(MENAFN- KNN India)
Kerala, Jul 15 (KNN) In a significant boost to Kerala's green energy ambitions, the state government has received investment proposals totalling Rs 72,760 crore from four major companies seeking to establish green hydrogen and green ammonia facilities.
This development marks a crucial step towards realising the state's draft green hydrogen policy and aligns with India's broader National Green Hydrogen Mission.
A senior government official, speaking on condition of anonymity, revealed that the proposals are currently in the pipeline, with subsidy packages already formulated. Each project is set to receive approximately Rs 275 crore in capital expenditure subsidies.
Additionally, the state government plans to offer a 100 per cent exemption on electricity duty for these companies over a 25-year period, further incentivising investment in this clean energy sector.
One of the four companies has proposed two separate investments of Rs 22,062 crore and Rs 4,511 crore, respectively. The official also mentioned that land identification for these projects is underway, with areas around tea plantations in eastern Kerala being explored as potential sites.
This latest round of proposals builds upon earlier investments reported by ETEnergyWorld. On July 31, 2023, the publication noted that the state had received investment proposals worth over Rs 30,000 crore from two large companies for green hydrogen and green ammonia production plants, targeting both export and domestic markets.
More recently, on July 29, 2024, ETEnergyWorld reported that ReNew, a Nasdaq-listed decarbonisation firm, proposed a Rs 26,400 crore investment for a green hydrogen project in Kerala, with a planned production capacity of 220 kilo-tonnes per annum.
These investments are poised to play a crucial role in India's ambitious target of establishing a 5 MTPA green hydrogen production capacity by 2030, as outlined in the National Green Hydrogen Mission. The mission also aims to promote exports of green hydrogen and its derivatives.
The surge in green hydrogen investments is driven by its potential to decarbonise hard-to-abate sectors that heavily rely on hydrogen. Unlike conventional hydrogen production methods, green hydrogen production results in zero carbon emissions, making it a preferred solution for industries seeking to reduce their carbon footprint.
As Kerala's draft green hydrogen policy awaits final approval from the Council of Ministers, these substantial investment proposals signal a promising future for the state's clean energy sector.
The successful implementation of these projects could position Kerala as a leading hub for green hydrogen production and export, contributing significantly to India's clean energy transition and climate goals.
(KNN Bureau)
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