On 25th December, Chief Minister Yogi Adityanath of Uttar Pradesh instructed officials to finalise the formulation of a Green Hydrogen Policy. His direction enclosed a call to incentivise companies involved in the sector, urging officials to maximise support.
During a meeting to review the draft policy, the Chief Minister emphasised the significance of consulting investors and engaging with other stakeholders. The goal is to ensure the approach produces the utmost benefits for all parties involved.
Yogi Adityanath highlighted the importance of green hydrogen as a clean energy source, highlighting its role in attaining the net-zero target. He also stressed the need to support and promote this sector actively.
Chief Minister Yogi Adityanath proposed allocating land to companies involved in green hydrogen, accompanied by additional benefits like exemptions from stamp duty, electricity duty, and subsidies for capital and interest.
Furthermore, the Chief Minister instructed officials to thoroughly examine similar policies implemented by various states, seeking to draw insights from their experiences before finalising the Green Hydrogen Policy.
UP’s Green Energy Goal
Uttar Pradesh is set to achieve an ambitious target in the green energy realm, with plans to reach a green hydrogen production capacity of nearly 500,000 tonnes per annum by 2028.
The government is formulating its inaugural Green Hydrogen Policy for 2023. The objective is to maximise the utilisation of domestically produced green hydrogen, contributing to the state’s sustainable energy goals. Besides, the sector is expected to generate employment opportunities for over 60,000 individuals.
UP is laying the groundwork for progressing green hydrogen research by establishing two dedicated centres of excellence. These research hubs under the UP New and Renewable Energy Development Agency aim to push innovation and expertise.
With the current hydrogen demand in Uttar Pradesh hovering around 900,000 tonnes per annum, mainly driven by the fertiliser and refinery sectors, the state is strategically positioning itself for a substantial leap in green hydrogen capabilities.
The recent UP Global Investors Summit 2023 witnessed a surge of interest and investment in renewable energy, with proposals totalling over Rs 2.70 trillion from 20 companies, encompassing green hydrogen initiatives.
Recognising the pivotal role of water in green hydrogen production, the state plans to leverage its access to rivers to meet the water demand for this innovative and sustainable energy endeavour.
What is Green Hydrogen?
Green Hydrogen is crafted through electrolysis. This involves using renewable energy-generated electricity to split water molecules, ensuring a carbon-neutral footprint.
The critical distinction is that green hydrogen production, facilitated by electrolysers powered by renewable energy, is entirely devoid of carbon emissions. Subsequently, this hydrogen can be seamlessly integrated with nitrogen to produce ‘green’ ammonia.
Green ammonia serves a dual purpose: as an energy storage medium and a raw fertiliser material. This innovative cycle underscores the potential of green hydrogen as a clean energy source and a catalyst for sustainable practices in diverse sectors.