Hintco Offers Solution to Indian Green Hydrogen Market Barriers
Key Ideas
- Indian green hydrogen industry faces a challenge with the lack of long-term buyers hindering investment plans despite having the technology and required investments in place.
- European non-profit organisation H2Global's unit, Hintco, proposes to act as an intermediary to facilitate long-term offtake agreements with Indian companies and short-term supply agreements with international markets.
- The solution involves joint funding by governments to bridge the cost gap, with a successful pilot project in Canada and potential discussions with Indian officials for a similar arrangement.
- India aims to boost green hydrogen consumption to 40% by 2030, becoming a global hub for green hydrogen production, usage, and export, supported by initiatives like the National Green Hydrogen Mission.
The Indian green hydrogen industry has been facing a significant barrier in the form of the lack of long-term buyers, preventing companies from moving forward with their investment plans despite having the necessary technology and investments in place. Recognizing this issue, Hintco, a unit of the European non-profit organisation H2Global, has offered a solution by proposing to serve as an intermediary. The organization aims to facilitate long-term offtake agreements with Indian green hydrogen manufacturers like Reliance Industries and the Adani Group, while also establishing short-term supply agreements with companies in markets such as Europe.
This approach involves pricing discovery through double-sided auctions and the joint funding of the viability gap by the concerned governments. The successful piloting of a similar project in Canada, with green hydrogen supply to Germany, showcases the feasibility and potential benefits of this model. Discussions between Hintco representatives and Indian government officials have begun, with the aim of exploring a collaborative demand-supply arrangement for green hydrogen.
India's ambition to increase green hydrogen consumption to 40% by 2030 aligns with its vision to establish itself as a global leader in green hydrogen production, usage, and export. Initiatives like the National Green Hydrogen Mission, supported by a substantial budget of ₹19,744 crore, demonstrate the country's commitment to fostering a sustainable hydrogen economy. By bridging the cost gap and promoting the adoption of green hydrogen, India aims to accelerate its transition towards cleaner and more sustainable energy sources.
Topics
Green Hydrogen
Technology
Project Funding
Collaboration
Investment Plans
Government Grants
Demand-supply Arrangement
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