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UP Unveils Rs-5000-Cr Incentive Package To Boost Green Hydrogen Production

By Outlook Planet Desk March 11, 2024

Aiming to reach 1 MT of green hydrogen production and create 120,000 jobs in the sector, the UP Government has rolled out an attractive incentive and financial support package to woo startups

UP Unveils Rs-5000-Cr Incentive Package To Boost Green Hydrogen Production
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The UP government is galvanising green hydrogen production for the industrial, petrochemical, and transportation sectors with a Rs 5,000 crore incentive and support package. As per its 2024 Green Hydrogen Policy, the state expects to make 1 million tonnes (mt) of green hydrogen annually by 2028, creating 120,000 job opportunities. 

Approved by the Yogi Adityanath Cabinet, the policy will give a fillip to every startup dedicated to green hydrogen research and production with an annual incentive of Rs 25 lakhs spanning five years. The aim is to minimise carbon emissions and fuel India's net-zero goal by incentivising the state's fertiliser and petrochemical industry to migrate to green hydrogen from the carbon-emitting grey hydrogen.  

The demand for green hydrogen from the state's hydrogen demand is estimated to be 900,000 tonnes per annum. 

At the UP Global Investors Summit (GIS) 2023, the state received proposals of nearly Rs 2.70 trillion for green hydrogen investment from about 20 companies. The latest incentive offer is on top of the land offered by the state on a 30-year lease for green hydrogen projects at Rs 1 per acre to PSUs and Rs 15,000 per acre to private investors. Further, the green hydrogen projects will be white-hatted for easy environmental clearance.

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