India Hydrogen Alliance Pushes for Increased Funding to Accelerate Green Hydrogen Production
Key Ideas
  • India Hydrogen Alliance urges USD 2.5 billion additional funding for National Green Hydrogen Mission in upcoming budget.
  • Funds to support demand side incentives, hydrogen infrastructure development, and establishment of hydrogen hubs.
  • Concerns raised about slow project development and lack of offtake agreement for green hydrogen.
  • Increased budget allocation aims to provide offtake-linked incentives to industrial entities and boost green hydrogen projects for 2030 targets.
The India Hydrogen Alliance (IH2A) is advocating for increased funding in the upcoming budget to bolster the National Green Hydrogen Mission (NGHM) and accelerate green hydrogen production in India. The industry body has recommended an additional USD 2.5 billion allocation to support demand side incentives, capital expenditures for hydrogen infrastructure, and the development of hydrogen hubs. IH2A highlighted concerns regarding the slow progress of projects and the lack of offtake agreements for green hydrogen. By proposing the expansion of budgetary support, IH2A aims to address these challenges and encourage the participation of green hydrogen offtake entities in various sectors. The increased funding is expected to attract industrial players in sectors like refineries, fertilizers, steel, and chemicals, as well as heavy-duty transport, by offering demand side incentives linked to offtake. IH2A believes that this financial boost will drive the development of more green hydrogen projects, enabling India to achieve its green hydrogen targets by 2030. The alliance, comprising global and Indian companies, collaborates with public and private sector partners to reduce hydrogen production costs and enhance the local supply chain. This initiative signals a positive step towards advancing India's energy transition and fostering economic growth through sustainable practices.
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