Uttar Pradesh Approves Green Hydrogen Policy, Target Of 1 Million Tonne Annual Production By 2028

The Uttar Pradesh government has approved a green hydrogen policy and a proposal to establish two 800 MW units in Anpara in collaboration with NTPC for Rs 8,624 crore.

These decisions were made at a cabinet meeting chaired by Chief Minister Yogi Adityanath as per a report by Business Standard.

According to Energy Minister A K Sharma, the green hydrogen policy aims to transition from grey hydrogen, which relies on electricity or gas, to green hydrogen.

The policy sets an ambitious target to produce one million metric tonnes of green hydrogen annually by 2028.

The green hydrogen policy will be effective for five years, during which industries establishing themselves will receive subsidies and incentives totalling Rs 5,045 crore.

These industries will be eligible for subsidies ranging from 10 to 30 per cent on capital expenditure, with the first five industries enjoying discounts of up to 40 per cent.

The policy also includes provisions for energy banking, offering a 100 per cent rebate on intrastate electricity charges and billing, and transmission charges for interstate transactions.

Additionally, there is a provision for a 100 per cent exemption in electricity duty.

The proposal to set up two 800 MW units in Anpara, Sonbhadra district will be advanced through a 50-50 partnership between the state government and NTPC.

The financial structure involves 30 per cent equity shared between the state government and NTPC, with the remaining 70 per cent financed through loans. The coal mine will be acquired from NCL (Northern Coalfields Ltd), located nearby, to facilitate cost-effective electricity production.

Two MoUs were signed with NTPC during the 2023 Global Investors Summit.

The Cabinet approved the first proposal to set up two 800 MW units in Obra D last year, while the second proposal to establish two 800 MW plants received approval from the Cabinet on Tuesday.