Gandhinagar: The Gujarat government has rolled out its Green Hydrogen Policy, aiming to position the State as a leading hub for green hydrogen production and accelerate the transition toward clean energy-driven industrial growth.

Under the policy, the State government targets investments of over ₹5 lakh crore in the green hydrogen and renewable energy ecosystem, with the potential to generate nearly six lakh direct and indirect employment opportunities across associated sectors.

The policy outlines plans to develop 3 million tonnes per annum (MTPA) of green hydrogen production capacity. This will be supported by the creation of 30 GW of electrolyser capacity and 75 GW of renewable energy capacity, forming an integrated value chain to support industrial decarbonisation and green fuel production.

One of the objectives of the policy is also to reduce, at least, 2 MMTPA of natural gas consumption through the adoption of green hydrogen and eliminate 5 MMTPA of CO emissions within the State.

To realise these objectives, the policy focuses on strengthening the entire value chain, from production and storage to transportation and application, while promoting public-private partnerships, innovation, skill development, and research in electrolysers and fuel cell technologies.

The policy defines eligibility criteria for developers and projects and introduces a structured selection process, including competitive bidding and approvals through Apex and Executive Committees.

It also lays out incentives for electrolyser-based projects, biomass-based hydrogen projects, and development of green hydrogen hubs. These include capital subsidies, reimbursement on grid charges, land registration and stamp duty benefits, support for refuelling infrastructure, green hydrogen buses, and heavy-duty vehicles.

MSMEs using green hydrogen and City Gas Distribution operators undertaking blending also receive incentives under defined caps.

The State also focuses on enabling infrastructure such as land allocation through GIDC, water support including desalination facilities, renewable energy linkages, dedicated green energy transmission corridors, storage and transport systems, and port infrastructure to facilitate exports.

A dedicated budget also supports R&D programmes, start-ups, Centres of Excellence, and pilot initiatives.

To ensure effective execution, the policy establishes a three-tier governance framework comprising an Apex Committee, Executive Committee, and Gujarat Power Corporation Limited as the nodal agency.

A single-window portal, milestone-linked subsidy disbursement system, and periodic policy reviews are also included for transparency and efficiency.

With its Green Hydrogen Policy 2025, Gujarat positions itself as a frontrunner in India’s green energy transition, aiming to build a robust hydrogen economy, attract large-scale investments, and significantly contribute to national and global decarbonisation efforts.

At present, Gujarat’s green hydrogen demand is estimated at around 1.3 MTPA, driven largely by refineries, steel, and fertiliser industries. According to industry projections, this demand is expected to rise to nearly 2 MTPA by 2030, reinforcing Gujarat’s strategic role in India’s net-zero and clean manufacturing ambitions. DeshGujarat