The Uttar Pradesh government has taken a significant stride towards sustainability by approving a green hydrogen policy, signaling a shift from conventional to eco-friendly hydrogen production methods.

During a recent cabinet meeting, the government announced ambitious goals to produce one million metric tonnes of green hydrogen annually by 2028. This target underscores the state’s commitment to fostering a green economy and reducing carbon emissions.

Energy Minister A.K. Sharma reiterated the government’s dedication to promoting sustainability through the adoption of green hydrogen production methods. Sharma emphasized the pivotal role of green hydrogen in shaping a sustainable future for Uttar Pradesh.

To incentivize the establishment of green hydrogen industries within the state, the government has introduced a comprehensive package of incentives and subsidies amounting to INR 5,045 crore. These incentives aim to attract businesses to Uttar Pradesh and stimulate investment in green hydrogen production.

Businesses venturing into green hydrogen production will benefit from capital expenditure subsidies ranging from 10 percent to 40 percent. Additionally, they will enjoy a 100 percent rebate on intrastate electricity charges, exemptions on interstate transmission charges, and a complete waiver of electricity duty. These incentives are designed to facilitate industry growth and promote sustainable practices.

In a strategic move to bolster energy infrastructure, the cabinet has approved the construction of two 800 MW power units in Anpara, Sonbhadra district, in collaboration with the National Thermal Power Corporation (NTPC). This project, estimated at INR 8,624 crore, will follow a financial model comprising equity and loan financing. The proximity to Northern Coalfields Ltd. (NCL) ensures access to coal for cost-effective electricity production.