Sat. Sep 23rd, 2023
    The Rise of Green Hydrogen: Indian States Join the Movement

    As the Indian government aims to become a global leader in green hydrogen production, states within the country are rolling out their own policies and incentives to support this renewable energy transition. The National Green Hydrogen Mission (NGHM), approved earlier this year, is set to drive the production of 5 million metric tons of green hydrogen annually by 2030, with an initial outlay of Rs 19,744 crore.

    In response, several states have started offering subsidies and incentives to promote the production of green hydrogen and renewable energy. These incentives include subsidies on transmission, reimbursement of state goods and services tax (SGST), government land allotments, and more. Importantly, the state-level incentives will complement the schemes rolled out by the central government.

    To ensure consistency and clarity, the Ministry of New and Renewable Energy (MNRE) released India’s standards for green hydrogen production, mandating a maximum of two kilograms of carbon dioxide equivalent emissions per kilogram of hydrogen produced. This standard will guide all states and union territories in their green hydrogen policies.

    Andhra Pradesh, for example, has set targets for green hydrogen and green ammonia production, aiming to create 12,000 jobs per million tons of green hydrogen produced. These targets align with the state’s abundant renewable energy potential. The government offers various incentives, such as subsidized lease of government land, exemption from land-use conversion charges and stamp duty, and more.

    Maharashtra has also approved a green hydrogen policy and allocated Rs 8,562 crore for subsidies and benefits to companies involved in green hydrogen production and electrolyzer manufacturing. The state aims to create 1.5 million tons of green hydrogen production capacity and offers exemptions from surcharges, transmission charges, and electricity duty.

    Gujarat plans to establish green hydrogen manufacturing as a priority sector and offers land allotment with long-term leases and annual rent. The state aims to become a hub for green hydrogen production.

    With states actively participating in promoting green hydrogen, India is well on its way to achieving its renewable energy goals and becoming a global leader in green hydrogen production and export.

    – [Source 1]
    – [Source 2]