Following the launch of the National Green Hydrogen Mission, several states are taking significant initiatives in the green hydrogen space by launching their own policies and supporting greater participation of the private sector. Maharashtra and Kerala have taken several initiatives in this space and have outlined ambitious plans to drive green hydrogen adoption. At the 8th edition of the Green Hydrogen in India conference conducted by Renewable Watch, Narendra Nath Veluri, chief executive officer, Agency for New and Renewable Energy Research and Technology (ANERT), Kerala, and Anand Raidurg, general manager (project), Maharashtra Energy Development Agency (MEDA), gave presentations on their respective states’ green hydrogen initiatives. This article offers a brief overview of the insights shared by them…
Kerala
The state has drafted an ambitious Green Hydrogen Policy, which is currently in its final stages. In this policy, the state has set a target to become a leading green hydrogen/ammonia producer and exporter and a 100 per cent green hydrogen/ammonia consuming state by 2040.
The policy aims to reduce the cost of green hydrogen to Rs 200 per kg by 2030. To this end, the state budget has allocated Rs 2 billion for viability gap funding/grant/equity support to establish a green hydrogen hub. The policy also gives preference to floating solar and pumped hydro storage power projects as renewable energy sources for green hydrogen production, recognising the state’s unique geographical advantages.
The policy sets ambitious targets in terms of adoption and integration. It aims to achieve 30 per cent green hydrogen blending in the state’s total hydrogen consumption by 2027 and proposes that 25 per cent of the hydrogen use, especially in refinery and fertiliser industries, should be from green hydrogen or ammonia by 2030. To promote exports, the policy sets a target of establishing at least two strategic global partnerships focused on green hydrogen export.
To incentivise early adopters in the manufacturing space, the first 100 MW electrolyser deployment in the state will receive a 25 per cent capital subsidy and Rs 0.5 billion has been reserved for the first organisation setting up a green hydrogen hub in Kerala.
Planned initiatives in Kerala
Kerala has also submitted a funding proposal to the Government of India for developing a Hydrogen Valley Innovation Cluster (HVIC). This project aims to demonstrate the technical feasibility and scalability of hydrogen production and export. The state plans to develop decentralised green hydrogen clusters primarily around Kochi and Thiruvananthapuram, focusing on green hydrogen production, storage, distribution and applications in mobility, blending and biogenic green hydrogen. The total cost for developing the cluster is estimated at approximately
Rs 1.33 billion.
The HVIC plan comprises several key areas. These include hydrogen for transportation, which involves retrofitting houseboats, developing containerised battery and hydrogen fuel cells for vessels, and hydrogen buses. The plan also includes pilot-scale green ammonia production, biomass-based hydrogen production and the establishment of a 2.5 temperature-programmed desorption (TPD) hydrogen purification unit. In addition, research and development efforts will focus on the production technology and end-user applications. The plan also includes setting up a training and innovation centre, complete with lab facilities and training programmes. Finally, it aims to establish hydrogen blending and refuelling stations.
Furthermore, ANERT has submitted a proposal to the Automotive Research Association of India (ARAI) for pilot projects using green hydrogen in fuel cell and hydrogen internal combustion engine (HICE)-powered vehicles. The Rs 600 million project, part of ARAI’s larger Rs 4.96 billion scheme, involves a consortium approach led by ANERT, including hydrogen vehicle suppliers, refuelling station developers, green hydrogen developers and vehicle operators. The deployment plan includes two fuel cell electric vehicles and two HICE trucks, along with two hydrogen refuelling stations.
The KGH2 (Kochi Green Hydrogen Hub) is another flagship project in Kerala’s green hydrogen strategy. It projects an aggregate demand of approximately 120 kilo tonnes per annum (ktpa) of green hydrogen, requiring about 1 GW of electrolysers, 5 GW of renewable energy, grid infrastructure, storage and 27 km of pipeline. The hub plans to establish an export-oriented unit to cater to additional markets. The total investment needed is Rs 185.42 billion, to be implemented in three phases. This project has the potential to create around 3,600 jobs and is estimated to result in the abatement of 0.49 mt Co2e.
Other initiatives include a partnership between Cochin International Airport Limited and Bharat Petroleum Corporation Limited to set up a green hydrogen plant with a 100 Nm3 per hour output from a 500kW electrolyser system, scheduled to commence operations in January 2025. Several companies, including ReNew, Leap Green and Enfinity, have proposed large-scale green hydrogen and ammonia production facilities for export, with capacities ranging from 80 ktpa to 220 ktpa of hydrogen.
