India H2 Monitor – February 2024


  • Govt to draft guidelines supporting CfD subsidy for green hydrogen power plants: In order to reduce risks of intermittent power generation for green hydrogen projects, the Ministry of New and Renewable Energy gave directions to draft guidelines for a subsidy scheme that can provide round the clock renewable electricity for the use of green hydrogen. The mechanism that has garnered consideration is that of Contract for Difference (CfD) subsidy, wherein the government shall fill in the difference, when the market power price is lower than a strike price agreed during the auction. Link
  • Centre allocates USD 14M for GH2 pilot projects in shipping: To initiate pilot projects  for utilization of  Green Hydrogen in the maritime sector, Ministry of Shipping and Hydrogen Division of the MNRE has announced the scheme outlining support for retrofitting existing ships with a Green Hydrogen propulsion system and creation of bunkering facilities in ports. The scheme falls under the National Green Hydrogen Mission, with a budget of USD 14 million till 2025-26 and will be implemented by the Shipping Corporation of India. Link
  • MNRE introduces guidelines for pilot projects in GH2 for Steel Sector: Under the National Green Hydrogen Mission, MNRE has allocated USD 54.8 million for implementing pilot projects in the Steel Sector, for replacing fossil fuels and fossil fuel-based feedstock with Green Hydrogen and its derivatives. These projects covers up to 70% of some costs, like Direct Reduced Ironmaking (DRI). The aim is to test methods including 100% hydrogen DRI, using hydrogen in blast furnaces, and fossil fuel substitution. Link
  • Govt announces guidelines for GH2 pilot projects in transport sector: MNRE has issued guidelines to support pilot projects based on use of Green Hydrogen as fuel in buses, trucks and four wheelers with an outlay of USD 59.8 million to advance fuel cell and internal combustion technologies. The other focus area for the scheme is to support development of infrastructure such as hydrogen refuelling stations. Link
  • Adani aims to secure $3 bn from at least six international banks: Indian Conglomerate Gautam Adani is in discussions with Singaporean bank DBS, Deutsche Bank, First Abu Dhabi, Japan’s MUFG Bank, UK-based Standard Chartered, and Dutch financial powerhouse ING to secure up to USD 3bn, for capital spending as part of company’s planned USD 50bn investment in renewable H2 infrastructure in Gujarat. Besides green hydrogen production, Adani New Industries Ltd plans to build electrolyser manufacturing capabilities and components for upstream renewables over next ten years. Link
  • Indian Oil Corporation cancels tender for first green hydrogen plant: The IOCL tender for 10 kilo tonne per annum green hydrogen plant at Panipat Refinery was called off due to petition by industry associations challenging the opaqueness in selection of bidder. This tender was the first big step towards manufacturing green hydrogen in the country and the only bid received was from GH4India Pvt Ltd, a joint venture including IOCL, Larsen & Toubro and ReNew. Link
  • BPCL plans green hydrogen plant for Cochin International airport: As part of its 2040 net zero goals, Bharat Petroleum Corporation Ltd shall set up India's first-ever green hydrogen plant located within the Cochin International airport. The 1,000-kilowatt plant will be built and operated by BPCL and the initial output will be used to power vehicles at the airport. BPCL plans to invest USD18.16 billion over the next five years to grow its oil business and expand renewable energy portfolio. Link
  • Karnataka to capitalise GH2 market through incentives: The industrially active state Karnataka has announced a series of initiatives to boost the green energy sector, with an allocation of USD 2.7 billion. The state government has also directed several long-term initiatives, including enhancing the installed power generation capacity from 32,000MW to 60,000MW in next seven years. Link
  • Uttar Pradesh to chart out green hydrogen plan: UP Government aims to build a green hydrogen capacity of one million tonnes annually and set up two research and innovation centres that can generate 12,000 jobs. To give boost to the green hydrogen/green ammonia production, the state government has prepared a draft of its Green Hydrogen Policy 2023, which is in its final stage of approval. The implementation will fall under the scope of  Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). Link
