Uttar Pradesh Green Hydrogen Policy 2024

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The Uttar Pradesh Green Hydrogen Policy 2024 is a strategic initiative

The Uttar Pradesh Green Hydrogen Policy 2024 is a strategic initiative designed to foster the production and use of green hydrogen and green ammonia within the state. The policy is aimed at making Uttar Pradesh a leading hub for green hydrogen, in line with India’s broader energy transition goals. Here’s a summary of the policy with specific targets, incentives, and ease-of-doing-business measures:

Policy Objectives and Targets:

• Production Capacity: Uttar Pradesh aims to achieve a production capacity of 1 million metric tonnes per year of green hydrogen/green ammonia by 2028.
• Promotion of Consumption: The policy promotes the consumption of green hydrogen and ammonia within the state, aligning with the National Green Hydrogen Mission and policies of the Government of India.
• Centers of Excellence (CoEs): The state plans to establish 4 Centers of Excellence for research, development, and technological innovation in green hydrogen production and utilization.
• Meeting Current Demand: With the current hydrogen demand in Uttar Pradesh at about 0.9 million metric tonnes per annum (MMTPA), primarily in the fertilizer and refinery sectors, the policy focuses on meeting domestic demand while building the necessary industrial infrastructure.

Key Incentives:

1. Capital Subsidy:
   • Standard Subsidy: Up to 30% capital subsidy for green hydrogen/green ammonia production projects.
   • Enhanced Subsidy: The first 5 projects are eligible for up to 40% capital subsidy, capped at a maximum of INR 225 crore.
2. Land & Water Resources Incentives:
   • Land Provision for Developers:
     • Private developers: Land available at INR 15,000 per acre per year.
     • Public sector entities: Land available at a nominal rate of INR 1 per acre per year.
   • Stamp Duty: 100% exemption on stamp duty for land acquisition for green hydrogen projects.
   • Land for Captive Solar Plants: Land can be allotted at 5 acres per MW for captive solar energy plants, with a maximum capacity of 20 MW per kilo tonne per year of green hydrogen production.
3. Power Supply Incentives:
   • Electricity Duty: 100% exemption on electricity duty for the first 10 years or the life of the project, whichever is earlier.
   • Transmission Charges: 100% exemption on intra-state wheeling, transmission, and cross-subsidy surcharges for the first 10 years or the life of the project, whichever is earlier.
   • Banking Facility: Monthly banking facility for green hydrogen projects will be provided for 25 years or the life of the project, whichever is earlier.
   • Renewable Purchase Obligation (RPO): Renewable energy consumed for green hydrogen production will be counted towards the RPO of the project developer.

Ease of Doing Business:

1. Environmental Clearances:
   • White Category Status: Green hydrogen projects will be classified under the White Category for environmental clearances, which typically involves less stringent regulatory scrutiny.
2. Infrastructure Support:
   • Land Bank: A dedicated land bank will be created, along with identification of water sources and transmission infrastructure, to support green hydrogen projects.
3. Single-Window Clearance:
   • A single-window portal will be set up exclusively for green hydrogen projects to streamline the approval process and facilitate ease of doing business.

This policy is positioned to catalyze the development of green hydrogen and green ammonia production in Uttar Pradesh, providing substantial financial incentives, infrastructure support, and regulatory ease to attract investment and foster innovation in this critical sector.