Cochin Shipyard Limited is also making significant contributions to the green hydrogen ecosystem. It launched India’s first fully indigenous hydrogen fuel cell catamaran ferry vessel in February 2024. Additionally, it is involved in building two hydrogen-powered feeder container vessels for Samskip, a Dutch logistics company, as part of the Sea Shuttle project. The shipyard has also been delivering hybrid electric water taxis for the Kochi Water Metro, further demonstrating Kerala’s commitment to
clean transportation.
Maharashtra
Maharashtra has taken significant steps in the green hydrogen space with the launch of the Green Hydrogen Policy, 2023. The policy has an ambitious target of achieving a green hydrogen production capacity of 500,000 ktpa by 2030. To support the policy’s objectives, several incentives and benefits have been introduced. Green hydrogen projects sourcing electricity from renewable energy plants can benefit from substantial exemptions on intra-state transmission and wheeling charges, with stand-alone renewable plants receiving a 50 per cent exemption and hybrid plants a 60 per cent exemption for 10 years. The policy also offers a 100 per cent exemption from electricity duty for 10 years for stand-alone renewable plants and 15 years for hybrid plants, significantly reducing operational costs. To promote the blending of green hydrogen with natural gas, a subsidy of Rs 50 per kg is available for five years. Additionally, the policy includes capital expenditure subsidies of 30 per cent for the first 500 green hydrogen fuel-cell buses and the development of the first 20 refuelling stations, alongside a subsidy of up to Rs 25 million per km for pipeline projects. An interest subsidy of 1 per cent on term loans for pipeline projects is also provided for a 10-year period. Furthermore, there is a 100 per cent stamp duty exemption for the land acquired for green hydrogen and renewable energy projects and the policy ensures access to water at reasonable rates for hydrogen generation.
The policy also emphasises the development of essential infrastructure and an ecosystem to support the growth of the green hydrogen industry. It aims to facilitate research and development initiatives, pilot projects and collaborations to enhance knowledge transfer within the sector. Additionally, the policy supports the development of storage and transport infrastructure for green hydrogen and its derivatives, alongside the necessary port infrastructure to facilitate international trade and exports. Workforce development programmes are also promoted to ensure inclusive participation from diverse gender and social groups in the green hydrogen ecosystem. To streamline processes and improve the ease of doing business, a single-window portal for green hydrogen projects will be created. Finally, the establishment of a Green Hydrogen Centre of Excellence is proposed to foster innovation and advanced research in this emerging field.
The state plans to establish strategic green hydrogen hubs that will create networks encompassing the entire value chain, from production to end-use. These hubs will enhance cost competitiveness, improve infrastructure utilisation and streamline business operations. Maharashtra has identified three major energy-consuming industrial clusters to evolve into green hydrogen hubs – the Mumbai-Navi Mumbai-Thane-Taloja cluster, which will focus on refineries, fertilisers, iron and steel, and aluminium; the Thal-Dolvi-Raigad cluster, targeting fertilisers, iron and steel, textiles and petrochemicals; and the Chandrapur-Nagpur-Bhandara-Wardha cluster, which will concentrate on iron and steel, metals, foundries, cement and textiles. These strategic clusters aim to leverage existing industrial strengths to drive the adoption of green hydrogen technologies.
Select industry developments
Maharashtra’s commitment to green hydrogen is already yielding results. MEDA has signed MoUs with eight green hydrogen developers to establish projects within the state. These projects collectively aim to produce 1,010 ktpa of green hydrogen, representing a total investment of Rs 2.913 trillion. The initiatives are expected to result in the reduction of 5.67 mt of carbon emissions and generate approximately 68,000
jobs, underscoring the significant environmental and economic impact of the policy.
NTPC Green Energy Limited has committed to investing Rs 800 billion. While ReNew e-Fuels has allocated Rs 664 billion, Avaada Green Hydrogen and Bafna Solar and Infra will invest Rs 500 billion. Other companies participating in green hydrogen investments in the state include JSW Energy with Rs 150 billion investment, Welspun Godavari GH2 with Rs 299 billion, INOX Air Products with Rs 250 billion and L&T Green Energy with Rs 100 billion. The Gensol Engineering Limited and Matrix Gas and Renewables Limited consortium has been chosen to develop a green hydrogen valley in Pune, Maharashtra. The project is supported by the Department of Science and Technology and National Chemicals Laboratories. They will also provide financial help of Rs 2.5 million for the project. The main objective is to supply green hydrogen to Pune’s speciality chemicals sector.
Conclusion
Maharashtra and Kerala are actively promoting the development of hydrogen and its derivatives with policy initiatives and industry partnerships. As these states continue to attract significant investments and foster collaboration across industry stakeholders, the development of the green hydrogen hubs will accelerate the uptake of green hydrogen in India. This is a positive development, given that both Maharashtra and Kerala are strategic states for hydrogen development as well as export of hydrogen and its derivatives.
