Punjab Unveils Draft Green Hydrogen Policy To Boost Clean Energy And Biomass-Based Economy

The Government of Punjab has introduced the draft “Punjab Green Hydrogen Policy 2023” to promote green hydrogen and ammonia production using renewable energy sources, particularly from agricultural biomass. This initiative supports India’s climate goals and aims to establish Punjab as a leader in the green hydrogen sector.

The policy aligns with the objectives of the National Hydrogen Mission 2022 and India’s net-zero carbon commitment by 2070. With global green hydrogen markets expanding rapidly and expected to grow into a USD 2.5 trillion industry by 2050, Punjab sees a strong opportunity to contribute significantly to this shift. The state is already rich in biomass from crops like paddy, sugarcane, and cotton, which can be converted into biogas and then into green hydrogen.

Punjab is targeting a production capacity of 100 kilotonnes per annum of green hydrogen and ammonia by 2030. To support this, the policy encourages innovative technologies such as biomass gasification, electrolysis of wastewater, and hydrogen blending. It also aims to build a complete value chain including production, storage, transport, and usage of hydrogen across sectors like transport, steel, and fertilizers.

To facilitate project development, the state government will offer fiscal incentives, regulatory simplification, and infrastructure support. This includes a 100% exemption on electricity duty during construction, stamp duty waivers for land lease and registration, and exemption from certain charges on green energy use. A special capital subsidy of up to ₹15 crore will be provided to biomass-based hydrogen production units, and financial incentives are announced for hydrogen-powered vehicles and refueling stations.

The Punjab Energy Development Agency (PEDA) is appointed as the nodal agency for this policy. All project developers must seek validation and approval through PEDA, and the Punjab Bureau of Investment Promotion will provide single-window clearances to simplify processes.

The policy also gives importance to research, development, and innovation. The government plans to set up a Centre of Excellence to work with research institutions and industry to overcome technological challenges. It will also promote skills development for hydrogen sector jobs.

Infrastructure development is another key pillar. The policy proposes creating hydrogen parks, developing transmission networks, and building hydrogen-ready pipelines. Preference will be given to projects using treated wastewater for electrolysis and to those located in designated safe zones.

Banking facilities for renewable energy used in hydrogen production are also provided, and incentives will be over and above those announced by the central government. The aim is to attract investment, generate employment, and transition the economy toward sustainable development.

Overall, this policy marks a significant step towards making Punjab a hub for clean energy production while supporting economic growth and environmental goals.