Uttar Pradesh’s Green Hydrogen Initiative Targets 1 million tonne capacity and 1.2 Lakh Jobs

Uttar Pradesh aims to revolutionize its energy sector by constructing one million tonne per annum (mtpa) green hydrogen production capacity, generating an estimated 120,000 jobs. This initiative stems from the state’s commitment to sustainable development and capitalizes on the burgeoning global green hydrogen market.

Investment Inflow and Policy Framework

• Investment proposals worth Rs 2.73 trillion have been secured from 20 companies during the UP Global Investors Summit in February 2023.
• The state is formulating a comprehensive policy offering incentives on capital outlay, land acquisition, and power transmission to attract investment in green hydrogen infrastructure.

Production and Applications of Green Hydrogen

• Green hydrogen, produced via electrolysis using renewable energy, promises zero carbon emissions.
• The state plans to leverage its abundant water resources, particularly its network of rivers, for efficient green hydrogen production.
• Green ammonia derived from hydrogen will be utilized for energy storage and fertilizer production.

Global Market Potential and Growth Projection

• The global green hydrogen market is projected to reach $90 billion by 2030, with a compound annual growth rate (CAGR) of 54% from 2021 to 2030.
• In 2021, the market was valued at $1.83 billion, indicating significant growth prospects.

Research and Innovation Centers

• Uttar Pradesh intends to establish two Centers of Excellence (CoE) dedicated to research and innovation in green hydrogen.
• These CoEs, under the purview of the UP New and Renewable Energy Development Agency, will drive technological advancements and enhance the state’s expertise in green hydrogen technologies.

Hydrogen Demand and Blending Strategies

• Current hydrogen demand in Uttar Pradesh stands at 900,000 tonnes per annum, primarily in the fertilizer and refinery sectors.
• The policy emphasizes increasing hydrogen blending in consumption regions to promote its widespread adoption.

Carbon Utilization and Environmental Sustainability

• The policy framework includes provisions for setting up carbon dioxide recovery units to utilize carbon emissions from biogas and other industries.
• This initiative aligns with the state’s commitment to environmental sustainability and carbon neutrality.