UP Green Hydrogen Policy 2024 — Incentive Assistance

Capital and land subsidy, electricity duty exemption, and SGST reimbursement for green hydrogen production and electrolyser manufacturing — we help confirm eligibility and prepare your UPNEDA application.

The Uttar Pradesh Green Hydrogen Policy, 2024 is a sector-specific incentive policy for green hydrogen and derivative (green ammonia, green methanol) production, and for electrolyser and associated equipment manufacturing. It is administered by the Additional Sources of Energy Department through the UP New and Renewable Energy Development Agency (UPNEDA).

The state already has a captive market for it: current hydrogen demand in Uttar Pradesh is about 0.9 million metric tonnes per annum, used mainly by the fertiliser and refinery sectors — industries that can switch to green hydrogen without waiting for new offtake to be built.

Key incentives

Capital subsidy: for green hydrogen/derivative production and electrolyser manufacturing units
Land subsidy: on project land
Electricity duty: exemption
Transmission & wheeling charges: concessional, with open access facilitation for renewable power
Water charges: concessional
SGST: reimbursement
Centres of Excellence: provision for 4, for R&D and technological innovation

These state incentives are additional to the Central government's SIGHT programme incentives for electrolyser manufacturing and hydrogen production — a project can stack both.

Who it's for

Green hydrogen, green ammonia, or green methanol producers
Electrolyser and associated equipment manufacturers
Fertiliser and refinery units in UP evaluating a captive green-hydrogen switch

Projects tend to make the most sense in two kinds of locations: near UP's existing refinery and fertiliser demand centres for offtake, and near renewable power generation in Bundelkhand for cheap, additional electricity to run the electrolysers.

How we help

This is an early-stage sector nationally, not just in UP — offtake contracting, not the incentive quantum, is what determines bankability. We help you get the fundamentals right before you build a DPR around subsidy value alone:

Confirming whether your project qualifies under production, or electrolyser/equipment manufacturing
Working out which incentive heads (capital, land, electricity duty, SGST) actually apply to your project
Approaching UPNEDA / the Additional Sources of Energy Department as the nodal point on your behalf
Checking how state incentives here stack with the Central SIGHT programme for electrolyser manufacturing

Message us your project stage and offtake plan, and we'll tell you — free of charge — whether you qualify and what the next step looks like.