New Delhi: The Gujarat government has announced a new policy for green hydrogen manufacturing in keeping with India’s target of reducing carbon emissions by 45% by 2030.
The draft policy will be ready within two months. It will be done following consultations with stakeholders and in accordance with Ministry of Environment, Forest, and Climate Change guidelines, a press note stated.
Due to the use of green hydrogen, there will be a substantial reduction in carbon emissions as a result of the decreased consumption of fossil fuels (natural gas and coal), which are currently used primarily for the production of grey hydrogen, the note added.
Incentives for businesses
The government of Gujarat has also recently published its land policy for green hydrogen manufacturers.
In accordance with its Land Allotment Policy, Gujarat has also announced a number of incentives for businesses that invest in the state’s green hydrogen projects. The corporations are required to reach 50% of their green hydrogen production capacity within five years of plant commissioning and 100% within eight years.
Any unit or business may submit a land application for the production of at least one million metric tonnes per year. Applicants must have a minimum of 500 MW of solar, wind, and hybrid energy generation experience.
The applicant must be a consumer of brown, grey, and blue hydrogen with an annual demand for green hydrogen of at least one million metric tonnes. The annual land rent per hectare is Rs 15,000, and it will increase by 15% every three years.
Reliance and Adani groups have signed memorandums of understading (MoU’s) with the government totaling Rs 5.6 lakh crore and Rs 4.13 lakh crore respectively, committing to invest over Rs 10 lakh crore in this sector. Annually, this will produce three million tonnes of renewable hydrogen. Other businesses, such as ArcelorMittal and Torrent, have also signed MOUs for investment in green energy initiatives.
Increase in demand of renewable energy
The location of green hydrogen plants will be determined by factors including the availability of land, water resources, transmission and evacuation facilities, and port accessibility. Along the Kutch-Banaskantha border, the state administration has allocated 1,999,000 hectares of land as well for the project. During the initial period, land will be made available to interested businesses on a 40-year lease.
Given that the production of one kilogramme of green hydrogen (GH) requires 50 to 55 units of renewable energy power, large-scale GH production will significantly increase Gujarat’s demand for renewable energy. As envisioned in the state’s Land Policy, 2023, the renewable energy demand would also then increase by 165 billion units, the note stated.
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