Kerala's Bold Move to Dominate India's Green Hydrogen Frontier

2025-10-06 industry

Thiruvananthapuram, Monday, 6 October 2025.
Kerala aims to lead India’s green hydrogen economy by leveraging unique geography and existing renewable infrastructure. ANERT’s strategic initiatives promise a substantial energy transformation and sustainable growth.

Kerala’s Ambitious Green Hydrogen Vision

Did you hear the big news? ANERT is spearheading a bold initiative to position Kerala as a leader in India’s green hydrogen economy. The state has set its sights on achieving carbon neutrality by 2050, with green hydrogen playing a central role [1]. By 2040, Kerala aims to be at the forefront of green hydrogen production, aligning with its broader renewable energy aspirations. This isn’t just a dream; it’s a strategic plan to leverage the state’s abundant resources and geographical advantages [1].

Strategic Initiatives and Investments

Kerala’s strategy is as robust as a coconut tree in a monsoon. The upcoming Green Hydrogen Policy, slated for release by the end of FY 2025-26, will introduce policy enablers, capacity-building programs, and pilot projects [1]. In the spirit of ‘go big or go home,’ the state plans to drive down green hydrogen costs by 30% by 2030 through demand creation and strategic incentives [1]. Imagine that! A 25% capital expenditure support for the first 100 MW of electrolysers is also on the cards, with plans to cap this at ₹1.5 crore per MW [1].

The Financial Muscle Behind the Initiative

Talk about putting your money where your mouth is! Kerala has earmarked ₹50 crore to establish its first Green Hydrogen Hub [1]. Additionally, there’s a ₹133 crore commitment to the Kerala Hydrogen Valley Innovation Cluster (K-HVIC), which sounds as futuristic as it is ambitious [1]. And if that wasn’t enough, the state has announced a ₹200 crore budget for Viability Gap Funding and strategic investments in Kochi and Thiruvananthapuram [1].

Hydrogen Valleys: The Future is Now

Kerala is already working on initial Hydrogen Valleys in Kochi and Thiruvananthapuram. These aren’t just buzzwords. They’re real places where production facilities, mobility applications, and R&D centres will co-locate [1]. These valleys aim to reduce the costs of green hydrogen even further in the long term, bringing it to or below ₹200 per kg through competitive renewable power [1].

The Broader Impact

This green hydrogen transition isn’t just about hitting targets; it’s about strategically positioning Kerala for economic and environmental benefits. The move will strengthen energy security and reduce dependence on imported power and fossil fuels [1]. By replacing imported diesel and LPG with locally produced green hydrogen, Kerala is not just participating in the global energy transition but leading it [1].

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