The Government of Bihar has released its Draft Green Hydrogen Policy 2025, aiming to achieve a production capacity of 0.25 million metric tonnes per annum (MTPA) of green hydrogen and green ammonia by 2030.

The policy seeks to develop the entire value chain for green hydrogen and ammonia projects—covering production, consumption, and market creation. It identifies key sectors for early adoption including fertiliser plants and refineries, with plans to later expand into chemicals, heavy transport, energy storage, iron and steel, and city gas distribution.

To accelerate project development and attract investment, the draft policy proposes a single-window clearance system for all project approvals, alongside fast-track environmental, industrial, grid connectivity, and open-access clearances. The state will assist investors in identifying and provisioning land, water, and transmission infrastructure based on project requirements.

Bihar plans to promote clusters, valleys, and hubs around major consumption centres, while supporting infrastructure and pipeline networks that meet national standards. The policy also encourages setting up carbon dioxide recovery units and local electrolyser manufacturing to strengthen the supply ecosystem.

Provisions have been included for research and development (R&D) to address key technological challenges such as efficiency, transport, storage, and the indigenisation of electrolyser technology. Startups engaged in green hydrogen production or consumption within Bihar will be eligible for incentives. The Bihar Renewable Energy Development Fund will support R&D, skill development, and training initiatives to build local capacity.

The Bihar Renewable Energy Development Agency (BREDA) has been designated as the nodal agency responsible for policy implementation, project registration, land allocation, transmission planning, and pilot project support. Developers will pay a one-time facilitation fee of ₹10,000 per MW of electrolyser capacity, along with registration charges for associated renewable energy generation.

To further encourage investment, the draft policy proposes 100% reimbursement of State GST (SGST) on project materials for five years, complete reimbursement of stamp duty, land transfer or lease duties, and conversion or land-use change charges. Projects will also be granted “White Category” environmental status, exempting them from additional pollution control consents.

With these measures, Bihar aims to position itself as a key participant in India’s green hydrogen economy, attracting clean-energy investment and driving low-carbon industrial growth.

Source:

https://www.mercomindia.com/bihar-draft-policy-green-hydrogen