UP Government Green lights Green Hydrogen Production Facility

The Uttar Pradesh government approved a green hydrogen policy on Tuesday, as well as a proposal to build two 800-MW units in Anpara in collaboration with NTPC for Rs 8,624 crore. The decisions were made during a Cabinet meeting chaired by Chief Minister Yogi Adityanath.

"So far, hydrogen production technology has relied on electricity or gas, referred to as grey hydrogen. A significant effort is currently underway to convert grey hydrogen to green hydrogen. Energy Minister AK Sharma stated in an official release that the policy outlines an ambitious goal of producing one million metric tonnes of green hydrogen per year over the next four years, by 2028.

The green hydrogen policy has been set for 5 years. Industries establishing themselves within this timeframe will receive subsidies and other 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. Additionally, the policy includes provisions for energy banking, offering a 100 per cent rebate on intrastate electricity charges and billing and transmission charges for interstate transactions," Sharma said.

Furthermore, there is a provision for a 100% exemption from electricity duty, he added.

The Cabinet also approved a proposal to build two 800 MW units at Anpara in Sonbhadra district in collaboration with NTPC for a total cost of Rs 8,624 crore.

This initiative will move forward in a 50-50 partnership between the state government and NTPC.

The financial structure includes 30 percent equity shared by the state government and NTPC, with the remaining 70 percent financed through loans. The coal mine will be purchased from NCL (Northern Coalfields Ltd), which is nearby, paving the way for the production of cost-effective electricity, Sharma explained.