IH2A Seeks Expanded Union Budget Support for NGHM: On January 22, the India Hydrogen Alliance submitted recommendation to the Government of India to increase budgetary support for the National Green Hydrogen Mission (NGHM), with an additional USD 2.5 bn allocation in addition to the USD 2.3 bn already allocated. The IH2A recommendation was for additional funds for supporting demand side incentives, capital expenditures for building hydrogen infrastructure and hydrogen hub development. Link
POLICY & MARKET DEVELOPMENTS
- Green Steel Mission: India’s $1.7B Initiative: The Indian government is launching a $1.7 billion "Green Steel Mission" to cut carbon emissions from the steel industry, which contributes 10-12% of the country's total emissions. The initiative includes a Production Linked Incentive (PLI) for Green Steel, renewable energy incentives, and mandates for government bodies to buy green steel. The Steel Ministry is collaborating with the Ministry of New and Renewable Energy (MNRE) to use green hydrogen in steel production, with $52 million allocated for pilot projects until FY2029-30. Link
- AM Green & DP World to Boost Global Green Supply Chain: AM Green has partnered with DP World to create a sustainable supply chain for green fuels and chemicals, boosting global decarbonisation efforts. The collaboration, under a December MoU, will develop logistics and storage infrastructure for exporting 1 million tonnes of green ammonia and 1 million tonnes of green methanol annually. This includes port infrastructure at AM Green’s Net-Zero Industrial Clusters, bunkering facilities in Dubai, India, and Southeast Asia, and strategic terminals across the EU, Far East, and UAE to support the transition to a low-carbon economy. Link
- Sembcorp Partners with Odisha: Sembcorp, a Singapore-based energy provider, has signed two non-binding MoUs with the Government of Odisha to explore the development of a 720,000 metric tonnes per annum green hydrogen production facility and an industrial park. The MoUs were signed through its subsidiaries, Sembcorp Green Hydrogen India and Sembcorp Development, with Odisha's Industrial Promotion & Investment Corporation and Industrial Infrastructure Development Corporation. SGHI will focus on the hydrogen facility, while Sembcorp Development will assess the industrial park. The collaboration aligns with Singapore-India bilateral efforts on sustainability, but is not expected to affect Sembcorp’s financials for 2025. Link
- Indian Oil Announces Green Hydrogen Plant Commissioning in 2 Years: Indian Oil Corporation (IOC) is set to commission its green hydrogen plant in Panipat, Haryana, within two years. The plant, with a capacity of 10,000 tons per annum, is making good progress. IOC Chairman Arvinder Singh Sahney announced that tenders are being evaluated and the project will be awarded soon, with commissioning expected in two years. Link
- NTPC to Develop $21B Green Hydrogen Hub: NTPC Ltd.'s clean energy unit is developing a green hydrogen hub in Pudimadaka, Andhra Pradesh, at an estimated cost of $21 billion. The project, under India's National Green Hydrogen Mission, aims to boost green hydrogen production to 5 million tons annually by 2030. The initiative is part of India’s strategy to decarbonize heavy industries and become a global green hydrogen supplier. The NTPC green hydrogen hub in Pudimadaka will include 20 gigawatts of renewable energy capacity to produce 1,500 tons of green hydrogen per day, along with 7,500 tons per day of derivatives like green methanol, urea, and sustainable aviation fuel for export markets. Link
- SIGHT Scheme's Second Round: India is advancing its green hydrogen goals with the second round of the SIGHT scheme, managed by SECI. The auction has revealed the lowest bidders for government incentives to support green hydrogen production. The National Green Hydrogen Mission, launched in January 2023 with $1.9 Billion USD funding, includes the SIGHT program to support green hydrogen and electrolyser projects. The second tranche aimed for 450,000 tonnes of green hydrogen production with $617 million in incentives. The SIGHT scheme's tiered incentive structure starts at $0.57 per kg in the first year, decreasing to $0.46 in the second and $0.34 in the third year, encouraging long-term investment and innovation in green hydrogen. Link
