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Gujarat Cabinet Approves Draft Land Allocation Policy for Green Hydrogen Projects

Arnes BiogradlijaBy Arnes Biogradlija28/04/20233 Mins Read
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In a significant development, the Gujarat cabinet has approved the draft land allocation policy for green hydrogen projects, thereby taking the lead in India’s big leap towards green hydrogen manufacturing.

Private sector entities are eyeing their foray into green hydrogen manufacturing, and the state government has earmarked land parcels of 1.99 lakh hectares for five key players, including Reliance New Energy Limited, Adani New Industries Limited, Torrent Power Limited, ArcelorMittal Nippon Steel India Limited, and Welspun Group.

According to sources privy to the development, these players have received in-principle approval for land parcels in Kutch and Banaskantha districts, and the allocation will soon begin. The government has okayed 1.99 lakh hectares against a demand of 3.26 lakh hectares in company proposals at the rate of Rs 15,000 per hectare on a 40-year lease basis. The government will earn an estimated Rs 299 crore from these land parcels.

The government will accept Rs 2,998 crore as a security deposit from these five companies. As per government estimates, the total renewable power generation using green hydrogen on the proposed land is expected to be 99,814 MW with 39.95 lakh metric tonnes of green hydrogen production. The Reliance Group has already signed a memorandum of understanding with the state to set up a 100GW renewable energy park and green hydrogen park in addition to manufacturing electrolysers, with an investment of Rs 5.6 lakh crore. On the other hand, the Adani Group has also announced an ambitious investment plan worth $70 billion towards green energy projects.

The state government will soon announce a new policy incentivizing green hydrogen production in Gujarat. Green Hydrogen projects are expected to get priority sector status and will be especially highlighted in the upcoming Vibrant Gujarat Global Summit (VGGS).

Green hydrogen is produced by electrolysis of water using electricity generated from renewable sources, such as wind or solar. The technology has immense potential to provide carbon-free fuel for transportation and industries, thereby contributing to the fight against climate change.

The Gujarat government’s move towards green hydrogen manufacturing is a significant step towards achieving India’s target of generating 175 GW of renewable energy by 2022 and 450 GW by 2030. The country aims to have a 10% share of green hydrogen in its energy mix by 2030, with the potential to create thousands of jobs and reduce India’s dependence on imported fossil fuels.

As India’s energy demands grow, renewable energy sources like green hydrogen will play a crucial role in meeting these demands sustainably. The Gujarat government’s policy will not only promote the adoption of green hydrogen technology but also create a conducive environment for private players to invest in the sector, thereby fostering innovation and growth.

In conclusion, the Gujarat cabinet’s approval of the draft land allocation policy for green hydrogen projects is a significant milestone in India’s quest towards clean and sustainable energy. The move is expected to spur investment and innovation in the sector, create job opportunities, and help India achieve its renewable energy targets.

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