Why in news:

• The state government of Himachal Pradesh has signed a memorandum of understanding (MoU) with HLC Green Energy LLC for the green hydrogen and green ammonia project.

Key points:

• The decision is intended to be a part of the state government’s bid to push for green energy. The MoU was signed by Himachal Pradesh Chief Minister in the presence of state Industries Minister, Director of Industries, and Managing Director of HLC Green Energy LLC.
• The state government has taken the initiative on the premise that green hydrogen has the potential to reduce greenhouse gas emissions significantly. In addition to that, it also has the potential to reduce fertiliser prices and contribute to the nation’s economy through import substitution.
• In this regard, the state government has pointed out that Himachal Pradesh is already famous for green hydel energy and will now encourage new clean energy projects such as ethanol, green hydrogen, green ammonia, and solar, among others. The state government officials have further underlined that the state will soon become a model for green energy utilisation.
• It should be noted here that the state has a clear-cut advantage on account of abundant green hydel energy and water resources. Making the equation even more favorable for the potential investors, the state government officials has assured full cooperation and support from the state government to the company in setting up the project in the state.
• According to the state industries minister, the company intends to produce 0.3 million metric tons (MMT) of green hydrogen and 1.5 million metric tons (MMT) of green ammonia per year, respectively. The land requirement for this project is around 25 acres and the project is likely to be set up in Una and Kangra due to water and logistics suitability.