Bihar is expecting investments of approximately ₹16,000 crore in the green hydrogen industry, with the potential to generate around 12,000 jobs. The initiative is intended to promote environmental protection and reduce dependence on imported petroleum products.
The state has set a target of producing 100,000 tonnes of green hydrogen annually within the next five years. To achieve this, the Bihar Green Hydrogen Policy 2026 is being implemented, with ₹1,040 crore allocated to incentivise investment in the industrial sector.
The policy is expected to attract approximately ₹16,000 crore in investment and create employment opportunities for around 12,000 people. It is also expected to support environmental protection and reduce the state’s dependence on foreign petroleum supplies.
Implementation of the policy is projected to reduce carbon dioxide emissions by approximately one million tonnes. It is also expected to lower dependence on natural gas and promote clean energy.
Green hydrogen is primarily produced by using electricity to split water into hydrogen and oxygen. Its adoption could also help reduce expenditure on imported natural gas used to meet energy requirements.
India has set a target of reducing the carbon intensity of its gross domestic product (GDP) by 45% by 2030, compared with 2005 levels. Bihar is expected to make an important contribution towards achieving this national target.
Green Hydrogen Policy to be a milestone, says Minister
Bihar Energy Minister Shailesh Kumar, also known as Bulo Mandal, said the Bihar Green Hydrogen Policy 2026 would prove to be a milestone in the state’s clean energy transition.
According to the minister, the policy will strengthen the state’s development efforts while advancing environmental protection and public welfare. He said it would play an important role in positioning Bihar as a major centre for green energy and industrial development.
The policy is expected to create new employment opportunities for young people, strengthen the state’s economy and encourage environmental protection.
The state government aims to establish Bihar as a leading centre for clean energy, green industrialisation and sustainable economic growth. The minister said the government would continue making sustained efforts to achieve these objectives.
Bioenergy Business Analysis
Bihar’s Green Hydrogen Policy 2026 could position the state as an emerging destination for clean energy investment, with a target of producing 100,000 tonnes of green hydrogen annually within five years and an allocation of ₹1,040 crore to support industrial investment. The projected ₹16,000 crore in investment and potential creation of 12,000 jobs indicate the scale of the state’s ambitions.
For India’s wider energy transition, green hydrogen could help decarbonise hard-to-abate sectors, reduce reliance on fossil fuels and support the development of domestic clean energy supply chains. However, achieving these targets will depend on the availability of competitively priced renewable electricity, water resources, production infrastructure, storage and transport networks, as well as long-term demand from industrial consumers.
