Uttar Pradesh Targets Green Hydrogen Revolution

BY : ASHISH AWASTHI

In a bold and visionary move, the Uttar Pradesh Government is setting its sights on a monumental green energy initiative, with plans to construct a staggering one million tonne per annum (mtpa) green hydrogen production capacity. This ambitious project, spearheaded by the state’s Energy Minister, A K Sharma, is not just about transforming energy production but also holds the promise of generating a robust 120,000 jobs.

The groundwork for this transformative endeavor was laid during the UP Global Investors Summit in February 2023, where the state received investment proposals totaling a remarkable Rs 2.73 trillion for green hydrogen plants from 20 leading companies. These proposals, a testament to the state’s attractiveness for sustainable investments, have set the stage for Uttar Pradesh to emerge as a frontrunner in the burgeoning green hydrogen market.

Green hydrogen, produced by utilizing renewable energy in an electrolyser to break down water, stands as a beacon of sustainable innovation. This process ensures that the production is free from carbon emissions, aligning with global efforts to combat climate change. Furthermore, the state’s vast network of rivers provides a unique advantage, as water plays a pivotal role in the production of green hydrogen.

The global green hydrogen market, estimated to reach $90 billion by 2030, represents a colossal opportunity for Uttar Pradesh. The sector is projected to grow at an impressive compound annual growth rate (CAGR) of 54 percent during 2021-2030, having been valued at $1.83 billion in 2021. This move positions Uttar Pradesh not only as a leader in sustainable energy but also as a key player in the global green hydrogen landscape.

In addition to the ambitious production targets, Uttar Pradesh is gearing up to establish two centers of excellence (CoE) dedicated to research and innovation in green hydrogen. These CoEs, falling under the purview of the UP New and Renewable Energy Development Agency (UPNEDA), will contribute to advancing the state’s technological capabilities in this cutting-edge field.

The green hydrogen policy being formulated by the state will offer a comprehensive package of investment incentives. These include benefits on capital outlay, land availability, power transmission, and more, reinforcing the commitment to make Uttar Pradesh an attractive destination for green energy ventures.

Shri Anupam Shukla, Director of UPNEDA, emphasized the significance of this transformative policy, stating, “The ‘Green Hydrogen Policy 2023’ is poised to usher in large-scale green hydrogen production in the state. The policy has been crafted to provide financial incentives to relevant enterprises, beyond the ease of doing business.” He further said that, To promote green hydrogen/green ammonia production and this sector in the state, the government has prepared a draft of Uttar Pradesh Green Hydrogen Policy 2023. The process to get the said draft policy approved by the government is in the final stage.
For the establishment of Pumped Storage Hydro Plant (PSP) plants in the state, action is being taken to identify sites and implement them. For this work, the process has been started to set up 09 projects with a total proposed capacity of about 12,000 MW by 05 developer companies.
Bioenergy and solar energy portal has been developed by UPNEDA for effective and transparent approval of projects. Developers can register their projects through these portals for state government approval. All approvals are given through this portal. An online process for issuing NOC for the production of biodiesel from biodiesel projects has also been launched.

Furthermore, the policy aims to increase hydrogen blending in regions where green hydrogen is consumed, facilitating a seamless integration into existing energy ecosystems. It is anticipated that the policy will pave the way for the establishment of carbon dioxide recovery units, effectively utilizing carbon produced from biogas and other industries.

As Uttar Pradesh strides towards this green revolution, it not only reinforces its commitment to sustainable energy but also positions itself as a trailblazer in the global transition towards a greener, more sustainable future.