Under its green hydrogen policy, the Uttar Pradesh government is looking to invest more than Rs 5,000 crore in such enterprises by 2028.
The state will catalyse the production of green hydrogen for industrial, petrochemical and transportation sectors.
In the UP Green Hydrogen Policy 2024, the state is targetting production of a million tonnes of green hydrogen per annum and creation of 120,000 jobs.
The policy, approved last week by the Yogi Adityanath cabinet, will support startups and incubators working to promote green hydrogen.
The state will provide financial aid of Rs 25 lakh per startup annually for five years under the new policy. The policy is aimed at minimising carbon emissions and contributing towards achieving India’s ‘net zero’ commitment by 2070.
At present, the state fertiliser and petrochemical industry uses grey hydrogen produced with natural gas or methane, which are carbon emitting. The state decided to promote green hydrogen as a cleaner alternative.
In UP, the current hydrogen demand is estimated at 900,000 tonnes per annum in the fertiliser and refinery sectors.
Green hydrogen is produced by breaking down water in an electrolyser using renewable energy, so there is no carbon emission. 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.
At the UP Global Investors Summit (GIS) 2023, the state netted green hydrogen investment proposals totalling nearly Rs 2.70 trillion from about 20 companies.
Meanwhile, the state is offering government land on a 30-year lease for green hydrogen projects. The lease rate for public sector entities will be Rs 1 per acre per annum; for private investors, it will be Rs 15,000 per acre per year.
The green hydrogen projects will be categorised under the ‘White Category’ for environmental clearance.
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. The Asia-Pacific region is expected to top green hydrogen growth chart.