Rs 5K cr set aside for green hydrogen production in Uttar Pradesh – EQ

In Details – The Uttar Pradesh (UP) government has unveiled an ambitious plan to bolster the production of green hydrogen across industrial, petrochemical, and transportation sectors, setting aside a substantial incentive and financial support package of Rs. 5,000 crore. Under its UP Green Hydrogen Policy 2024, the state aims to annually produce 1 million tonnes (mt) of green hydrogen by 2028, a move expected to generate approximately 120,000 job opportunities. This policy, recently ratified by the Yogi Adityanath Cabinet, underscores the government’s commitment to fostering green energy initiatives and supporting startups dedicated to green hydrogen research and production.According to a UP government official, startups in this domain will receive financial aid of Rs. 25 lakh per annum for a duration of five years under the new policy. This initiative aligns with broader national objectives aimed at minimizing carbon emissions and advancing India’s ‘net-zero’ commitment by 2070. Currently, the state relies on grey hydrogen, produced from natural gas or methane, which emits carbon. The decision to promote green hydrogen as a cleaner alternative underscores UP’s commitment to sustainability.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri commended the UP government’s policy during the inauguration of an Indian Oil compressed biogas (CBG) plant in Gorakhpur on March 8, highlighting its potential to attract investments in green hydrogen projects. In UP, the current demand for hydrogen stands at 900,000 tonnes annually in sectors such as fertilizers and refineries. Green hydrogen, produced through electrolysis of water using renewable energy, offers a carbon-neutral alternative. Additionally, hydrogen can be combined with nitrogen to produce ‘green’ ammonia, facilitating energy storage and fertilizer production without contributing to greenhouse gas emissions.

The state’s proactive stance has already attracted significant interest, with the UP Global Investors Summit (GIS) 2023 witnessing proposals amounting to nearly Rs. 2.70 trillion in green hydrogen investments from approximately 20 companies. Furthermore, the state is facilitating green hydrogen projects by offering government land on a 30-year lease period, with favorable lease rates set at Rs 1 per acre per year for public sector entities and Rs. 15,000 per acre per year for private investors. These projects will be categorized under the ‘white category’ for environmental clearance, streamlining their approval process. The global green hydrogen market, valued at $1.83 billion in 2021, is projected to reach $90 billion by 2030, with the Asia-Pacific region expected to spearhead growth in this sector. Through strategic initiatives and investments, Uttar Pradesh aims to play a pivotal role in this burgeoning industry while fostering sustainable development and economic growth.