- Kerala's Green Hydrogen Venture Gets $3.98M Backing: Kerala has received $3.98 million, 90% of the cost, in funding for a green hydrogen pilot project in the transport sector, supported by the Ministry of New and Renewable Energy (MNRE), through viability gap funding to support its commercial viability. The Automotive Research Association of India (ARAI) will approve the project. The green hydrogen project includes two fuel cell trucks, two hydrogen combustion engine trucks, and two refuelling units, with an estimated total cost of $4.4 million. Link
- Hygenco's Green Ammonia Plant in Odisha Set for 2027 Launch: Hygenco Green Energies has secured RFNBO pre-certification from Bureau Veritas, enabling green ammonia exports from India to Europe under the CertifHy scheme. The certification supports EU access to green hydrogen. Hygenco’s plant in Gopalpur, Odisha, will produce 1.1 million tonnes per year, with Phase 1 expected to start by 2027. The European Commission's RFNBO regulations influence global suppliers, and Bureau Veritas highlights the importance of pre-certification for compliance. Hygenco plans to invest $2.5 billion in green hydrogen projects across India. Link
- Avaada Group Unveils $2B Green Energy Investment in Odisha: Avaada Group plans to invest $2.28 billion in Gopalpur’s renewable energy sector, marking a major step towards sustainable energy. The company is set to sign an MoU with the Odisha government for a potential project in Paradip. Avaada Group Chief Vineet Mittal has been in discussions with the state government to align these projects with economic and environmental goals. Link
- Report: India Aims for 5-10 Mt-H2 Production by 2030: India is focused on low-carbon hydrogen to enhance energy security and reduce dependence on imports. The country aims to produce 5-10 million tonnes of hydrogen per year by 2030, primarily through water electrolysis, while localizing electrolyzer manufacturing for potential exports. The plan is structured in two phases: the first phase, from 2022 to 2030, focuses on demand and supply creation, with pilot projects expanding in the second phase. The government has already launched a bidding framework for hydrogen projects, offering financial incentives. The mission aims to create 600,000 jobs and invest $97 billion in low-carbon hydrogen by 2030, with potential expansion depending on the export market's growth. Link
- TN to Become Green Hydrogen Hub with $4.79B Investment: Tamil Nadu is set to become a green hydrogen hub with a $4.79 billion investment from four global energy companies: Petronas-backed Amplus Ganges Solar, Sembcorp Industries' Green Infra Renewable Energy, Acme Green Hydrogen, and ReNew Energy’s ReNew E-Fuels. This initiative supports India’s goal to reduce fossil fuel dependence and carbon emissions, advancing the country’s clean energy future. This investment boosts green hydrogen production in India, reducing reliance on imported fossil fuels and supporting global environmental goals. Link
- ACWA Power and Snam Sign MoU for Green Hydrogen Pipeline: ACWA Power and Snam have signed an MoU to develop a green hydrogen supply chain from Saudi Arabia to Europe. The partnership aims to establish a reliable and cost-effective green hydrogen route, including an ammonia import terminal in Italy, and a 3,300 km hydrogen pipeline (South H2 Corridor) connecting Europe and North Africa. Snam will focus on building a pan-European infrastructure for renewable hydrogen, while ACWA Power is leading green hydrogen production in Saudi Arabia, including a $8.5bn mega plant at NEOM, expected to be the world’s largest green hydrogen facility by 2026, producing up to 600 tonnes of carbon-free hydrogen daily. Link
- Fortum and P2X Solutions Partner for Green Hydrogen Production in Finland: Fortum and P2X Solutions have signed a five-year Power Purchase Agreement (PPA) to support green hydrogen production at P2X’s Harjavalta site in Finland. The agreement, running until 2029, deal aligns with EU regulations requiring renewable energy matching for hydrogen production, initially on a monthly basis, then hourly from 2029. This agreement marks the start of green hydrogen production in Finland under RFNBO guidelines. Link
- H2Global’s New Auction Round Targets Global Hydrogen Supply Chain: Hintco announces the second round of H2Global auctions with a budget of up to EUR 3 billion, approved under EU State aid rules. Germany’s BMWK and the Netherlands' KGG have committed up to EUR 2.5 billion to non-European producers, with additional funding for European-specific tenders under discussion. This approval marks a significant step in advancing renewable hydrogen production, utilization, and international trade, enhancing the H2Global model’s global credibility. Link
