart from transport, China foresees introducing clean hydrogen into energy storage, electricity generations and other industries.

China Green Hydrogen Policy

China’s green hydrogen policy has been divided into six achievable goals under its green hydrogen strategy. 

1. Reduce the cost of electrolysers and electricity used in green hydrogen production: Lay down a tax credit policy for green hydrogen, optimize electricity markets to increase green electricity trading and formulate policies that can standardize the electricity rates for green hydrogen production projects.
2. Reduce cost of infrastructure investment and expand financing channels: Designate and formulate unified national approval procedures to encourage pilot projects and promote construction of integrated hydrogen production and refueling stations. Provide infrastructure and financial support for hydrogen projects. 
3. Boost short term market demand for hydrogen fuel cell vehicles (HFCVs): Promoting green hydrogen storage with renewable energy sources through policy support by granting right of way to HFCVs, thus accelerating domestic hydrogen fuel cell technology and high-pressure hydrogen storage systems.
4. Improve regulatory system for hydrogen: Improve local and corporate standards in line with international standards and reflect on existing hydrogen sector standards for improvement.
5. Develop research and development sources for technology: Defining technological development through innovative platforms, enhanced rapid response capacity of alkaline hydrogen production systems and special funds for new-age electrolysis technology.
6. Development and regular improvements to national hydrogen strategy: Redefining the roadmap for national hydrogen strategy by developing long-term systems connecting technology, policy and finance.

Europe

The European Union (EU) green hydrogen policy states that emissions of the GHG must not exceed the GHG removals and phase-out the fossil fuels from the EU energy system. Under this policy, the EU aims to achieve climate neutrality by 2050. As a part of this large goal, the EU adopted two new acts in February 2023 to boost green hydrogen production. The first act defines hydrogen-based fuels as RFNBO (Renewable Fuels of Non-Biological Origin). The second act defines the calculation of the life cycle of the GHG emissions for RFBNO.

Germany: The National Hydrogen Strategy

The national hydrogen strategy in Germany was launched in June 2020 to enhance domestic green hydrogen production with an electrolyzer capacity target of 10 GW by 2030. And an additional 5 GW target is set for 2035-2040. 

The green hydrogen strategy is planned in three phases, the first phase targets production, use and transport of green hydrogen. The second phase in 2024 aims to stabilize and strengthen the markets. The Federal Ministry for Economic Affairs and Climate Action allocated EUR 7 billion for the national hydrogen strategy in June 2020.

Germany’s Green hydrogen policy

• Hydrogen Technologies Innovation Programme: An R&D (research and development) plan is developed by the Federal Ministry of Transport and Digital Infrastructure (BMVI) to support the initial market activation of the first hydrogen-based products. Further, the “National Innovation Programme for Fuel Cell and Hydrogen Technology” (NIP) - a German government initiative, will support the commercialization of hydrogen based products once they reach technical market maturity.
• Availability of Public Funding: The German government has granted about EUR 4.6 billion for 23 new green hydrogen projects that were awarded to companies like RWE and BP in July 2024.
• H2 Global Initiative: It is a 10 year German scheme that aims to import green hydrogen from other non-EU countries to Germany through a double auction system. In this system, Germany will purchase green hydrogen from non-EU countries at the lowest price possible through a competitive bidding process via a 10 year contract. Later, this green hydrogen will be sold throughout Germany at a higher price based on the demand supply value chain. All the contracts signed will be managed by an intermediary HINT.CO.

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France: Green Hydrogen Strategy

The France’s National Green Hydrogen Strategy was first launched in 2020 and was supported by an outlay of EUR 7 billion with a target to achieve 6.5 GW of electrolysis capacity producing 700,000 tonnes of low-carbon hydrogen annually by 2030.

