The Government of Bihar has taken a major step toward clean energy development by introducing the draft “Bihar Green Hydrogen Policy 2026.” The policy is designed to position the state as an emerging hub for green hydrogen production while supporting India’s long-term target of achieving net-zero carbon emissions by 2070. With a clear five-year roadmap, the state aims to build a strong ecosystem for the production and use of green hydrogen and green ammonia, both considered clean fuels produced using renewable energy.
One of the key targets of the policy is to achieve a production capacity of 1 lakh tonnes of green hydrogen or green ammonia annually by the year 2031. To support this goal, Bihar plans to develop around 1 gigawatt of electrolyzer capacity along with 2.5 gigawatts of renewable energy dedicated to these projects. This large-scale development is expected to attract investments worth nearly ₹16,000 crore and create around 12,000 jobs, both direct and indirect, contributing significantly to the state’s economic growth.
The government is focusing strongly on improving the ease of doing business to attract both domestic and international investors. A single window clearance system will be introduced to simplify and speed up the approval process for environmental and industrial requirements. In addition, the state will assist investors by identifying suitable land and ensuring the availability of water resources, which are essential for hydrogen production. The Bihar Renewable Energy Development Agency (BREDA) will act as the nodal agency, managing registrations, approvals, and overall implementation of the policy.
In the initial phase, the use of green hydrogen will be promoted in industries where demand is already high, such as fertilizer production and oil refineries. Over time, the scope will expand to other sectors, including chemicals, heavy transport, iron and steel, and city gas distribution. The policy also introduces the concept of green hydrogen hubs, where production and consumption facilities are developed in the same area. This approach helps in reducing costs and improving efficiency by sharing infrastructure and resources.
The policy also recognizes that high production costs are currently a major challenge in the green hydrogen sector. To address this, it encourages research and innovation activities aimed at making production more affordable. Startups working in electrolyzer manufacturing or hydrogen production will receive special incentives. The government also plans to set up a Renewable Energy Development Fund that will support skill development programs and the creation of research and development facilities. This will help build a trained workforce for the growing green hydrogen industry.
The policy is open to a wide range of participants, including companies, startups, and even individuals, who can apply for project development through a single window portal. It also clearly states that all projects must use new machinery and rely only on renewable energy sources such as solar, wind, or biomass.
Through this policy, Bihar aims to reduce carbon emissions in its industrial sector and create a complete clean energy value chain. At the same time, the state is looking to position itself as a future exporter of green hydrogen and its derivatives, making it an important player in the global clean energy market.
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