Accelerating India%E2%80%99s Energy Transition through Industrial Clusters 2025

CASE STUDY 3 Mumbai Green Hydrogen Cluster  To support sustainable energy solutions, the Energy Department (Government of Maharashtra), in coordination with Maharashtra Institution for Transformation (MITRA), is developing a green hydrogen cluster in the Mumbai Metropolitan Region (MMR). This initiative focuses on decarbonizing Mumbai’s dense urban-industrial landscape while creating green jobs, aligning with the state’s vision of 52% green and renewable energy by 2030, as well as Maharashtra’s policy framework to produce 5 million metric tons of green hydrogen annually by 2030. –Project details: The MMR covers South and North Mumbai, including the Trombay area with its concentration of petrochemical, petroleum, hydroelectric and chemical industries – an ideal setting for green hydrogen production. The cluster aims to establish a 10  Kilo Tons Per Annum (KTPA) plant in two phases: –Phase 1: 5 KTPA facility –Phase 2: Expansion to 10 KTPA Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have each committed to offtake 5 KTPA, ensuring project viability and market demand. –Policy framework and incentives: The Maharashtra Energy Department’s 2023 Green Hydrogen Policy, facilitated by Maharashtra Energy Development Agency (MEDA), originally set a target of 50 KTPA. However, recognizing the high capital costs and the nascent stage of green hydrogen technology, and with coordination with MITRA, the policy was adjusted to 10 KTPA to enable a phased, scalable approach. This allows for more manageable implementation while fostering learning and innovation in small-scale urban projects. Key policy incentives include: –Capital expenditure subsidies: 15% subsidy for the first three anchor units up to 10 KTPA –Offtaker support: 15% subsidy to facilitate scaling from 10 KTPA to 50 KTPA –Financial collaboration: MITRA has collaborated with international organizations, including the Asian Infrastructure Investment Bank (AIIB) and Agence Française de Développement (AFD), to secure funding for energy transition projects. While urban decarbonization presents significant challenges, MITRA’s green hydrogen initiative in Mumbai highlights a feasible approach that supports sustainable development and promotes technological advancement.