- Plug Power to Supply 3GW Electrolysers for Australia's Green Ammonia Plant: Plug Power has signed a final sales agreement to supply 3GW of electrolysers for Allied Green Ammonia's (AGA) green hydrogen and ammonia plant in Australia's Northern Territory. This follows a binding framework agreement signed in October 2024. Plug will now develop the basic engineering and design package (BEDP) for the electrolysis installation, which will help AGA attract investors and finalize financing before the final investment decision in Q2 2025. Link
- Europe Reaffirms Commitment to SouthH2 Corridor Hydrogen Pipeline: Italy, Austria, Germany, Algeria, and Tunisia have reaffirmed their commitment to developing the 3,300-km SouthH2 Corridor pipeline to transport renewable hydrogen from North Africa to Europe. The pipeline will deliver green hydrogen from the African coast to Italy, then onwards to Austria and Germany. The project will repurpose over 65% of existing infrastructure, with new pipeline sections where needed. Backed by strong political support and companies in hydrogen production and offtake, the corridor is set to be operational by 2030. Link
- Africa Poised for Green Hydrogen Growth with EU Support: Africa is set to play a major role in the green hydrogen market, with 41 projects planned over the next five years, led by North African countries like Egypt, Algeria, and Morocco. Challenges remain, including securing offtake agreements, infrastructure, and regulatory frameworks. Egypt aims to produce 10 million tons of green hydrogen annually by 2050. The Africa Green Hydrogen Alliance, supported by EU grants, aims to make Africa a global leader in the sector. By 2030, Namibia's $10 billion project will create thousands of jobs, while Mauritania's projects will produce 40 GW of hydrogen power. While Europe’s REPowerEU plan aims to import 10 million tonnes of green hydrogen annually from Africa, more funding and collaboration are needed. EIC’s Rebecca Groundwater emphasized the need for global business opportunities and international cooperation to address capital shortages. Link
- ENEOS to Build A$200M Green Hydrogen Demonstration Plant: ENEOS is investing A$200 million in a green hydrogen demonstration plant in Brisbane, Queensland, set to produce up to 680 kg of green hydrogen per day starting in 2026. The hydrogen will be converted into methylcyclohexane (MCH) for easier transport and storage, with some to be shipped to Japan. Construction begins in 2025, with production expected in 2026. The two-year project will create 100 jobs and build on a previous smaller plant at the same site. Link
- Scotland’s £2.6B Hydrogen Pipeline Aims to Meet Germany’s Energy Needs: The Scottish Government is advancing plans to export green hydrogen to Germany, starting with shipments by ship and potentially leading to a £2.6 billion pipeline. The initiative aims to meet a third of Germany’s energy needs by 2030 and could create up to 300,000 jobs in Scotland, positioning the country as a key player in the global hydrogen market. Scotland plans to use its excess electricity to produce green hydrogen for export to Germany. Initially, hydrogen will be transported by ship, while a £2.6 billion pipeline is developed which would pipeline run from Scotland to Germany. Link
- Japan's Obayashi Demonstrates Green Hydrogen Transport to Fiji: Japanese company Obayashi Corporation has shipped green hydrogen from New Zealand to Fiji as part of a government-subsidized demonstration project. The hydrogen, produced at Halcyon Power’s geothermal-powered electrolysis plant, was transported in gas cylinders from Auckland to Fiji, where it was co-fired in a diesel-hydrogen generator to produce electricity. The project, funded by Japan's Ministry of Economy, Trade, and Industry, aims to promote renewable hydrogen production and use in partnership with other countries. Link
- Spain’s €1.3 Billion Green Hydrogen Investment: Spanish Prime Minister Pedro Sánchez visited the National Hydrogen Center in Puertollano to reaffirm the government's commitment to green hydrogen. He highlighted the Hydrogen Road Map and the PERTE of Renewable Energy, Renewable Hydrogen, and Storage (ERHA), which will mobilize over €4.3 billion, including €1.5 billion in public investment. Sánchez also announced a €1.3 billion investment to develop green hydrogen hubs across Spain, positioning the country as a global leader in renewable hydrogen production. Link