India Hydrogen Alliance Urges $2.5 Billion Boost for National Green Hydrogen Mission
Key Ideas
- The India Hydrogen Alliance recommends allocating an extra $2.5 billion to the National Green Hydrogen Mission for demand-side incentives and infrastructure development.
- Key measures proposed include demand-side incentives for industries, capital expenditure subsidies, and the establishment of Green Hydrogen Development Corporations.
- The organization emphasizes the importance of additional funding to overcome challenges in project development, offtake agreements, and the establishment of national hydrogen hubs.
- Increased funding is expected to boost green hydrogen adoption, reduce production costs, enhance local supply chains, and help India achieve its green hydrogen goals.
The India Hydrogen Alliance (IH2A) has called for a significant increase in funding for the National Green Hydrogen Mission (NGHM) in the upcoming budget. IH2A has recommended an additional $2.5 billion to drive demand-side incentives, capital expenditures for hydrogen infrastructure, and the development of hydrogen hubs across India. The organization highlighted the necessity of extra funds to address challenges such as slow project development and the absence of long-term offtake agreements for green hydrogen.
IH2A proposed various measures to tackle industry challenges, including providing demand-side incentives to industries like refineries, fertilizers, steel, and chemicals to adopt green hydrogen. They also suggested capital expenditure subsidies to support the establishment of hydrogen production facilities and infrastructure, as well as the creation of Green Hydrogen Development Corporations to oversee project development.
Additionally, IH2A emphasized the importance of public funding for establishing five more national hydrogen hubs, crucial for creating a robust green hydrogen ecosystem and achieving India's 2030 targets. The organization expressed concerns over high costs hindering offtake agreements and proposed the increase in budgetary allocation to offer offtake-linked demand-side incentives.
IH2A believes that the recommended increase in funding will stimulate the development of more green hydrogen projects in India. These initiatives are anticipated to lower production costs, strengthen local supply chains, and help India realize its green hydrogen ambitions. The India Hydrogen Alliance, comprising global and Indian companies, aims to make green hydrogen more affordable, enhance its availability, and promote a sustainable hydrogen economy in India.