In Short : Uttar Pradesh (UP) is set to implement a green hydrogen policy, emphasizing its commitment to promoting clean energy. This policy likely aims to encourage the production and utilization of green hydrogen, which is produced using renewable energy sources, contributing to a more sustainable and environmentally friendly energy landscape in the state.
In Detail : The groundwork was laid during the UP Global Investors Summit in February 2023
The Uttar Pradesh Government is planning to construct a one million tonne per annum (mtpa) green hydrogen production capacity which will generate 120,000 jobs.
Anupam Shukla, Director of the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), said, “The ‘Green Hydrogen Policy 2023 is poised to usher in large-scale green hydrogen production in the state. The policy has been crafted to provide financial incentives to relevant enterprises, beyond the ease of doing business.”
To promote green hydrogen/green ammonia production and this sector in the state, the government has prepared a draft of the Uttar Pradesh Green Hydrogen Policy 2023. The process to get the said draft policy approved by the government is in the final stage.
This push is to be headed by Arvind Sharma, the state government’s Minister of Energy and Urban Development.
The groundwork was laid during the UP Global Investors Summit in February 2023, where the state received investment proposals totalling Rs 2.73 trillion for green hydrogen plants from 20 leading companies.
Green hydrogen, produced by utilising renewable energy in an electrolyser to break down water is a sustainable innovation. This process ensures that the production is free from carbon emissions, aligning with global efforts to combat climate change. The state’s vast network of 30 rivers provides a unique advantage, as water plays a pivotal role in the production of green hydrogen.
The state is hoping to capitalise on the global green hydrogen market which is estimated to reach $90 billion by 2030. The sector is projected to grow at a compound annual growth rate (CAGR) of 54 per cent during 2021-2030, having been valued at $1.83 billion in 2021.
The government hopes that this move will position the state not only as a leader in sustainable energy but also as a key player in the global green hydrogen landscape.
The state is also gearing up to establish two centres of excellence (CoE) dedicated to research and innovation in green hydrogen. These will fall under the purview of UPNEDA.
The green hydrogen policy being formulated by the state will offer a comprehensive package of investment incentives. These include benefits on capital outlay, land availability, power transmission, and more, reinforcing the commitment to make UP an attractive destination for green energy ventures.
For the establishment of Pumped Storage Hydro Plant (PSP) plants in the state, work is on to identify sites and implement them. 9 projects with a total proposed capacity of about 12,000 MW by five developer companies will be set up initially.
The UPNEDA has also developed a website for the effective and transparent approval of projects. Developers can register their projects through these portals for state government approval. An online process for issuing an NOC (no objection certificate) for the production of biodiesel from biodiesel projects has also been launched.
The state’s policy aims to increase hydrogen blending in regions where green hydrogen is consumed, facilitating a seamless integration into existing energy ecosystems. It is anticipated that the policy will pave the way for the establishment of carbon dioxide recovery units, effectively utilising carbon produced from biogas and other industries.
