The Kerala government has received investment proposals worth INR 72,760 crore from four major companies to attain subsidies under the state’s draft green hydrogen policy for setting up green hydrogen and green ammonia facilities in the state.
According to a senior government official, the proposals are in the pipeline and packages have been worked out. The companies plan to export green ammonia aiming at an export-led growth.
The subsidy on capex to these four companies will be about INR 275 crore for each project. The state government plans to give 100% exemption on electricity duty to these companies for 25 years.
One of these four companies has proposed two separate investment amounts of INR 22,062 crore and INR 4,511 crore.
The identification for land for these projects is underway and areas around tea plantations on the eastern side of Kerala are being explored, the official said on the condition of anonymity.
ETEnergyWorld on 31 July 2023 reported that the state government received investment proposals worth over INR 30,000 crore from two large companies for setting up green hydrogen and green ammonia production plants, its export, and also for domestic use.
On 29 July 2024, ETEnergyWorld reported that ReNew, a Nasdaq-listed decarbonisation firm, proposed to invest INR 26,400 crore for a green hydrogen project with 220-kilo-tonnes-per-annum of green hydrogen production capacity in Kerala.
Kerala’s draft green hydrogen policy has been approved and is awaiting the approval by the Council of Ministers.
India aims to set up 5 MTPA green hydrogen production capacity by 2030 and promote exports of green hydrogen and its derivatives under the National Green Hydrogen Mission.
Green hydrogen production involves zero carbon emission, hence it is a preferred way to decarbonize hard-to-abate sectors, which are intensively using hydrogen.
