Gujarat gives nod land allocation for green hydrogen projects

The government of Gujarat has approved a draft land allocation policy for green hydrogen projects, with land parcels totalling 1.99 lakh hectare set aside for five major industrial houses.

The move comes as India pushes towards a major transition to green hydrogen production, with the government also preparing an incentive policy to encourage its production. The power policies of five states have been studied by the state government’s energy department in preparation for the policy, which will bring all energy policies under one umbrella.

The state cabinet has approved the land allocation for Reliance New Energy Limited, Adani New Industries Limited, Torrent Power Limited, ArcelorMittal Nippon Steel India Limited, and the Welspun Group, with a security deposit of Rs 2,998 crore. Against the companies’ proposals for 3.26 lakh hectares, 1.99 lakh hectares were approved on a 40-year lease basis at Rs 15,000 per hectare, with the government earning approximately Rs. 299 crore. The entire amount of renewable energy using green hydrogen on the planned land is anticipated to be 99,814 MW, with a production of 39.95 lakh metric tonnes of green hydrogen.

The Reliance Group and Adani Group have already made significant investment pledges in the sector, with the former agreeing to a memorandum of understanding to invest Rs 5.6 lakh crore in the construction of a renewable energy park and green hydrogen park, and the latter announcing a bold investment strategy totalling $70 billion for green energy projects. Gujarat’s state government is expected to reveal a new initiative soon to encourage the generation of green hydrogen, with Green Hydrogen projects predicted to receive priority sector status and special attention at the upcoming Vibrant Gujarat Global Summit.