UP govt preparing green hydrogen policy

The Uttar Pradesh government plans to meet its green hydrogen production capacity of nearly half 500,000 tonnes per annum by 2028. This move would help the state expand its clean and renewable energy portfolio.

The government is drafting its maiden Green Hydrogen Policy 2023 to ensure complete utilisation of domestic green hydrogen production. The sector is expected to create job opportunities for more than 60,000 people.

The state will set up two centres of excellence dedicated to green hydrogen research under the UP New and Renewable Energy Development Agency.

The current hydrogen demand in UP is approximately 900,000 tonnes per annum, especially in the fertiliser and refinery sectors.

At the UP Global Investors Summit 2023, the state received renewable energy investment proposals, including green hydrogen of over Rs 2.70 trillion from 20 companies.

The state would also plan on increasing hydrogen blending in regions where there is consumption of green hydrogen. The proposed plan would pave the way for setting up carbon dioxide recovery units.

Since water plays a vital role in the production of green hydrogen, the state will leverage the demand from the rivers.

Recently, Chief Minister Yogi Adityanath had asked officials to consult all stakeholders in the green hydrogen and renewable energy landscape before finalising the draft. He had also directed for creating water reserves near small and big rivers, and using rainwater to produce green hydrogen.

Adityanath said green hydrogen being a clean industrial fuel would help achieve the goal of net-zero carbon emissions. “The department should draft the policy after examining the Government of India’s green hydrogen policy,” he said.

Unveiled in February 2022, the green hydrogen policy offers cheaper renewable power and a 25-year financial waiver for interstate power transmission projects commissioned before June 2025. The policy also offers cheaper land in energy parks and dedicated zones for the local industry.

In the current decade, the Asia-Pacific region is projected to be the fastest growing in the global green hydrogen landscape.

Green hydrogen is produced by breaking down water in an electrolyser using renewable energy, so there is no carbon emission. Later, hydrogen can be combined with nitrogen to make ‘green’ ammonia, thus avoiding planet-warming hydrocarbons. Green ammonia is used to store energy and make fertilisers.

According to reports, the global green hydrogen market was valued at $1.83 billion in 2021, and is estimated to hit $90 billion by 2030, posing a compound annual growth rate of 54 per cent.