Bihar unveils green hydrogen policy targeting 0.10 MMTPA by 2031

The Government of Bihar has released the Bihar Green Hydrogen Policy 2026, targeting production of 0.10 million metric tonnes per annum (MMTPA) of green hydrogen or green ammonia by 2031. The policy will remain in force for five years and is aligned with India’s National Green Hydrogen Mission, to position the state as a hub for production and export.

The policy outlines plans to develop around 1 GW of electrolyser capacity and 2.5 GW of renewable energy capacity linked to green hydrogen projects. The state expects investments of about Rs 16,000 crore and employment generation for 12,000 people. Initial applications will focus on nitrogenous fertilisers and refinery sectors, with expansion into chemicals, heavy mobility, energy storage, and steel envisaged over time.

Bihar Renewable Energy Development Agency (BREDA) has been designated as the nodal agency for implementation, responsible for project approvals, registrations, and development of hydrogen hubs. Eligible participants include companies, startups, cooperatives, and individuals. The policy provides incentives such as reimbursement of 10% of capital expenditure on electrolyser stacks and associated equipment, capped at Rs 1 crore per MW. Additional provisions include support for biomass-based projects, hydrogen refuelling infrastructure, and procurement of hydrogen-powered buses and heavy vehicles.

Developers will also benefit from exemptions on electricity duty, stamp duty, land conversion charges, and transmission and wheeling charges, along with facilitation of open access for renewable energy. Green hydrogen projects have been accorded “White Category Status” for environmental clearance, exempting them from certain pollution control requirements. A State Level Empowered Committee led by the Chief Secretary will oversee implementation, address issues, and approve large-scale projects. In case of conflicts, provisions of the Bihar Renewable Energy Policy 2025 will prevail.

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