India’s First API, Green Hydrogen, and 2G Ethanol Plant Established in Himachal Pradesh
Shimla, March 5, 2025 — The State Government of Himachal Pradesh and M/s Spray Engineering Devices Limited, Chandigarh today signed a Memorandum of Commitment (MoC) to further strengthen India’s green energy initiative. The deal will pave way for the setting up of India’s first integrated manufacturing unit for Active Pharma Ingredients (API), Green Hydrogen and 2G Ethanol with an investment of Rs 1,400 crore at BBN area of Solan district.
The mega-venture — creating employment 1000 for the youth — is another step towards re-establishing Himachal Pradesh’s mission to make it the country’s green energy hub. Initially, the facility will need 30 MW of green hydrogen, which will be further expanded to 50 MW, showcasing state’s ambitions towards sustainable development and its commitment for decreasing its carbon footprint.
Addressing the ceremony as the Chief Guest, Thakur Sukhvinder Singh Sukhu, Chief Minister, stated that the Himachal Pradesh Government is rigorously striving for the accountability of green energy in the State by 2026. The state has taken several steps to turn the vision into reality and has signed an MoU with Oil India Limited to set up 1 MW green hydrogen plant in Nalagarh in Solan district, he said. This initiative would also work as a booster dose for the green energy sector in Himachal Pradesh so that the state could emerge as one of the top states in the nation in terms of clean energy generation.
“We are committed to turn Himachal Pradesh into the green energy state of the country. “Renewable energy source is a focus area for the state government and this integrated manufacturing facility is a big milestone in this regard,” said Chief Minister Sukhu at the MoC signing ceremony.
The project will couple green hydrogen production, which is set to become a major player in the clean and sustainable energy paradigm, with 2G ethanol and API manufacturing as part of the state’s wider renewable energy agenda. This multi-faceted approach, will not only help India achieve its environmental sustainability goals, but also play a pivotal role in enhancing the pharmaceutical and biofuels industries of the country.
The creation of this facility comes at a time when India is looking to make itself less dependent on imported fossil fuels while also aiming to reign in carbon emissions. There, green hydrogen made using renewable sources is viewed as a game changer in this work. 2G Ethanol, which is based on biomass, is already considered a renewable fuel as well, and is likely to contribute significantly towards a reduced carbon intensity of the transportation industry.
The MoC was signed by Director of Industries, Dr. Yunus, and Vivek Verma, Managing Director of Spray Engineering Devices Limited. Industries Minister Harshwardhan Chouhan, MLA Sanjay Awasthi, Advisor to Infrastructure Anil Kapil, Additional Chief Secretary R.D. Nazim, Secretary to the Chief Minister, Rakesh Kanwar made their presence felt at the event.
It is expected by the Himachal Pradesh Government that this project will create local job opportunities and bring more investment in the field of green energy and pharmaceutical sectors. Construction of the project is expected to be finished by next year, with possible expansions to come as demand for green hydrogen and other solutions to sustainable energy continue to grow.
Himachal Pradesh is ready to take charge of the Green Energy Revolution in India with this path-breaking project which certainly marks the beginning of a green energy sustainable revolution in the nation.
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