The Bihar Cabinet approved the draft Bihar Green Hydrogen Policy, 2026, establishing a state framework to accelerate clean energy adoption, scale up renewable power integration, and reduce reliance on imported natural gas.
Designated under the Bihar Renewable Energy Development Agency (BREDA) as the implementing nodal body, the intervention sets an annual production capacity target of 100,000 tons (0.10 MMTPA) of green hydrogen and green ammonia by 2031.
The framework:
To build a functional clean energy ecosystem, the framework establishes infrastructure benchmarks to be achieved over the next five years. The state aims to install 1 gigawatt (GW) of electrolyzer capacity alongside 2.5 GW of dedicated renewable energy capacity. The policy covers the complete value chain—encompassing production, local industrial consumption, distribution networks, and regional manufacturing of electrolyzers and related components.
Official perspective:
“The Bihar Cabinet has given its nod to the draft Bihar Green Hydrogen Policy, 2026, to promote renewable energy and reduce dependence on imports of natural gas. Besides reducing carbon emissions, the move will attract private investment in green hydrogen while generating new employment opportunities across the state,” said Arvind Kumar Chaudhary, Additional Chief Secretary, Cabinet Secretariat Department, Government of Bihar.
Backdrop:
Prior to this clearance, Bihar relied primarily on conventional grid power and thermal energy to meet its expanding industrial requirements. The policy aligns with India’s National Green Hydrogen Mission, creating a regulatory pathway for heavy industries—such as chemical manufacturing, steel production, and fertilizer operations at regional hubs like the Barauni Refinery—to transition from fossil-fuel-derived grey hydrogen to green alternatives produced via water electrolysis.
Impact:
According to state estimates, the execution of the Bihar Green Hydrogen Policy, 2026, is projected to deliver concrete economic and environmental outcomes:
- Private Capital: The policy framework is projected to attract ₹16,000 crore in private industrial investments across electrolyzer assembly facilities, green ammonia complexes, and renewable power infrastructure.
- Workforce: Project deployment, facility construction, and grid operations are expected to create 12,000 direct and indirect employment opportunities across technical and engineering roles.
- Industrial Decarbonization: Substituting green hydrogen for fossil feedstocks will lower the carbon footprint of regional manufacturing hubs while insulating local supply chains from global natural gas import volatility.
