Green Hydrogen Push: Gujarat Eyes 3 MMTPA Output By 2035

To support this target, the Energy Department has prepared a roadmap to add around 30 gigawatt (GW) of electrolyser capacity and 75 GW of renewable energy capacity. The policy estimates investments of up to ₹5 lakh crore in the green hydrogen ecosystem and the creation of approximately 6 lakh jobs by 2035.

For electrolysis-based green hydrogen projects, the policy offers a 20% capital subsidy, capped at ₹1 crore per megawatt (MW). Subsidies of up to ₹18 lakh per megawatt-hour (MWh) will be provided for Battery Energy Storage Systems (BESS), along with separate incentives for oxygen by-product bottling.

In addition, projects using renewable power will receive 50% reimbursement on transmission and wheeling charges for five years. Stamp duty and registration charges for land purchase or lease will be 100% reimbursed, subject to prescribed limits.

For biomass-based green hydrogen projects, a special capital subsidy of up to ₹8 crore per kTPA (kilo tonnes per annum) has been announced. The policy also provides capital subsidies of up to ₹35 crore for the development of green hydrogen hubs, which will include production, storage, and distribution infrastructure.

To promote hydrogen-based mobility, the first 20 hydrogen refuelling stations will receive 30% capital subsidy, capped at ₹4 crore per station. Subsidies of up to ₹50 lakh per vehicle will be provided for green hydrogen-powered buses and heavy vehicles.

Further incentives include a ₹50 per kg usage incentive for MSMEs adopting green hydrogen, applicable for five years. City Gas Distribution (CGD) operators will receive ₹50 per kg incentive for blending green hydrogen in CNG/PNG networks. The policy also supports desalination plants, port-linked export infrastructure, and green transmission corridors.

Additionally, the state has earmarked ₹100 crore in budgetary support for research and development, Centres of Excellence, skill development, and startups in the green hydrogen sector. Gujarat Power Corporation Limited (GPCL) has been designated as the nodal agency for implementation. The policy will be monitored through Apex and Executive Committees, while a Single Window Portal will ensure faster approvals and transparent execution.