The Government of Andhra Pradesh has introduced the Green Hydrogen and Green Ammonia Policy-2023, with an ambitious target of producing 0.5 million tons per annum (MTPA) of green hydrogen and 2 MTPA of green ammonia over the next five years. The policy aims to create 12,000 jobs per MTPA of green hydrogen production and stimulate the establishment of manufacturing facilities for green hydrogen and green ammonia-related equipment.
Under the policy, developers involved in electrolysis of water using renewable energy or biomass for green hydrogen or green ammonia production in the state will be covered. The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) will serve as the nodal agency responsible for implementing the policy.
The state currently has a demand of approximately 0.34 MTPA of green hydrogen, primarily for nitrogenous fertilizers, and a demand of 0.13 MTPA in the refinery sector. The policy outlines various pathways for green hydrogen and green ammonia production, including open access, captive routes, third-party sales, and procurement from state distribution companies.
To encourage investment, the policy offers several incentives. These include reimbursement of State Goods and Services Tax (SGST), waiver of electricity duty, reimbursement of transmission charges, reimbursement of cross-subsidy surcharge, priority grid connectivity, allocation of government land at favorable rates, exemptions from land-use conversion charges and stamp duty, eligibility for existing industrial incentive programs, and access to central government incentives.
The policy aims to accelerate the development of green hydrogen and green ammonia projects, driving sustainable energy growth and positioning Andhra Pradesh as a leader in the renewable energy sector.
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