India Hydrogen Alliance Seeks $2.5 Billion Boost for National Green Hydrogen Mission
Key Ideas
- India Hydrogen Alliance requests $2.5 billion additional budgetary support for National Green Hydrogen Mission in upcoming Budget.
- Funds are crucial for demand side incentives, hydrogen infrastructure development, and hydrogen hub establishment.
- Concerns raised over slow project development and lack of offtake agreements for green hydrogen.
- Increased budget allocation aims to boost green hydrogen projects and meet India's 2030 targets in refinery, steel, chemical, and transport sectors.
The India Hydrogen Alliance is advocating for an extra $2.5 billion budgetary support for the government's National Green Hydrogen Mission (NGHM) to accelerate the transition towards green energy. This additional funding would play a pivotal role in providing essential incentives for demand, supporting capital expenditures for hydrogen infrastructure, and facilitating the development of hydrogen hubs. The Alliance has highlighted concerns regarding the sluggish pace of project development and the absence of offtake agreements for green hydrogen. By recommending measures such as demand side incentives, capital expenditure subsidies, and the establishment of green hydrogen development corporations, the Alliance aims to address these challenges and foster the growth of the hydrogen sector. The proposed increase in budgetary allocation is intended to encourage green hydrogen offtake entities in various industrial sectors like refineries, fertilizers, steel, chemicals, and heavy-duty transport, thereby driving the development of more green hydrogen projects. IH2A believes that this financial boost will further India's progress towards achieving its green hydrogen ambitions and 2030 targets. IH2A, a collaboration of global and Indian companies, is dedicated to working with both the public and private sectors to reduce hydrogen production costs and enhance the local supply chain in support of a sustainable future.
Topics
India
Green Energy
Infrastructure Development
Economic Growth
Public Funding
Industrial Sectors
Policy Recommendations
Industry Concerns
Budgetary Support
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