Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Punjab Unveils Draft Green Hydrogen Policy Targeting 100 KTPA Capacity by 2030

The Punjab Energy Development Agency (PEDA) has released the draft Punjab Green Hydrogen Policy, aiming to achieve 100 kilo tons per annum (KTPA) of green hydrogen and ammonia production capacity by 2030. The policy extends incentives from the Punjab Industrial and Business Development Policy 2022 to new and expanding green hydrogen projects, tailored to project scale.

Key incentives include:

• 100% electricity duty exemption: During construction under the New & Renewable Sources of Energy Policy 2012.
• Exemption from charges: Exemption from land use change charges, external development fees, and stamp duty.
• No cross-subsidy: No cross-subsidy or additional surcharges on green energy used for hydrogen/ammonia production.
• Wheeling and transmission charge exemption: 50% intra-state wheeling and transmission charge exemption and a 25-year waiver on inter-state transmission charges for projects commissioned before December 31, 2030.

The policy also integrates with the Renewable Purchase Obligation (RPO) framework, allowing green hydrogen use to fulfill RPO targets. The Punjab State Power Corporation (PSPCL) may supply renewable energy at PSERC-determined tariffs.

Financial incentives include:

• Capital subsidy: Up to Rs 15 crore for biomass-to-hydrogen plants (capped at Rs 3 crore/TPD for up to 5 TPD) – applicable to the first 10 projects.
• Industrial user subsidy: Rs 50/kg for the first 10 industrial users of green hydrogen (for five years).
• Vehicle subsidy: Rs 50 lakh per hydrogen truck/bus (limited to 100 vehicles).
• Hydrogen refueling stations: 20?pital subsidy (up to Rs3 crore) for the first 10 hydrogen refueling stations.

This draft aligns with national initiatives under the National Green Hydrogen Mission, including pilot projects for hydrogen use in transport and steel production.