Bihar Government has issued its Draft Green Hydrogen Policy 2025, aiming to achieve a production capacity of 0.25 million metric tons per annum (MTPA) of green hydrogen and green ammonia by 2030.

The policy will facilitate the creation of production, consumption, and market elements throughout the entire value chain of green hydrogen/ammonia units. It notes that green hydrogen has immense potential for consumption in sectors such as nitrogenous fertilizers, chemicals, refineries, heavy vehicles, energy storage, iron and steel, and city gas distribution.

The initial emphasis will be on utilizing hydrogen in the state’s nitrogenous fertilizer and refinery industries. Subsequently, the policy will cover applications of green hydrogen in other emerging industries, aligning with the National Green Hydrogen Mission.

A single-window clearance facility will be provided to facilitate the seamless expansion of new green hydrogen and ammonia projects, as well as existing units. The policy will also provide fast-track approvals for environmental, industrial, grid connectivity, and clearances for open access, storage, and grid integration.

The state will prepare data on the availability of land, water, and power transmission systems. It will also assist potential investors in providing these resources per their requirements.

Developing Green Hydrogen Ecosystem

In addition to hydrogen blending in green hydrogen consumption areas, the policy will encourage the development of industrial clusters/centers/valleys for green hydrogen/ammonia. This will be achieved by promoting the production of green hydrogen and ammonia around consumption centers, while also facilitating cooperation in their implementation. The development of adequate infrastructure and pipelines will be encouraged if they meet the relevant national standards.

The policy will encourage carbon dioxide recovery units to utilize carbon emitted from biogas and other industries. It will also promote electrolyzer manufacturing.

Under the policy, adequate water supply, expansion of existing power transmission infrastructure and demand aggregation, and regulatory support will be provided for the development of green hydrogen and ammonia production units.

Research & Development

Challenges in newly emerging green hydrogen applications, including indigenous manufacturing of electrolyzers, improving system efficiency, and addressing transportation and storage, will be discussed systematically.

Startups producing or using green hydrogen and ammonia in Bihar will be encouraged and given financial incentives. The Bihar Renewable Energy Development Fund will be utilized for skill development and the creation of R&D centers and labs. Skill development centers will be established, and capacity-building and training sessions will be organized to develop a skilled workforce.

Nodal Agency

The Bihar Renewable Energy Development Agency (BREDA) will serve as the nodal agency for implementing this policy.

BREDA will handle the registration of green hydrogen and its derivatives projects, as well as the registration of renewable energy projects associated with these projects. Additionally, it will approve green hydrogen/derivatives, as well as the associated renewable energy projects.

It will develop a green hydrogen hub in the state to facilitate the planning and allocation of government land through relevant state authorities, as well as the leasing/acquisition of private land, and to enable the planning and allocation of water resources.

BREDA will also facilitate the planning and development of transmission infrastructure in renewable energy-rich areas, support R&D and pilot projects related to green hydrogen, and promote collaboration for knowledge transfer.

Additionally, BREDA will collect a one-time facilitation fee of ₹10,000 (~$113)/MW of electrolyzer capacity from project developers for coordination, implementation, monitoring, and compliance activities. Additionally, registration fees for the associated renewable energy capacity will be applied as specified by BREDA from time to time.

Benefits

To attract maximum investment, 100% of the SGST paid for all materials required for the development of green hydrogen projects will be reimbursed by the Commercial Tax Department for five years.

Government land will be made available in accordance with the existing state government policy. This land will be nontransferable. If the land is not used to establish green hydrogen projects within three years from the date of allotment, a review will be conducted by the state-level executive committee. If the committee recommends returning the land due to unsatisfactory progress of work, the land will be returned to the government.

Stamp duty and registration fees levied on the lease/sale/transfer of industrial land/sheds will be completely reimbursed. This reimbursement will be granted only for the first time and will not be applicable in subsequent stages of lease/sale/transfer.

Conversion fees/change in land use fees will also be reimbursed.

All green hydrogen projects will be provided with “White Category Status” for obtaining environmental clearance. These projects will be exempt from obtaining consent/no objection certificates to establish and operate under the Bihar Pollution Control Board’s Pollution Control Rules.

All incentives provided by the Government of India will also apply to these projects.

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