In a significant move towards promoting green energy, the Uttar Pradesh Cabinet has given the green light to the implementation of the Uttar Pradesh Green Hydrogen Policy 2024. The primary objective is to produce one million tonnes of green hydrogen and green ammonia annually by 2028.
Under this groundbreaking policy, startups venturing into the field will receive substantial support from the state government. Each qualifying startup will be granted financial assistance of Rs 25 lakh per year for five years, alongside various other incentives. The policy aims to generate employment for 1.20 lakh individuals over the next five years, with a substantial budget allocation of Rs 5,000 crore.
To address environmental concerns associated with the production of gray hydrogen in industries such as fertilizers and petrochemicals, the policy emphasizes a shift towards green hydrogen production. The government aims to encourage this transition by offering financial incentives, with the initial five projects receiving up to a 40 percent subsidy to make green hydrogen production economically viable.
One of the notable features of the policy is the provision of government and village society land on a 30-year lease for establishing green hydrogen projects. Public areas will be leased at a nominal Re 1 per acre per year, fostering accessibility for a wider range of initiatives. However, private investors seeking the same land will be required to pay a lease value of Rs 15,000 per acre annually. The policy also includes a clause where the lease can be revoked if the land allocated for green hydrogen projects remains unused for three consecutive years.
The nodal agency responsible for the implementation of this policy is UP NEDA, and its operation is set to span five years. In addition to the financial incentives, the government is keen on creating a conducive environment for sustainable growth in the green energy sector.
This strategic move by the Uttar Pradesh government not only aims to boost the state’s green energy production but also positions it as a leader in sustainable practices. By encouraging startups to focus on green hydrogen and ammonia, the government not only supports environmental conservation but also paves the way for technological innovation and economic development.
As the world grapples with the pressing need for sustainable energy solutions, Uttar Pradesh’s initiative serves as a model for other regions to follow. The financial assistance and incentives provided under this policy are poised to catalyze a positive shift towards green hydrogen production, setting the stage for a cleaner and greener future for the state and the nation at large.
