Gujarat to allot land for green hydrogen production

IH2A Estimates 6.8 GW PA Electrolyser Capacity in India by 2030

A high-level committee appointed by the Gujarat state government has tentatively approved the allocation of 63,000 hectares of land for the production of green hydrogen using solar, wind, and wind-solar hybrid energy sources. It is projected that Gujarat’s annual production of green hydrogen could reach 1.2 million metric tonnes.

Previously, the Gujarat government stated its intention to attract $20-25 billion in investments by 2030 to establish 1 million metric tonnes per annum (MMPTA) of green hydrogen capacity. This includes plans for 8-10 gigawatts (GW) of electrolyzer capacity, estimated to cost between ₹45,000-57,000 crore, and 20-30 GW of renewable energy capacity.

The newly allocated land parcels, situated in Kutch, Banaskantha, and Patan districts, supplement the 1.99 lakh hectares already designated for green hydrogen production. The recent allocation, approved by the committee in March, will be granted to a company with existing diverse business investments in Gujarat, which has previously received land for the RE initiatives.

Although a policy for allocating government wasteland for green hydrogen generation from renewable sources has been in effect since 2023, the Gujarat government intends to introduce a policy offering financial incentives to green hydrogen projects in the future.

Five entities, including Reliance New Energy Limited (74,750 ha), Adani New Industries Limited (84,486 ha), Torrent Power Limited (18,000 ha), ArcelorMittal Nippon Steel India Limited (14,393 ha), and Welspun Group (8,000 ha), have received approvals for land parcels in Kutch and Banaskantha districts. Among them, Reliance Group has already entered into a memorandum of understanding with the state to establish a 100 GW renewable energy park and green hydrogen park, along with electrolyzer manufacturing facilities, with an investment of Rs 5.6 lakh crore.

Similarly, the Adani Group has announced a substantial investment plan totaling $70 billion for green energy projects.