The Uttar Pradesh government is aggressively pushing the production of green hydrogen, particularly in the chemicals, fertilisers, and refineries sectors, which typically contribute to nearly 50 per cent and 5 per cent of the state’s industrial emissions, respectively.
As a part of the ‘Uttar Pradesh Green Hydrogen Policy 2024’, the state government has rolled out a series of administrative and financial incentives to promote green hydrogen/ammonia production, facilitate market creation, and boost demand aggregation.
Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) Director Anupam Shukla said here on Tuesday that at a time when the entire world is grappling with the severe consequences of climate change and is seeking sustainable and clean energy sources, green hydrogen, which is a potent alternative fuel produced using renewable energy, has emerged as a viable option.
Green hydrogen/ammonia are produced through water electrolysis using renewable or banked renewable energy. They are expected to serve as cleaner and more sustainable alternatives to fossil fuels and play a pivotal role in facilitating India’s transition to the net zero goal by 2070. Green hydrogen has significant potential for uptake in nitrogenous (N-) fertilisers, chemicals, refineries, heavy-duty vehicles, energy storage, and the iron and steel sectors.
“Our initial emphasis will be on using hydrogen in nitrogenous fertilisers and refinery industries in the state. Subsequently, we will also look at the application of green hydrogen in other emerging industries in line with the National Green Hydrogen Mission. One of our key aims will be to reduce the cost of green hydrogen production by encouraging research and innovation in production and consumption technologies,” he said.
UP has set a target of achieving a production capacity of one million metric tonnes of green hydrogen/green ammonia per year by 2029. The state government has received investment proposals amounting to close to Rs 1.15 lakh crore from 17 different entities for producing green hydrogen/green ammonia, which are expected to generate employment opportunities for around 20,000 people in the state.
Besides, he said that the state government has entered into agreements with 17 companies to boost green hydrogen production, marking a significant step towards sustainable energy development. Among the key players, UK-based Trafalgar Square Capital has committed to establishing a 10,000-tonnes-per-annum green hydrogen production facility near Lucknow. In addition, Indian textile giant Welspun Group plans to invest Rs 40,000 crore in a green hydrogen and green ammonia plant in Bulandshahr. Another Indian firm, Hygenco Green Energies Pvt Ltd, has expressed interest in setting up a 0.2 million-tonne green hydrogen facility in Prayagraj with an investment of Rs 16,000 crore. These projects are expected to accelerate the state’s transition to clean energy and drive substantial economic growth, the UPNEDA Director said.