The Maharashtra state cabinet has approved the Green Hydrogen Policy, making Maharashtra the first state in India to announce such a policy. The policy promotes the production of green hydrogen, which is produced by splitting water using renewable energy sources. The state cabinet has allocated a budget of Rs 8,562 crore to provide subsidies and benefits to companies involved in generating green hydrogen.

The objective of the policy is to establish Maharashtra as a leader in the green hydrogen and its derivatives ecosystem in the country. Currently, the state has a hydrogen demand of 0.52 million tonnes per annum, which is expected to reach 1.5 million tonnes by 2030.

This policy aligns with the National Green Hydrogen Mission (NGHM), which was approved by the Union Cabinet earlier this year. The NGHM aims to make India a global hub for the production, usage, and export of green hydrogen and its derivatives. The mission has a budget of Rs 19,744 crore for the period from FY 2023-24 to FY 2029-30.

Hydrogen is an important industrial fuel with various applications. The majority of hydrogen production currently involves the use of natural gas, resulting in the release of large amounts of CO2. However, green hydrogen is produced through electrolysis using renewable energy sources, making it the most environmentally sustainable option.

Key Features of the Policy

• Projects procuring renewable energy through open access will receive incentives, including a 50% concession in transmission charges and a 60% concession in wheeling charges for the next ten years.
• Standalone power plants will receive a 100% concession in power tariff for the next ten years, while hybrid power plants will receive this concession for the next 15 years. These plants will also be exempted from cross subsidy and surcharge.
• Projects related to green hydrogen production need to be registered with the Energy Office.
• Land designated for green hydrogen projects will be exempted from local body tax, non-agricultural tax, and stamp duty.
• A subsidy of Rs 50 per kg will be provided for blending green hydrogen into gas for a period of five years.
• The first 20 green hydrogen refueling stations will receive a 30% capital cost subsidy, with a maximum limit of Rs 4.50 crore.
• The first 500 green hydrogen-based fuel cell passenger vehicles will be eligible for a capital cost subsidy of up to Rs 60 lakh per vehicle, subject to a 30% subsidy.
• An annual allocation of Rs 4 crore for ten years will be provided for the recruitment, training, and skill development of skilled manpower in the green hydrogen sector.

With the announcement of this policy, Maharashtra is taking a significant step towards promoting renewable energy and establishing itself as a leader in green hydrogen production. The incentives provided under the policy aim to attract investment and facilitate the growth of the green hydrogen industry in the state.