Bihar Rolls Out Draft Green Hydrogen Policy, Eyes Renewable-Driven Industrial Growth

Capacity and investment targets Under the proposed framework, the state plans to achieve an annual production capacity of 1 lakh tonnes of green hydrogen or green ammonia by 2031. To support this, Bihar will develop around 1 gigawatt of electrolyser capacity along with 2.5 gigawatts of dedicated renewable energy. The initiative is expected to attract investments of nearly Rs 16,000 crore and generate around 12,000 jobs, both direct and indirect, boosting the state’s industrial and economic growth. Ease of doing business push To draw investors, the government plans to implement a single-window clearance system for faster approvals related to environmental and industrial requirements. Authorities will also assist in land identification and ensure access to water resources, a critical input for hydrogen production. The Bihar Renewable Energy Development Agency will serve as the nodal agency, overseeing project approvals, registrations and overall implementation. Sectoral focus and hydrogen hubs In the initial phase, green hydrogen adoption will be promoted in sectors with established demand, including fertilisers and oil refineries. Over time, its use will expand to chemicals, iron and steel, heavy transport and city gas distribution. The policy also proposes the development of green hydrogen hubs, clusters where production and consumption facilities are co-located to improve efficiency and reduce logistics costs. Addressing cost and innovation challenges Recognising the high cost of green hydrogen production, the policy emphasises research, innovation and startup support. Incentives will be offered to startups engaged in electrolyser manufacturing and hydrogen technologies. Additionally, a Renewable Energy Development Fund will be set up to support skill development initiatives and research infrastructure, helping build a trained workforce for the emerging sector. Strategic push for clean energy The policy allows participation from companies, startups and individuals through an online single-window portal, with a mandate that all projects use new machinery and rely exclusively on renewable energy. With this initiative, Bihar aims to reduce industrial carbon emissions, create a complete clean energy value chain and position itself as a future exporter of green hydrogen and its derivatives in the global market. (KNN Bureau)