India Hydrogen Alliance Proposes Billions for Green Hydrogen Growth
Key Ideas
- The India Hydrogen Alliance suggests an additional $2.5 billion to boost the National Green Hydrogen Mission, aiming to accelerate the establishment of a strong green hydrogen economy in India.
- Industry concerns about high green hydrogen costs affecting long-term commitments from key sectors like refineries, fertilizers, and steel are highlighted.
- The alliance recommends demand-side incentives, capital expenditure subsidies for shared hydrogen infrastructure, and the establishment of Green Hydrogen Development Corporations to facilitate large-scale projects.
- The proposal addresses delays in project development and a lack of offtake agreements, emphasizing the need to overcome challenges hindering the growth of the green hydrogen industry.
The India Hydrogen Alliance (IH2A) has proposed an additional $2.5 billion allocation to the National Green Hydrogen Mission (NGHM) on top of the existing $2.3 billion funding. The objective is to combat delays in project development and the absence of offtake agreements, ultimately speeding up the establishment of a robust green hydrogen economy in India. IH2A's submission to the government emphasizes the concerns within the industry regarding the high costs of green hydrogen, which pose obstacles to securing long-term commitments from crucial sectors such as refineries, fertilizers, steel, chemicals, and heavy-duty transport.
The alliance has put forward several solutions, including introducing demand-side incentives for industrial consumers and providing capital expenditure subsidies for shared hydrogen infrastructure within hydrogen hubs. Additionally, the proposal suggests the creation of Green Hydrogen Development Corporations (GHDCs) to streamline the implementation of large-scale projects and hub development initiatives.
The recommendations aim to tackle the challenges currently impeding the growth of the green hydrogen sector in India. By addressing these issues, IH2A seeks to pave the way for a more sustainable and efficient hydrogen economy in the country, aligning with the broader goals of enhancing environmental sustainability and promoting clean energy initiatives.
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Sustainability
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