Mon. Oct 2nd, 2023
    States in India Roll Out Green Hydrogen Policies and Incentives

    The Indian government’s push for green hydrogen production and electrolyser manufacturing has now been followed by individual states implementing their own green hydrogen policies and incentives. The central government approved the National Green Hydrogen Mission (NGHM) earlier this year with a goal of producing 5 million metric tons (MMT) of green hydrogen annually by 2030. The Ministry of New and Renewable Energy (MNRE) allocated Rs 19,744 crore for the NGHM, which includes incentives for green hydrogen production and electrolysers.

    States have begun offering additional incentives such as subsidies on green gas production, transmission, and government land allotments. Producers will benefit from both central and state-level incentives. The MNRE has also released standards for green hydrogen production in India, mandating that carbon emissions should not exceed two kilograms of carbon dioxide equivalent per kilogram of hydrogen.

    States including Andhra Pradesh, Maharashtra, and Gujarat have already released their own green hydrogen policies. Andhra Pradesh aims to produce 0.5 MTPA of green hydrogen and 2.0 MTPA of green ammonia in the next five years. The state is offering subsidies and benefits such as subsidized government land leases, exemptions from charges and duties, and financial incentives for green hydrogen and ammonia units.

    Maharashtra has approved its green hydrogen policy and allocated Rs 8,562 crore for subsidies and benefits to green hydrogen producers and electrolyser manufacturers. The state aims to create 1.5 million tonnes of green hydrogen production capacity.

    Gujarat plans to make green hydrogen a priority sector and has introduced a land allotment policy with various benefits for green hydrogen projects. Companies investing in green hydrogen projects in Gujarat will need to meet certain production capacity targets within specific timeframes.

    These state-level initiatives contribute to India’s ambition to become a leading producer and exporter of green hydrogen. The country is actively encouraging investments in green energy projects and aims to accelerate the transition to a sustainable and low-carbon future.

    – National Green Hydrogen Mission
    – Ministry of New and Renewable Energy (MNRE)
    – Andhra Pradesh government
    – Maharashtra government
    – Gujarat government