Bullish on green hydrogen as a green alternative to fossil fuels, Uttar Pradesh is targetting to achieve a million tonne per annum production capacity of green hydrogen.
The state netted green hydrogen investment proposals worth Rs 2.73 trillion at the UP Global Investors Summit (GIS) 2023.
The green hydrogen projects are estimated to create job opportunities for 120,000 people.
The Centre is promoting the production of green hydrogen. Under this roadmap, the UP government is drafting its green hydrogen policy targetting production of a million tonnes of green hydrogen every year.
The proposed policy will offer an array of incentives and sops to investors on capital outlay, land availability, power transmission etc, and pitch UP as a leading green hydrogen player.
Green hydrogen will minimise carbon emissions and contribute towards achieving India’s ‘net zero’ commitment by 2070.
In the current decade, the Asia-Pacific region is projected to log fastest growth in the green hydrogen spectrum.
Green hydrogen is produced by breaking down water in an electrolyser using renewable energy, so there is no carbon emission.
Later, hydrogen can be combined with nitrogen to make ‘green’ ammonia, thus avoiding planet-warming hydrocarbons. Green ammonia is used to store energy and make fertilisers.
Since water plays a vital role in green hydrogen production, UP will also leverage its vast network of rivers.
The global green hydrogen market, valued at $1.83 billion in 2021, is estimated at $90 billion by 2030, growing at a compound annual growth rate (CAGR) of 54 percent during 2021-30.
At present, the hydrogen demand in UP is estimated at 900,000 tonnes/annum, especially in the fertiliser and refinery sectors.
The proposed UP green hydrogen policy will lay emphasis on increasing hydrogen blending in regions where there is consumption of green hydrogen. It will pave the way for setting up carbon dioxide recovery units to utilise carbon produced from biogas and other industries.