The Uttar Pradesh Government plans to establish a 1 MTPA green hydrogen production capacity, generating 120,000 jobs, to capitalise on the global green hydrogen market
The Uttar Pradesh government plans to construct a one million tonne per annum (mtpa) green hydrogen production capacity, generating 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 business."
Uttar Pradesh Plans 1 MTPA Green Hydrogen Production Capacity
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 of getting the draft policy approved by the government is in the final stage.
Arvind Sharma, the state government's Minister of Energy and Urban Development, will lead this push.
The groundwork was laid during the UP Global Investors Summit in February 2023, where the state received investment proposals totaling 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 carbon-emission-free production, resonating 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 producing green hydrogen.
The state hopes to capitalise on the global green hydrogen market, which is estimated to reach $90 billion by 2030. Having been valued at $1.83 billion in 2021, the sector is expected to grow at a CAGR of 54 percent from 2021 to 2030.
The government hopes that this move will position the state as a leader in sustainable energy and 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 state's green hydrogen policy 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.
To establish Pumped Storage Hydro Plant (PSP) plants in the state, work is done to identify sites and implement them. Nine 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 producing 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 seamless integration into existing energy ecosystems. The policy is anticipated to pave the way for establishing carbon dioxide recovery units, effectively utilising carbon produced from biogas and other industries.