India Hydrogen Alliance Advocates for Increased Budget Support for Green Hydrogen Mission
Key Ideas
- India Hydrogen Alliance (IH2A) requests an additional USD 2.5 billion budgetary support for the National Green Hydrogen Mission (NGHM) to boost demand-side incentives, capital expenditures, and hub development.
- IH2A highlights concerns regarding slow project development and lack of offtake agreements for green hydrogen, proposing solutions such as demand side incentives, capex subsidies, and green hydrogen development corporations (GHDCs).
- The increased funding aims to encourage offtake-linked demand side incentives for various industrial sectors, such as refineries, fertilizers, steel, chemicals, and heavy-duty transport, to accelerate the development of green hydrogen projects and achieve India's 2030 targets.
- IH2A emphasizes collaboration between global and Indian companies, private sector partners, and the government to reduce hydrogen production costs and enhance the local supply chain for sustainable growth.
The India Hydrogen Alliance (IH2A) has urged the Indian government to allocate an additional USD 2.5 billion for the National Green Hydrogen Mission (NGHM) in the upcoming Budget to support the demand side incentives, capital expenditures, and hydrogen hub development. IH2A emphasized the necessity for this budget increase to address industry concerns regarding slow project development and the absence of offtake agreements for green hydrogen. Proposed solutions include demand side incentives, capex subsidies, and the establishment of green hydrogen development corporations (GHDCs). IH2A's recommendation aims to secure offtake-linked demand side incentives for various industrial sectors like refineries, fertilizers, steel, chemicals, and heavy-duty transport. By increasing the budget allocation, IH2A aims to boost the development of green hydrogen projects, enabling India to achieve its green hydrogen ambitions and 2030 targets. The alliance, comprising global and Indian companies, focuses on fostering public-private partnerships to drive down hydrogen production costs and enhance the local supply chain for sustainable economic development.
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