Key Takeaways
- Bihar has approved the draft Green Hydrogen Policy, targeting 100,000 metric tonnes perBihar Green Hydrogen Plan Links Barauni Refinery, Hindustan Fertiliser; India Targets 5 Million Tonnes by 2030
- Â year of production.
- The state plans to develop 1 GW of electrolyser capacity.
- Barauni Refinery and Hindustan Urvarak & Rasayan are set to be linked with the state’s green hydrogen programme.
- India’s National Green Hydrogen Mission targets 5 million metric tonnes per year of green hydrogen production by 2030.
The Lead
Bihar Green Hydrogen Policy is set to link Barauni Refinery and Hindustan Urvarak & Rasayan with the state’s emerging hydrogen economy, with Bihar targeting 100,000 metric tonnes of annual green hydrogen production and 1 GW of electrolyser capacity as India works toward its national 5 million-tonne annual target by 2030.
The Context
The Bihar Cabinet has approved the draft Bihar Green Hydrogen Policy, marking a new step in the state’s renewable-energy strategy. The policy is aimed at promoting both the production and use of green hydrogen across industrial and transport applications.
The move comes under the broader National Green Hydrogen Mission, which has set a target of 5 million metric tonnes per year by 2030 for India.
Bihar’s policy specifically seeks to connect green hydrogen production with the Barauni Refinery and Hindustan Urvarak & Rasayan. Hydrogen is already used in refinery and fertiliser applications, making these sectors potential industrial users under the state’s planned hydrogen framework.
The policy also identifies future applications in heavy vehicles, buses, trains and marine vessels.
Bihar Sets 100,000-Tonne Green Hydrogen Target
Under the proposed policy, Bihar aims to produce 100,000 metric tonnes of green hydrogen annually. The state also plans to develop 1 GW of electrolyser capacity to support hydrogen production.
Bihar has so far focused primarily on solar power as its renewable-energy development area. The green hydrogen policy would add another segment to the state’s renewable-energy strategy, with production, industrial use and equipment manufacturing forming part of the proposed framework.
Investment Incentives for Green Hydrogen
The policy proposes assistance to investors for the availability of land and water, two critical inputs for green hydrogen projects. It also provides for special financial incentives for green industries.
A key provision is reimbursement of up to 10% of capital costs for the manufacturing of electrolysers and heavy hydrogen vehicles.
The Bihar Renewable Energy Development Agency (BREDA) will initially act as the nodal agency for implementing the policy. The state is also preparing to establish a separate corporation for the green hydrogen sector in the future.
The policy’s proposed connection with Barauni Refinery and Hindustan Urvarak & Rasayan indicates that Bihar is seeking to develop industrial applications alongside new green hydrogen production capacity.
The Bioenergy Business Analysis
Bihar’s proposed 100,000-tonne annual green hydrogen target gives the state a defined production ambition within India’s broader 5 million-tonne national target for 2030. The planned connection with Barauni Refinery and Hindustan Urvarak & Rasayan is particularly significant because it links new hydrogen production with established refinery and fertiliser demand.
For investors, the combination of a 1 GW electrolyser target, land and water assistance, and up to 10% capital-cost reimbursement for electrolyser and heavy hydrogen vehicle manufacturing creates a policy framework for both hydrogen production and equipment supply. However, the source does not provide project-level investment values, construction timelines or specific plant capacities beyond the state’s aggregate targets.
The policy also broadens Bihar’s renewable-energy agenda beyond solar, potentially bringing hydrogen production, industrial decarbonisation and heavy transport into the state’s clean-energy investment pipeline.
Read more: Bihar Cabinet approves Green Hydrogen Policy 2026 with 10 lakh tonne annual production target
