Uttar Pradesh receives Rs 1.15 lakh crore investment proposals from 17 firms for Green Hydrogen Production, Creating 20,000 Jobs
Lucknow: Uttar Pradesh government is looking to aggressively push the production of green hydrogen particularly in the chemicals & fertilisers and refineries sectors, to reduce 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 with a view to not only promote green hydrogen/ammonia production but also facilitate market creation and boost demand aggregation.
According to Anupam Shukla, Director, Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA)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 by the process ofelectrolysis of water using renewable energy or using banked renewable energy.
It is expected to serve as a cleaner and more sustainable alternative to fossil fuel and is likely to play a pivotal role in facilitating India’s transition to net zero goal by 2070. Green hydrogen has a large potential for uptake in Nitrogenous (N-) fertilisers, chemicals, refineries, heavy-duty vehicles, energy storage and iron and steel sectors.
“Our initial emphasis will be on use of hydrogen innitrogenous fertilisers and refinery industries in the State.Subsequently, we will also look at application of greenhydrogen in other emerging industries in line with theNational Green Hydrogen Mission. One of our key aims willbe to reduce the cost of green hydrogen production byencouraging research and innovation in production and consumption technologies,” Shukla said.
The State has set a target of generating 1 million metrictonne production capacity per year of Green Hydrogen/Green Ammonia by the year 2029. The state government has received investment proposals amounting to close to Rs1.15 lakh crore from 17 different entities for producing greenhydrogen/green ammonia generating employment opportunities for around 20,000 people in the State.
The State Government has received investment proposals /MoUs from 17companies to boost green hydrogen production, marking asignificant 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 is planning to invest Rs40,000 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 states transition to clean energy and drivesubstantial economic growth.
Green hydrogen revolution gaining momentum
In India, the green hydrogen revolution is gaining momentum, with the government, private sector, and start-ups playing crucial roles in establishing the country as a global leader in this transformative technology. The country’s vast renewable energy resources, particularly solar and wind,make it an ideal location for large-scale green hydrogen production. The International Energy Agency has noted that India’s renewable energy capacity can provide the low-cost electricity needed for green hydrogen production, potentially making it one of the most cost-effective producers globally.
At present green hydrogen primarily used in the N-fertilisers, with some demand in the refinery sector. The State will look to promote its production to meet the domestic demand and develop industrial infrastructure for the ecosystem.With a view to facilitate investments in the sector, the stategovernment has undertaken several initiatives including simplifying processes to regulatory reforms for ensuring ease of doing business.
The State has come up with a single window clearance facility to facilitate seamless expansion of new Green Hydrogen/Ammonia projects and existing units. It is also looking to prepare data on availability of land bank and water to help potential investors in providing land,water, and power transmission system as per requirement.The green hydrogen revolution in India presents a unique opportunity to transform the country’s energy landscape and lead global efforts towards a sustainable future. Uttar Pradesh, which targets to grow its economy to touch $1 trillion in the next few years, expects to become the country’s growth engine. Prioritising decarbonisation and contributing to the country’s climate goals would therefore be a crucial step in this direction, the official pointed out.
Reacting on the development, Manish Agarwal, State Secretary, Laghu Udyog Bharti reiterated that given the scale of climate change issues that plague the world, the switch to a greener approach is welcome. He said that the power of Renewable energy in the recent past has been for all to see and even Green Hydrogen is going to prove to be a game changer.
