India Hydrogen Alliance Advocates for $2.5 Billion Boost to Green Hydrogen Mission
Key Ideas
- India Hydrogen Alliance proposes an additional $2.5 billion budgetary support for the National Green Hydrogen Mission to enhance demand side incentives and infrastructure development.
- The alliance highlights concerns over slow project development and lack of offtake agreements for green hydrogen, emphasizing the need for incentives and subsidies.
- The increased funding aims to address challenges in sectors like refineries, fertilizers, steel, chemicals, and heavy-duty transport to accelerate green hydrogen projects and meet 2030 targets.
- IH2A collaborates with global and Indian companies to reduce hydrogen production costs and strengthen the local supply chain for sustainable growth.
The India Hydrogen Alliance (IH2A) has urged the government to allocate an additional $2.5 billion to the National Green Hydrogen Mission (NGHM) in the upcoming budget to bolster various aspects of the mission. This budgetary support is crucial for providing incentives on the demand side, funding capital expenditures for hydrogen infrastructure, and facilitating the development of hydrogen hubs. IH2A expressed concerns about the slow progress of projects and the absence of offtake agreements for green hydrogen, suggesting that incentives, subsidies, and the establishment of green hydrogen development corporations would help overcome these challenges. By proposing an increase in budgetary allocation, IH2A aims to encourage more green hydrogen projects by offering offtake-linked incentives to industrial entities in key sectors such as refineries, fertilizers, steel, chemicals, and heavy-duty transport. The alliance believes that this additional funding will contribute to achieving India's green hydrogen goals and targets for 2030. IH2A, a coalition of global and Indian companies, works collaboratively with public and private sector partners to drive down hydrogen production costs and strengthen the local supply chain for sustainable growth.