Government Targets 1 Million Metric Tons of Green Hydrogen and Ammonia Production by 2028

The Uttar Pradesh government has set an ambitious target of achieving a production capacity of 1 million metric tons per year for Green Hydrogen and Green Ammonia by 2028. This initiative is aligned with the Green Hydrogen Mission and the policies of the Government of India, aiming to promote the consumption of Green Hydrogen and Ammonia within the state. To support research, development, and technological innovation, four Centers of Excellence (CoEs) will be established.

Currently, the demand for hydrogen in Uttar Pradesh is approximately 0.9 million metric tons per year, primarily utilized in the fertilizer and refinery sectors. To meet this demand and develop the necessary industrial infrastructure, the state is committed to actively promoting Green Hydrogen and Ammonia production.

Capital Subsidy for Green Hydrogen Projects:

The Uttar Pradesh government will provide a capital subsidy of up to 30% for Green Hydrogen projects. Additionally, the first five projects will be eligible for a capital subsidy of up to 40%, with a maximum limit of INR 225 crore.

Land and Water Resources Incentives:

• Land will be allotted to private developers at the rate of Rs 15,000 per acre per year.
• Public sector entities will receive land at INR 1 per acre per year.
• A 100% exemption on stamp duty will be provided.
• Land allocation for captive solar energy plants will be available at the rate of 5 acres per MW, with a maximum capacity of 20 MW per kiloton per year for Green Hydrogen production.

100% Duty Exemption for Green Hydrogen Projects:

• 100% rebate on electricity charges will be given for a period of 10 years.
• A 100% exemption on intra-state wheeling, transmission, and cross-subsidy surcharges will be provided for the first 10 years or the duration of the project, whichever comes first.
• Banking facilities will be available on a monthly basis for Green Hydrogen projects for 25 years or the duration of the project, whichever comes first.
• The renewable energy consumed for the production of green hydrogen in the project unit will be considered as part of the RPO for the project developer.

Boost to Green Hydrogen Projects in Uttar Pradesh:

• Green Hydrogen projects will be classified under the White Category for environmental clearances.
• To simplify investment, a land bank, sources of water availability and transmission infrastructure will be established.
• A dedicated single-window portal will be set up for Green Hydrogen projects.
• This policy aims to position Uttar Pradesh as a leader in Green Hydrogen production while accelerating industrial development in the state.

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