With its 2040 renewable energy transition goal and 2050 carbon neutrality target, the Agency for New and Renewable Energy Research and Technology (ANERT) aims to position Kerala as a frontrunner in India’s green hydrogen economy.
The Green Hydrogen Policy, currently before the Cabinet for release by the end of FY 2025–26, represents a comprehensive approach that integrates policy enablers, capacity-building programs, and on-ground pilot projects, Harshil R Meena, CEO, ANERT said.
The State with its extensive coastline, world-class ports, skilled workforce, and strong renewable energy potential, offers immense opportunities to take the lead in green molecules. “Our cost target is to drive green hydrogen prices toward 30 per cent reduction by 2030 through demand creation, open access reforms, and strategic incentives”, he said.
The policy incentives include 25 per cent capital expenditure support for the first 100 MW of electrolysers, capped at ₹1.5 crore per MW (minimum eligible project size is 50 MW or above). “We have earmarked ₹50 crore for establishing the first Green Hydrogen Hub entity in Kerala”, he added.
“We have committed ₹133 crore to a comprehensive multi-pilot programme called Kerala Hydrogen Valley Innovation Cluster (K-HVIC) covering production, storage, transport, and end-use applications. Of this, ₹53 crore is supported by the Department of Science & Technology, with the balance funded by industry partners”, Meena said.
ANERT is also developing a mobility project with ₹34.84 crore in funding from the Automotive Research Association of India (ARAI) to deploy four hydrogen vehicles and establish two hydrogen refuelling stations. “We have announced ₹200 crore for Viability Gap Funding, grants, and equity participation to anchor hydrogen hubs in Kochi and Thiruvananthapuram, and have earmarked ₹300 crore to assemble and enable land parcels along the West Coast Canal corridor through PPP models”, he said.
Kerala’s green hydrogen strategy focuses on both domestic applications and export opportunities. For domestic substitution, the plan is to replace a significant portion of imported diesel, LPG, and grey industrial hydrogen with locally produced green hydrogen, paired with solar, pumped hydro, and future marine energy resources.
On the export front, the port-adjacent locations and logistics capabilities position the State to produce and ship green ammonia and, in the longer term, green hydrogen derivatives to international markets.
“We are developing initial Hydrogen Valleys at Kochi and Thiruvananthapuram to co-locate production facilities, mobility applications, industrial off-takers, and R&D centres”, he said.
The transition to green hydrogen offers Kerala strategic, economic, and environmental benefits, strengthening energy security by lowering dependence on imported power and fossil fuels.
On the availability of land to set up hydrogen plants, the ANERT CEO said that the HVIC will utilise state-owned and industry parcels near ports, refineries, logistics yards, and industrial estates. Along the West Coast Canal corridor, there was an allocation of ₹300 crore to enable multi-site aggregation and develop common infrastructure through PPP arrangements.
“By 2030, our target is approximately 30 per cent reduction by 2030 and striving for a further 50 per cent cut in the long term to bring the cost to or below ₹200 per kg through competitive renewable power, higher utilisation factors enabled by hybrid renewable energy systems with storage, and maturing supply chains”, Meena said.
Published on October 6, 2025