Boosting Green Hydrogen: IH2A Advocates for Increased Budget Allocation
Key Ideas
- India Hydrogen Alliance requests an additional $2.5 billion for the National Green Hydrogen Mission in the upcoming budget to support demand incentives and infrastructure development.
- The increased budget allocation aims to address industry concerns about slow project development and lack of offtake agreements for green hydrogen.
- IH2A emphasizes the importance of providing offtake-linked demand side incentives to industrial sectors to boost green hydrogen projects and meet India's 2030 targets.
- The alliance collaborates with global and Indian companies along with the government to reduce hydrogen production costs and enhance the local supply chain.
The India Hydrogen Alliance is advocating for an additional budgetary allocation of $2.5 billion for the National Green Hydrogen Mission (NGHM) in the upcoming Budget. This funding will be utilized for demand incentives, capital expenses for hydrogen infrastructure, and the development of hydrogen hubs. The IH2A has expressed concerns about the slow progress of projects and the absence of offtake agreements for green hydrogen. By recommending increased financial support, including demand side incentives and subsidies, IH2A aims to tackle these challenges. The proposed funds will also aid in establishing five new national hydrogen hubs, contributing to the growth of green hydrogen projects in India.
The IH2A's Secretariat Lead highlighted the reluctance of potential green hydrogen offtake entities to commit due to high prices of green hydrogen. To address this issue, the alliance suggests augmenting the budget by $2.5 billion to provide incentives to industrial sectors like refineries, fertilizers, and transportation, thereby accelerating the development of green hydrogen projects. This strategic move is expected to propel India towards achieving its green hydrogen ambitions and targets for 2030.
Comprising global and Indian firms, IH2A collaborates with various stakeholders to drive down production costs of hydrogen and strengthen the local supply chain. By advocating for increased budget allocation and emphasizing the significance of demand side incentives, IH2A aims to foster the growth of green hydrogen projects, aligning with India's sustainable development goals.
Topics
India
Renewable Energy
Sustainable Development
Infrastructure Development
Government Support
Carbon Neutrality
Economic Growth
Industry Alliance
Budget 2025
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