-IH2A proposes 10% HPO for existing Refinery, Ammonia Plants; 100% HPO for new plants by 2030-
-HPOs for 47 Refinery, Ammonia Plants can create 1.5 MT hydrogen demand by 2030, NGHM domestic target-
-NGHM 2030 targets, USD 80 bn hydrogen investments at risk without HPOs, Demand Side Support-
Mumbai/Delhi, May 8, 2025 – India Hydrogen Alliance (“IH2A”) has made a formal submission to the Government of India proposing Hydrogen Purchase Obligations (HPOs) and Demand Side support for Refineries and Ammonia Plants, 10% HPO for existing plants and 100% HPO for new plants by 2030, to achieve the NGHM 2030 target of 1.5 MT green hydrogen for domestic use in India. IH2A has submitted that without HPOs and adequate offtake and demand creation, NGHM 2030 targets and combined hydrogen-related investments worth USD 80 bn are at risk.
India’s installed electrolyser base is currently <40 MW producing 10,600 MTPA of green hydrogen, which accounts for <1% of NGHM 2030 target of 1.5 MMT for domestic consumption. IH2A has, in its submission to the Government of India, stated that HPOs are critical for meeting NGHM 2030 targets and protecting the public announced hydrogen-related investments in excess of USD 80 bn in India. According to IH2A, without HPOs and Demand Support, planned hydrogen plants and supply projects risk becoming stranded assets.
IH2A has proposed HPOs to replace current grey hydrogen industrial offtake with green hydrogen, as feedstock in Refinery and Ammonia sectors, across 47 existing and proposed plants in India. The IH2A proposed HPOs are divided into the following:
1.Aggregated Industrial hydrogen Offtake in 39 Existing Domestic Projects, across 17 Refineries and 22 Ammonia plants, through a 10% HPO to meet 45% NGHM target by 2030 (672,000 MT).
2.Accelerated Industrial hydrogen Offtake in 8 New Build / Expansion projects across 5 Refinery & 3 Fertilizers plants, through 100% HPOs to meet 55% NGHM target by 2030 (849,000 MT)
Amrit Singh Deo, IH2A Secretariat lead, said, “The Government should consider mandatory Hydrogen Purchase Obligations (HPOs) to induce industrial domestic hydrogen offtake in Refineries and Ammonia sectors to meet NGHM 2030 targets. Mandated HPOs can replicate the success of RPOs from the Renewable Energy sector . Without HPOs and demand support, the combined announced USD 80 bn hydrogen related investments are at risk. Refineries and Fertilizers should have a Common Hydrogen Use and Demand Roadmap to aggregate demand and procure green hydrogen volumes of at least 10% till 2030. Once HPOs are introduced, India can look at the Japan Contract-for-Difference (CfD) framework to part-fund the green hydrogen transition by Refinery and Ammonia sector by 2030, and reduce carbon emissions in these two hard-to-abate sectors.”
IH2A estimates that an additional budget allocation for a USD 2 bn CfD framework, for refineries and fertilizers, can support the transition of all existing refinery and fertilizer plants to 10% HPO offtake and all new plants to 100% HPO offtake by 2030.