The Bihar government has set a target to produce 100,000 metric tonnes of green hydrogen and green ammonia by 2031, backed by plans to build 1 GW of electrolyser capacity and 2.5 GW of renewable energy.
Under its Green Hydrogen Policy 2026, the state aims to drive decarbonisation, improve energy security and expand the use of clean energy across sectors such as fertilisers, refineries, transport and energy storage, Mercom India reported.
The policy, which will remain in force for five years, covers the entire value chain—from production and storage to transportation and consumption—while also promoting electrolyser manufacturing within the state.
Officials said the initiative is expected to attract investments of around ₹16,000 crore over the next five years. The government also plans to develop green hydrogen hubs, industrial clusters and export-focused infrastructure to position Bihar as a key destination for hydrogen-related industries.
To ease project implementation, the state has proposed a single-window clearance system and fast-track approvals for environmental, industrial and grid connectivity requirements. The Bihar Renewable Energy Development Agency will act as the nodal agency to facilitate approvals and coordinate with stakeholders.
Projects set up in Bihar will be eligible for a range of incentives, including a 10 per cent capital subsidy for electrolysers and related infrastructure, capped at ₹1 crore per MW, along with additional support for biomass-based hydrogen, refuelling stations and hydrogen-powered vehicles.
The policy also offers regulatory and fiscal benefits such as exemption from electricity duty, reimbursement of state GST, and waiver of transmission and wheeling charges for renewable energy used in hydrogen production. Green hydrogen projects will be classified under the ‘White Category’ to simplify environmental clearances.
To support adoption, industries procuring green hydrogen or ammonia produced within the state will receive a 5 per cent reimbursement for five years.
The policy further focuses on research, innovation and skill development, with provisions to encourage startups, promote domestic manufacturing of electrolysers and support pilot projects.
Separately, the Bihar Electricity Regulatory Commission has set a target for the state to meet 43.33 per cent of its energy needs from renewable sources by 2030, aligning with Bihar’s broader clean energy transition goals.
