In order to lower costs over time, the Uttar Pradesh Draft Green Hydrogen Policy 2022 emphasizes the value of supporting innovation.
The state currently needs about 0.9 million tonnes of hydrogen per year, mostly for the manufacturing of nitrogenous fertilizers. The policy concentrates on the chemical, fertilizer, and refinery industries in an effort to move the state towards a green hydrogen economy. For the following five years, the policy will be in force.
Additionally, by 2028, the state hopes to blend 20% green hydrogen into all hydrogen used by its existing fertiliser and refinery units. The draft policy suggests a capital expenditure subsidy in 2024 equal to 60% of the electrolyser’s cost. The minimum capacity needed to be eligible for the subsidy is 50 MW or more. The financial incentive from the state government will be cut in half to 20% by 2027.
In addition, a committee at the state level will be formed to handle all the duties, including the monitoring and evaluation of the policy. Additionally, the strategy suggests giving R&D centers and businesses a 30% one-time financial support for technology purchase up to a maximum of Rs 50 million.
The center will also support a skill-development initiative to increase the capacity of the state and prepare a workforce for the switch to green hydrogen and ammonia.