  • India to enforce new norms for renewable energy consumption: Starting April 1, 2024 Government of India will implement new standards for distribution licensees regarding the consumption of renewable energy. Under the Electricity Act (Sec 86), SERCs are mandated to specify the consumption of electricity sourced from Renewable Energy. In line with this, all SERCs would be enforcing new norms to ensure that distribution licensees leverage 180 GW of installed renewable energy capacity. Link
  • ACME Group and Indian Gas Exchange to collaborate on GH2 and ammonia market: ACME Group and IGX have signed an MoU with the objective to develop a physical trading market for green molecules across India, starting with regional hubs located near hydrogen and ammonia projects, eventually expanding to a nationwide hub. The MoU focuses on entire green hydrogen and ammonia value chain, from production, logistics and supply to their use in a range of applications. Link
  • L&T and Matrix awarded subsidies under Green Hydrogen Promotion Scheme : After Jindal India backing out of the Green Hydrogen Promotion scheme (Sight), L&T Electrolysers Ltd and Matrix Gas and Renewables Ltd have been awarded subsidies to set up electrolyser manufacturing capacity. These incentives fall under the purview of the SIGHT Scheme which has an outlay of USD 2.35 Bn. Link
  • John Cockerill Group aims to invest in India and manufacture electrolyser plant: With plans to invest in the green hydrogen segment in India, John Cockerill has planned a 2-GW joint venture facility with Greenko a major hub for electrolyser exports,. The plant is expected to be commissioned within the next two years. As per the CEO of John Cockerill, the demand for Green Hydrogen production has already lined up in India, which is motivating the group to develop one of the largest plants for India and its neighbouring countries. Link
  • NTPC Green Energy develop green hydrogen hub in Andhra Pradesh: NTPC’s subsidiary, NGEL has signed an agreement with Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the development of an integrated green hydrogen hub. This project includes construction of India's largest green hydrogen production facility (1200 TPD tonne per day), which will be converted to derivatives of hydrogen such as green ammonia and green methanol, primarily catering to various export market. Link
  • Reliance Industries plans to retrofit 5,000 trucks to operate on a hydrogen ICE:  Reliance Industries aims to convert about 5,000 of its own trucks to operate on hydrogen ICE units by mid-year 2024. For future, Reliance also plans to set up its own refuelling stations on major road freight routes in India, such as Mumbai to Delhi, with the plan of enabling trips of 1,500km in the H2 truck. The company has also developed roadmap for investing USD10bn in new energy projects. Link


  • Japan to pay 15 years CfD to birth green hydrogen technologies: Starting in 2024, Japan will offer Contracts-for-Difference style subsidies for both domestic and imported green hydrogen. Hydrogen suppliers, including companies exporting H2 to Japan, can start applying for these subsidies in 2024, provided they can supply at least 10,000 tonnes a year from 2030. Link
  • European Hydrogen Bank’s pilot auction receives 132 bids: For renewable hydrogen production in Europe, the pilot auction by European Hydrogen Bank received 132 bids from 17 European countries for a total planned electrolyser capacity of 8.5 gigawatts (GWe). Over next ten years, this would lead to a total production volume of 8.8 million tonnes of renewable hydrogen for EU’s domestic use. Link
  • European Commission grants USD 7.48B for Hydrogen Infrastructure Project: With the aim to build hydrogen infrastructure network, European commission directed a grant of USD 7.48 bn involving seven European countries—France, Germany, Italy, the Netherlands, Poland, Portugal and Slovakia. The initiative includes the installation of 3.2 GW electrolysers, construction of 2,700 km of pipelines, and development of 370 GWh storage facilities and its completion is expected by 2029. Link
