Kerala has secured a ₹34.84 crore funding allocation from the Ministry of New and Renewable Energy (MNRE) for its pioneering green hydrogen pilot project in the transport sector. The project, with an estimated total cost of ₹40 crore, will receive approximately 90% of its funding through viability gap funding (VGF) under the Green Hydrogen Pilot Scheme.
The funding breakdown includes ₹5.45 crore allocated for vehicles and ₹29.39 crore for establishing a hydrogen refueling station. The Agency for New and Renewable Energy Research and Technology (ANERT), Kerala’s nodal agency, will implement the project and cover green hydrogen fuel costs for the first two years to support operational expenses.
Two routes have been approved for this initiative: Thiruvananthapuram to Kochi to Edappally. The Automotive Research Association of India (ARAI) is overseeing the project on behalf of MNRE, given its focus on transportation.
This project aligns with Kerala’s broader ambitions to become a leading producer and exporter of green hydrogen and ammonia by 2040. The state’s Green Hydrogen Policy aims to reduce the cost of green hydrogen to ₹200 per kg by 2030, with a state budget allocation of ₹2 billion to establish a green hydrogen hub.
By leveraging its abundant renewable energy resources, Kerala aims to establish a model for clean hydrogen production that can be replicated nationwide, contributing significantly to India’s efforts in combating climate change and promoting sustainable energy solutions.
