Kerala’s green hydrogen, ammonia projects soar with Rs 72,000 Cr investment proposals – EQ
In Short : Kerala, known for its renewable energy initiatives, has seen a significant increase in investment proposals for green hydrogen and ammonia projects in the state. With a total investment of Rs 72,000 Cr, these projects are expected to bring in a new era of clean energy production in Kerala.
In Detail : These projects, leveraging state subsidies and tax exemptions, aim to boost export-led growth.
The Kerala Government has received investment proposals totalling Rs 72,760 Cr from four large companies for establishing green hydrogen and green ammonia projects based on Kerala’s draft green hydrogen policy.
A senior official revealed that these proposals aim to leverage state subsidies and focus on export-led growth. The state will invest around Rs 275 crore through capex subsidies for each project and give full electricity duty exemption for 25 years.
The first company has indicated it will invest Rs 22,062 crore and Rs 4,511 crore. The process of identification of the land is still underway, however, the focus is on the areas close to the plantations of tea.
Also, two big entities have invested over Rs 30,000 crore in green hydrogen and green ammonia production for export and the domestic market.
ReNew Power Ltd, a firm listed on the Nasdaq, intends to commit Rs 26,400 crore for a project that will produce 220 ktpa of green hydrogen. Kerala has prepared its draft green hydrogen policy and it has been cleared by the state cabinet and is now awaiting approval from the Council of Ministers.
This is in line with India’s target to have a minimum of 5 MTPA of green hydrogen production by 2030 under the National Green Hydrogen Mission to encourage zero-carbon-emitting generation to reduce sectors dependent on hydrogen.