  • Germany investing USD 17.36B in hydrogen-ready gas power plants: German government plans to offer subsidies for gas power plants with a total capacity of 33.8 GW, which includes 10 GW for four plants, 8.8 GW of new hydrogen-based plants, and 15 GW of plants transitioning from natural gas to hydrogen. Germany wants the hydrogen transition to be drawn up by 2032 to allow the plants to completely switch to hydrogen during 2035-2040. Link
  • Lhyfe and SAF+ International sign MoU to produce e-SAF: With an MoU in place, the SAF + group and Lhyfe will be collaborating to develop the production of e-SAF from green and renewable hydrogen, at a production site located in the Le Havre area.  The e-SAF will be shipped from Le Havre to French airports through the current hydrocarbon pipelines. Lhyfe plans to construct a green hydrogen facility capable of producing over 100 tonnes daily (300 MW electrolysis capacity) to support SAF+'s proposed e-SAF production site. Link
  • Egypt to place 55% tax credit to boost green hydrogen production: Egypt has launched a slew of tax incentives for green hydrogen projects, including a credit between 33-55% to developers on green hydrogen projects to spur development of the fuel. The legislation signed would have a direct bearing on green hydrogen projects in the African nation. Additionally, green hydrogen producers have been given authority to export products and import materials without undertaking a licence or undergoing registration. Both functions can be performed directly or via an intermediary, which will ease the regulatory process. Link
  • Shell to exit operations for hydrogen light duty passenger fuelling stations in California: Shell has exited the fuelling hydrogen passenger cars in California, which is the only U.S. state where the fuel is available easily for mid-to-long distance driving ranges. Shell's latest decision represent fatal blow for hydrogen fuel cell passenger technology which is struggling to take-off in California, as well as across the US. Link
  • US Clean H2 Hubs recommend revision in Inflation Reduction Act for scaling investments: The US Regional Clean Hydrogen Hubs which were selected for a combined $7bn of funding have suggested the federal government to amend the proposed guidance on IRA’s clean hydrogen production tax credit (PTC). The H2 hubs have advised to bring down costs and increase access to clean hydrogen and to revise its proposed guidance on the hydrogen PTC so that more hubs can come up in the country for better access to clean H2. Link
  • Japan to spur clean hydrogen production with USD 20B in subsidies: Japan plans to allocate 3 trillion yen over the next 15 years to subsidize the production of cleaner hydrogen, with a specific focus on limiting carbon dioxide emissions during production. Japan has set a strict upper limit of 3.4 kgs of CO2 emissions per 1 kg of hydrogen to qualify for subsidies. Additionally, Japan aims to significantly increase its domestic hydrogen supply, targeting a 50% rise over the current level to reach 3 million tonnes by 2030 and a monumental 20 million tonnes by 2050. Link
  • Six green hydrogen projects shortlisted for headstart funding: Six green hydrogen projects totaling more than 3.5GW of capacity have been shortlisted for USD 1.35 billion of subsidies under Australia’s Hydrogen Headstart programme. Under the Program, projects seeking to produce renewable hydrogen or derivatives, such as renewable ammonia or methanol, at scale can apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and the market price. Link
  • Mitsubishi to Invest in World’s Largest Green Hydrogen Project: Japan's Mitsubishi Corp. is investing USD 690 million in the Eneco Electrolyzer project, slated to become the world's largest green hydrogen initiative. With an 800 MW capacity, it aims to produce up to 80,000 tons of hydrogen annually, surpassing current global green hydrogen production capabilities by 30 times. Link
  • Essar’s UK hydrogen production facility gets green light: Cheshire West and Chester Council has approved groundbreaking plans by Essar Energy Transition (EET) Hydrogen for the first large scale, low carbon hydrogen production plant (HPP1) in the UK. Consisting of two plants, the hydrogen hub will enable local industrial and power generation businesses to switch from fossil fuels to low carbon energy. The hydrogen will be used locally by the Essar refinery and other major manufacturers in the region, including Tata Chemicals, Encirc and Pilkington to create the first low carbon refining operations, glass and chemicals manufacturing sites in the world. Link