The Uttar Pradesh Green Hydrogen Policy 2024 marks a significant step towards promoting clean energy and achieving India’s climate goals. As the global demand for green energy rises, this policy outlines the state’s ambitious plans to establish a green hydrogen and ammonia production ecosystem.
The initiative not only aims to reduce the state’s carbon footprint but also offers attractive incentives to encourage investment in this sector.
Vision and Objectives of UP Green Hydrogen Policy 2024
The policy’s primary objectives are aligned with the National Green Hydrogen Mission 2023:
- Promote Market Creation: Support the development of green hydrogen and ammonia production through fiscal and non-fiscal incentives.
- Research & Innovation: Encourage technological innovation to reduce the cost of green hydrogen production.
- Infrastructure Development: Establish infrastructure such as pipelines, renewable energy capacity, and manufacturing hubs for green hydrogen-related industries.
- Employment Generation: Create new jobs through skill development and industrial growth.
Key Goals by 2029
The policy sets ambitious targets for green hydrogen production and related infrastructure by 2029:
- Production Target: 1 million metric tonnes of green hydrogen/green ammonia annually.
- Centers of Excellence: Establishment of two Centers of Excellence (CoE) for research and innovation.
- Industrial Development: Focus on hydrogen consumption in key industries such as fertilizers and refineries, with plans to extend to sectors like iron and steel, city gas distribution, and more.
Development of Green Hydrogen/Ammonia Ecosystem
The policy emphasizes the creation of a robust ecosystem for green hydrogen/ammonia by:
- Promoting industrial clusters and green hydrogen valleys around consumption centers.
- Encouraging Carbon Dioxide Recovery (CDR) units for emission control.
- Supporting technological developments for hydrogen storage, transportation, and electrolyzer manufacturing.
UP Bhulekh at upbhulekh.gov.in
Fiscal and Operational Incentives
The Government of Uttar Pradesh offers a wide array of fiscal incentives under the policy, which includes:
- Capital Subsidy: Ranging from 10% to 30% of Eligible Capital Investment (ECI) based on the project’s size and location (up to ₹150 crore annual limit). For the first five projects, special incentives are provided, with a higher subsidy for Super Mega and Ultra Mega projects.
- SGST Reimbursement: Up to 100% reimbursement of Net State Goods and Services Tax (SGST) for up to 16 years based on project categories.
- Incentives for Startups: Up to ₹25 lakh per year for five years for startups focusing on green hydrogen production.
Land and Water Availability
The policy ensures that land and water, essential for green hydrogen production, are made available with the following provisions:
- Government Land: Available to public and private investors at highly subsidized rates (₹15,000 per acre per year for private investors).
- Water Allocation: The Irrigation and Water Resources Department will allocate water from nearby sources, with the developer bearing infrastructure costs for water supply.
Employment and Skill Development
The policy envisions the creation of 1,20,000 jobs through new projects established during the policy period. Skill development programs will help build a workforce suited to the green hydrogen and ammonia industries.
Operational Incentives for Green Hydrogen Projects
Key operational incentives include:
- 100% waiver on wheeling and transmission charges for intra-state sales of renewable energy.
- Electricity Duty Exemption: Applicable for 10 years for renewable energy consumed in green hydrogen production.
- Captive Use: 100% captive use of generated power, with priority allocation for transmission infrastructure.
उत्तर प्रदेश बेरोजगारी भत्ता ऑनलाइन आवेदन, UP Berojgari Bhatta
Research & Development (R&D) and Innovation
To lower production costs, R&D will focus on:
- Manufacturing electrolyzers domestically.
- Innovating in green hydrogen storage and transportation.
- Developing Type-4 storage tanks and fuel cells for hydrogen production.
Policy Implementation and Governance
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) serves as the nodal agency, ensuring smooth implementation of the policy. The policy also establishes multiple committees at state, district, and high levels to monitor and facilitate green hydrogen project development.
Employment Generation
With the establishment of green hydrogen projects, the policy aims to create around 1,20,000 direct and indirect jobs, contributing significantly to the local economy.
Conclusion
The Uttar Pradesh Green Hydrogen Policy 2024 is a forward-looking initiative designed to position Uttar Pradesh as a key player in India’s clean energy future. By offering comprehensive incentives and creating a conducive environment for green hydrogen projects, the state aims to attract investments and promote sustainable development.
Download UP Green Hydrogen Policy 2024 PDF
For more details and to download the full policy documents PDF using below links.