France Green Hydrogen Policy

• Injection of Hydrogen in Natural Gas Networks: Under the Minister for the Ecological Transition, Minister of the Economy, Finance and the Recovery, the france government targets to use the existing natural gas pipelines for the transport of hydrogen.
• Financing hydrogen Projects: Under the Hydrogen Ordinance scheme, renewable and low-carbon hydrogen producers will be supported through financing for capital and operating expenditures. 

Under this scheme, the Multiannual Energy Program (Programmation pluriannuelle de l’énergie?-PPE) is launched for the period of 2019-223 and 2024-2028 to support its french hydrogen sector. An Investment for the future program and the IPCEI (Important Project of Common European Interest) will support funding of local projects and decarbonized hydrogen projects.

Oceania

Australia: National Hydrogen Strategy

The Australian government’s DCCEEW (Department of Climate Change, Energy, the Environment and Water) launched its national hydrogen strategy to position Australia as a global leader in the hydrogen production sector by 2030. Further, its targets to expand in this sector by creating more jobs, reducing the overall carbon emissions and promoting key hydrogen production and usage activities. 

The primary goal of the Australian government under this strategy is to decarbonize major sources of carbon emissions such as the transport and heavy manufacturing industries thus aiming for Australia to become a major exporter of green hydrogen to Japan, South Korea, and Europe.
 

Read:  Top 7 Upcoming Hydrogen Projects in Australia

The Australian Government introduced a clean hydrogen policy to identify opportunities for hydrogen-based projects at the local and regional levels. For this, the Australian Capital Territory (ACT) designed policies to achieve net zero emissions by 2045 and increase investments in renewable energy research.

Australia’s Green Hydrogen Policy

• Net Zero Emissions Territory: The ACT Climate Change Strategy launched for 20019-2025 aims to achieve net zero emissions from natural gas (one of the largest contributors of emissions). Additionally, energy transition for vehicles such as bus fleets by 2040 is also included under this policy.
• Renewable Energy Innovation Fund: The ACT government recapitalized the renewable power fund by attracting USD 2 billion in large-scale renewables for over the 20-year life of the contracts.
• Victorian Hydrogen Investment Program (VHIP): Under this program, the green hydrogen industry development will be supported through market testing, policy development and target investment program. Under this program, the barriers constraining development will be identified, trails, pilot projects and demonstrations will be supported in line with the national hydrogen strategy.
• Zero-Emissions Vehicle Roadmap: It was launched in 2020 and was designed to identify barriers, and plan zero-emissions vehicles (ZEVs) with government policies for energy system transition. Thus, capturing the environmental impact of ZEVs. 
• Decarbonise Victoria’s Gas Networks: Under its green hydrogen mission, the Victorian government aims to achieve net zero emissions by 2050, and to achieve this, Victoria plans to rearticulate its gas networks by blending green hydrogen while still meeting its consumers demand.
• Research and Development for New Technologies: The Victorian Government is a part of the CSIRO National Hydrogen Roadmap. While supporting its objectives, the Victorian government is investing in R&D to integrate its brown coal resource with CCS (Carbon Capture and Storage) and bring it in line with its National Hydrogen Strategy. Under this initiative, a CarbonNet Project is enabled to track carbon emissions and promote the production of green hydrogen for the domestic and export markets.

The Hydrogen Energy Supply Chain (HESC) is the world's first fully integrated hydrogen supply chain project developed in Latrobe Valley that will export green hydrogen to Japan. To know more about this project subscribe to our Australian Green Hydrogen Database.

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Summary

The increase in global hydrogen demand led to an increase in deployment of green hydrogen technologies, driven by green hydrogen policies across the globe. These policies are helping improve existing green hydrogen corridors and also promoting use of renewable energy to produce green hydrogen thus, enabling countries to significantly reduce their reliance on fossil fuels.

Through tax breaks, incentives and financial outlay countries like Germany, France, China, US and India are moving towards green energy transition. Through this transition countries are shifting towards renewable sources achieving carbon neutrality and reducing reliance of fossil fuels. Hence, green hydrogen policies are paving the way for a cleaner, more sustainable energy future.

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